LETTER 2975

IRS Letter 2975 is a notice from the Internal Revenue Service (IRS) informing a taxpayer that their installment agreement has been defaulted. This means that the taxpayer has failed to make payments on their tax debt according to the terms of their agreement.

There are a few reasons why a taxpayer might receive IRS Letter 2975:

• Missing a payment: If a taxpayer misses a payment on their installment agreement, the IRS may consider this a default.
• Making a late payment: Even if a taxpayer makes all of their payments, they may still be considered in default if they make a payment late.
• Failing to file a tax return: If a taxpayer fails to file a tax return, the IRS may terminate their installment agreement.
• Failing to provide financial information: The IRS may ask taxpayers for financial information to ensure that they are making the largest possible payments on their tax debt. If a taxpayer fails to provide this information, the IRS may terminate their installment agreement.

• If you receive IRS Letter 2975, you should contact the IRS immediately. You have 30 days to reinstate your installment agreement before the IRS terminates it.
• To reinstate your installment agreement, you will need to make all of your missed payments and provide the IRS with any financial information that they have requested. You may also need to pay a reinstatement fee.
• If you are unable to reinstate your installment agreement, the IRS may take further collection action, such as levying your bank account or wages.

• The best way to avoid receiving IRS Letter 2975 is to make all of your payments on your installment agreement on time and in full. You should also provide the IRS with any financial information that they request.