Letter 681C is usually used for some general communication of various IRS procedures. Often, it is related to affirming some arrangement to full-pay. (See example) Perhaps it explains penalties or interest, as in the example below. This is essentially the same explanation in other IRS documents you have or will receive. Sometimes, the IRS includes the same information in a Letter 96C.
Respond to Letter 681C
This is a very general letter and will likely not assist you in reducing or eliminating your IRS problem. But, if you follow the Prep Steps you can get the penalties reduced. Your tax bill can be lowered by up to 50%!
The more time elapses from the date your return was filed is favorable to you. After 2 years from the date of assessment most income taxes are dischargeable in bankruptcy. At that point, you can file a bankruptcy or make an Offer-of-Compromise. Also, you could just continue making payments or try to get payments lowered.
Use this Estimator to see if your taxes can be erased with Bankruptcy.
Of course, with all general tax problems a specific solution is often available. Call our office for more specific advice!
