My all-time favorite and most ambiguous IRS letter is the 2645C. The Internal Revenue Manual refers to them as “interim letters” (IRM 4.19.23), which is a nice label given to a letter that is simply saying the IRS has received something from the taxpayer but has not acted on it yet. And when I say the IRS has received “something,” I literally mean anything — it is up to the taxpayer to figure out what that might be based on the receipt date in the letter that is often inaccurate. The IRS inquiry letter does give a few options as if to jog one’s memory:
- Telephone inquiry
- Response to our inquiry or notice
- Penalty abatement request
- Installment agreement
Yes, it says “other.” This list is taken directly from the form letter 2645C. It goes on to say that the IRS hasn’t resolved the matter because they haven’t completed all the processing necessary for a complete response. This letter is completely baffling to me, and I am always wary of those times I am told that the IRS hasn’t “finished processing” something. What that usually means is they haven’t even looked at it. If they had looked at it, then would it really be that difficult to specify if this something is a payment, a phone call, penalty abatement, or “other”?
Probably the most perplexing option in the list above is “payment” because what kind of processing is really necessary when a payment is received? Yes, a determination needs to be made as to where to apply the payment (what tax year or period), but what else? It seems to me that the processing of a payment is the one thing that the IRS would not put off for later.
Next this letter states that the IRS will contact the taxpayer within a specified time frame (usually 45 days). The letter ends with a friendly reminder about how to make installment payments, including how to annotate your check. In other words, we’re not sure what you sent us, and we won’t get to it for 45 days, but in the meantime be sure you don’t miss a payment. Sincerely, IRS.