Most IRS letters are routine, but some start clocks that, once missed, permanently limit your rights. The notice number usually appears in the top or bottom right corner of the letter. Here is what the most common ones mean.
1. First, confirm it is really from the IRS
The IRS generally makes first contact by mail, not by phone call, email, text, or social media. It does not demand immediate payment by gift card or wire transfer. If you are unsure, look up the notice number on irs.gov or call the IRS using the number listed on irs.gov, not one provided by the caller.
2. Balance-due notices (CP14, CP501, CP503)
These letters say you owe tax, penalties, or interest. A CP14 is usually the first notice, and CP501 and CP503 are follow-up reminders. They are not yet enforcement, but the balance grows with penalties and interest. Check whether the amount is correct, then pay or arrange a payment plan.
3. Proposed changes to your return (CP2000)
A CP2000 means income or payment information reported to the IRS, such as a W-2 or 1099, does not match your return. It is a proposal, not a bill. You can agree or disagree, and you should respond by the deadline in the letter with an explanation and any supporting documents.
4. Audit letters
Some letters notify you that your return has been selected for examination, either by mail or in person. They list the items under review and the documents the IRS wants. Respond on time and consider representation, especially if the IRS requests an interview.
5. Notice of Deficiency (the 90-day letter)
A Statutory Notice of Deficiency says the IRS intends to assess additional tax. It is your ticket to the U.S. Tax Court: you generally have 90 days (150 days if addressed outside the United States) to file a petition and contest the tax before paying it. This deadline cannot be extended.
6. Final notice before levy (CP504, LT11, Letter 1058)
A CP504 warns that the IRS intends to levy, for example on a state tax refund. A Final Notice of Intent to Levy and Notice of Your Right to a Hearing (often LT11 or Letter 1058) gives you 30 days to request a Collection Due Process hearing. That hearing lets you propose alternatives such as a payment plan or offer, and preserves Tax Court review.
What to do when an IRS letter arrives
- Open it right away and write down every deadline it lists.
- Keep the envelope and the letter; the mailing date can matter.
- Compare it to your return and records before responding.
- Respond in writing when asked, and keep copies and proof of mailing.
- Get advice before the deadline on a Notice of Deficiency or final notice of intent to levy.
Get help from someone who has seen it from the inside
Bernie McCarthy spent 17 years with the IRS and knows what each notice means for your options. He can review your letter, explain your rights and deadlines, and respond to the IRS on your behalf. Learn more about our irs collections services.
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This article provides general information, not legal advice for your situation.