IRS Letter 906
Closing Agreement
IRS Letter 906 is a formal document outlining a Closing Agreement between you and the IRS. It’s used to resolve a specific tax issue or dispute and once signed, it becomes legally binding for both parties.
This agreement is final and can’t be appealed, amended, or reopened later (except in rare cases involving fraud or misrepresentation). If you’re considering signing a Closing Agreement, it’s crucial to fully understand its long-term consequences.
▸ Why Did I Receive IRS Letter 906?
You may have received Letter 906 because:
You were involved in an IRS audit or tax dispute, and the IRS is offering to settle
You proposed or the IRS initiated a negotiated resolution of a tax liability
You’re agreeing to a specific treatment of an item in return for closure
You’re involved in a case involving repeated audits, complex issues, or potential litigation
▸ What’s in the 906 Agreement?
The agreement typically includes:
A detailed explanation of the tax years and issues covered
The amount of tax, penalties, or interest agreed upon
A statement that both parties waive further appeals or litigation on the matter
Instructions on how to sign and return the agreement
▸ What Should You Do?
Review the agreement carefully. It is a binding legal contract.
Consult a tax attorney before signing anything.
Confirm that the agreed terms are accurate and clearly stated.
Sign and return the form if you agree to the terms — and retain a copy for your records.
- Remember: Once signed, you cannot go back and challenge the same issue, even if you later find new information.
▸ When to Call a Tax Attorney
You should always consult a tax attorney before signing a Closing Agreement. We can help you:
Understand the legal and financial implications
Review whether the terms are in your best interest
Negotiate changes or additional protections, if needed
Ensure that signing the agreement doesn’t expose you to other unresolved issues
▸ Final Doesn’t Have to Mean Risky
Don’t sign away your rights without a second opinion.
Call Scammahorn Law Firm at(903) 595-1000 or fill out this quick form to schedule a consultation and respond with confidence.