Form 2290 : IRS Letter 608C (Dishonored Payment Notice)

Those of you that just submitted Form 2290 for the Heavy Use Vehicle Tax (HVUT) and received the IRS Letter 608C indicates that your payment is in range default status due to dishonor, be it due to lack of funds, incorrect banking information, or something else. Failure of action may cost you penalties and interests so performing action is of utmost importance. This guide will cover what IRS Letter 608C is, what actions triggered it, and how to make it alright.

Defining the Issue of IRS Letter 608C

A formal reminder that taxpayer’s Form 2290 tax payment has gone through rejection at their banking institution is specified under IRS Letter 608C. This letter is made available by the IRS when a certain bank refuses a check or a credit electronic funds transfer for purposes of:

• A certain level of Insufficient funds being present in the account
• Incorrect banking details being passed during payment
• Closed bank account with a block on payment ACH debits
• Failure of the Bank to make the payment due to some technical issue

This letter will bear the amount due, the reason payment was dishonored, and how to fix it.

What Actions to Take on IRS Letter 608C

It is of utmost importance to Letter 608C that one dispatches it immediately or face penalties.

Here is what you need to do:

1. Investigate the failure reason by communicating with the necessary parties such as your bank.

2. Make the payment using an alternative method like the following:

• Electronic Federal Tax Payment System (EFTPS)
• Over the phone payments (direct debit if applicable)
• Making credit/debit card payments through an IRS approved payment merchant.
• Mailing a money order/check along with the letter.

3. Estimate additional payments (penalties and interest) to make sure the payment is complete.

4. If you require additional clarification, call the IRS at the number at the bottom of the letter.

Consequences Of Ignoring IRS 608C Letter:

The possible repercussions of ignoring the issue at hand can lead to:

• Further penalties for undelivered tax payments due.
• Interruptions in delivery of your Stamped Schedule 1 which is vital for the car registration process.
• IRS collections procedures incurred due to tax not paid.

Make sure that the necessary banking information for the payment is correct, and remember to keep sufficient money in the account before the payment is made to avoid other problems.

Although receiving the IRS Letter 608C may be intimidating, claiming that you take swift action ultimately enables you to tackle the payment issue and avoid future issues.

For getting assistance with Form 2290 e-filing and secure payments, you might consider hiring an IRS-approved e-file vendor to make everything easier.