The IRS uses Letter 672C to inform you of some action they made regarding a payment you made to them. Below are two examples of how the IRS uses Letter 672C.
The IRS often uses Letter 672C to inform you of their application of a particular payment you made. If there is any excess the IRS applies the overpayment to any other balance due. But, the order in which payments are made is extremely important. The IRS will apply your payments to the earliest year for which you owe.
However, because of the collection statute of limitations, it is usually to your advantage to designate any voluntary payments you make to the IRS. Amounts you pay through a payment plan or a levy are not considered voluntary.
Response to Letter 672C
If you agree with the IRS then there is no need to hire an attorney. But, if you have questions or problems with designation of voluntary payments, please follow the Prep Steps & call TaxHelpLaw.
Often, your questions can be adequately answered by the tax return preparers at TaxHelpReturns.