IRS Letter 2645C – What It Means
IRS Letter 2645c is an interim letter from the IRS saying they need more time (45-60 days) to review the documents or information you submitted. The Internal Revenue Manual refers to them as “interim letters” (IRM 4.19.23). The letter merely states that the IRS has received something from the taxpayer but has not yet acted on it.
Normally, a taxpayer receives IRS letter 2645C because the taxpayer previously contacted the IRS to resolve a matter. The IRS has received the information but the information has not been processed yet. However, the IRS is required to notify taxpayers in the event of a delay. IRS Letter 2645C serves as a notification advising more time is required to process your information. Usually, the delay is 60 days.
Why Did I Receive IRS Letter 2645C?
According to their website, the IRS sends notices and letters for the following reasons:
- Balance due – You have a balance due.
- Refund amount changed – You are due a larger or smaller refund.
- Questions – We have a question about your tax return.
- Verification – We need to verify your identity.
- Information – We need additional information.
- Changes made – We changed your return.
- Delays – We need to notify you of delays in processing your return.
What Should You Do?
Read notice 2645C thoroughly. You can wait for the IRS to contact you when your request has been processed. Also, you can phone the IRS. However, the IRS employee will likely suggest that you allow the IRS the period specified in the letter to process your request. Ultimately, the IRS will send you a follow-up letter. Hopefully, the IRS will process your request within the timeframe specified in the letter. Alternatively, they may also send you a letter alerting you that further time is required.
Your notice or letter will explain the reason for the contact and give you instructions on how to handle the issue. If you agree with the information, there is no need to contact us. Each notice or letter contains a lot of valuable information, so it’s very important that you read it carefully. If we changed your tax return, compare the information we provided in the notice or letter with the information in your original return. We provide our contact phone number on the top right-hand corner of the notice or letter. Typically, you only need to contact us if you don’t agree with the information, if we requested additional information, or if you have a balance due. You can also write to us at the address in the notice or letter. If you write, allow at least 30 days for our response. (Source: irs.gov)
Frequently Asked Questions
Can you get IRS Letter 2645C more than once?
Some people receive Letter 2645C several times. You are essentially being told that you are on hold. During tax season, the IRS can become overloaded with taxpayer correspondence. Letter 2645C informs you that they received your information but have yet to deal with it. IRS Letter 2645C is the equivalent of being put on hold on the phone. Or, being told at a restaurant that your table isn’t ready yet. You’re in line, but the IRS hasn’t yet reached you. At the very least, the IRS is letting you know you are not completely lost in the system.
IRS Letter 2645C – Do I need to make a payment?
Some IRS letters include payment instructions. This does not imply that you owe money in the case of IRS Letter 2645C. The IRS reminds you that if you owe money, interest and penalties apply from the date the money was due. That is normally the deadline for filing your tax return. The IRS does not suspend interest or penalties while it processes your information. Continue making payments to the IRS if you are already doing so. This can either prevent you from owing interest and penalties in the future or lessen the amount you owe.
What if I’m supposed to be getting a refund?
You may receive Letter 2645C after checking your refund status online and seeing code 570. Tax Code 570 on your IRS Transcript means additional reviews are required and your return processing and refund have been temporarily frozen. Your refund is still being processed and a delayed tax refund might occur for a variety of reasons. Letter 2645C informs you that it is reviewing your return and that no further information is required from you. Therefore, there is little you can do to hasten the processing of your refund. After reviewing your return, the IRS will either issue it as requested or alter the amount. If the IRS needs more information or alters your refund, they will send you a second notice or letter.
IRS reference number 1242 indicates a discrepancy and the account is frozen pending review of supporting documentation from the taxpayer or third parties. In most instances, an IRS CP05 Notice is issued in which the IRS notifies the taxpayer in writing that their return is on hold and under review. The review is in order to verify certain line items on the submitted tax return.
The IRS recommends that you check the status of your return on the IRS WMR “Where’s My Refund?” portal. Often, you will see a message saying your return is being processed or that your refund is on the way. Occasionally, you may obtain one or more error codes. For example, IRS reference number 1242. IRS uses code 1242 to inform you that your return has, in fact, been received electronically. However, your return has been selected for review and will be frozen until the review process is complete. The IRS selects some returns randomly to determine if income, expenses, and credits are being reported accurately. As a result, this doesn’t mean you made an error or were dishonest. The IRS simply utilizes code 1242 to signify that your return was received, but it has been selected for review. Therefore, it will be frozen until the review process is completed.