Got a letter from the IRS? Find out what it means.

Received an IRS notice?

IRS notices are letters or documents sent by the IRS to inform you of tax-related issues, such as unpaid balances, filing errors, audits, or impending collection actions. They range from simple reminders to urgent warnings, requiring careful review and timely action to avoid penalties or escalated measures.

Why are IRS notices a concern?

Ignoring or mishandling IRS notices can lead to serious consequences:

• Penalties and interest accrue on unpaid taxes or late filings.
• The IRS may escalate to collections, including wage garnishments, bank levies, or property liens.
• Errors in responding can delay resolution or increase your liability.
• Failure to act within deadlines can result in audits or legal action.

Prompt and accurate responses are essential to address the underlying issue and prevent further complications.

Common types of IRS notices

IRS notices vary, but some frequent types include:

• CP14: You have a balance due
• CP501: Reminder: you still have a balance
• CP504: Notice of intent to levy
• CP2000: Your income doesn’t match IRS records
• LT11 / 1058: Final notice of intent to levy
• CP90: Final notice, including Social Security
• CP3219A: Notice of deficiency (90-day letter)

Each notice has its own deadline and requirements. Don’t see yours? Look it up in our notice finder or book a free consultation and we’ll tell you what it means.

Options for responding to IRS notices

You can address IRS notices in several ways:

• Do it yourselfReview the notice, gather financial records, and respond directly to the IRS, meeting deadlines and providing requested documentation. This requires understanding the notice type, IRS criteria, and proper forms. Errors or delays can worsen the situation or lead to penalties.
• Work with the IRS directlyContact the IRS by phone or mail, supplying details to clarify or resolve the issue. This demands precise preparation and knowledge of IRS policies, which can be challenging without expertise.
• Hire a tax professional (recommended)A professional is the best way to respond to IRS notices. They analyze the notice, submit accurate responses or forms, and negotiate with the IRS to resolve the issue. If your tax issue involves penalties, back taxes, or collections, a professional can also explore programs like payment plans or settlements to address the root cause.