What This Letter Means

Letter 672C, Payment(s) Located and/or Applied, explains something the IRS did with a payment or credit on your account. It is used in several situations:

  • You reported a missing payment, and the IRS found it and applied it.
  • A payment or credit was moved from one tax year or account to another.
  • An overpayment was applied to another balance you owe, or refunded.
  • You asked about your collection statute date and the IRS is explaining how it was figured.
  • You made a payment on a tax year the IRS can no longer legally collect.

What to Do

  • Read where the money went. Match the amount and date to your bank records or canceled check.
  • Check your balance. If the payment was applied to a different year than you intended, note which one.
  • Call the number on the letter if the payment still isn't where it belongs.

Payments on a Year Past the Collection Deadline

The IRS generally has a limited time to collect a tax debt. If you paid on a year where that time has run out, the payment isn't required. In that case the letter asks what you want done with it: apply it to that year anyway, apply it to another balance you owe, or refund it to you. If you don't answer within 30 days, the IRS applies the payment to another tax balance, and if there isn't one, refunds it. If you want the money back, say so in writing before the deadline.

If You Disagree

If the letter says a payment was applied somewhere you didn't authorize, or a payment is still missing, write back with a copy of the letter and proof of payment (front and back of the canceled check, or your bank or EFTPS confirmation). Keep copies.

If you received Letter 672C and your payments still don't add up, call us at (813) 229-7100.