IRS Letter 2975 is an URGENT notice to inform you the IRS intends to levy against your assets. It is very similar in effect to the CP523 for individuals. They are cancelling your installment agreement and after 30 days they can seize business assets.
Respond to Letter 2975
The IRS reason for cancelling the agreement may be vague but it is usually because the business owes other taxes or has unfiled tax returns.
This is a dangerous letter because the IRS probably already knows a lot of information about the business from the last time an installment agreement was arranged. So, they could seize the assets & income easily.
Nevertheless, you usually must complete Form 433-B to disclose the business income & assets. Please take our Webinar for Form 433B to discover the tricks & traps of completing this form! Then, follow the Business Tax Prep Steps and the Collection Prep Steps prior to your appointment!