IRS notice help

Got a letter from the IRS?

Here's what the most common IRS notices mean, how urgent they are, and what to do next. Find the notice number, usually in the top or bottom right corner, and jump to it below.

Don't ignore it.Most notices have a response date, and options shrink once it passes.

Note the date on the notice.Deadlines usually run from the date printed on the notice, not the day you open it.

Check that it's real.The IRS typically starts with a letter in the mail. It won't demand payment by gift card or wire transfer.

Your return doesn't match IRS records

These notices start when income reported by employers, banks, or brokers doesn't line up with your return. They aren't bills, but they do need a response.

CP2501

Request for information about your return

Respond by the deadline

What it means

The income or payments that employers, banks, or other third parties reported to the IRS don't match your return. The IRS is asking you to explain the difference before it proposes any changes. It isn't a bill or an audit.

Your deadline

Respond by the date on the notice.

What to do

Compare each item listed against your return and your records.
Complete the response form to agree or disagree, and include support for anything you dispute.

If it goes unanswered

If you don't respond, the IRS usually sends a CP2000 proposing changes to your tax.

Get help with this notice →

CP2000

Proposed changes to your tax return

Respond by the deadline

What it means

Information the IRS received from third parties doesn't match your return, and the IRS is proposing changes. The change may increase your tax, decrease it, or leave it the same. It isn't a bill, and it isn't a formal audit.

Your deadline

Usually 30 days from the date on the notice (60 days if you're outside the U.S.). You can ask for more time before the deadline.

What to do

Review every proposed change against your return and records. Third-party reporting errors are common.
Return the response form showing whether you agree, partly agree, or disagree, with documentation for anything you dispute.
Don't file an amended return as your response. It can slow things down.

If it goes unanswered

If you don't respond, or the IRS can't accept your explanation, it sends a statutory notice of deficiency. From that point you have 90 days to petition the U.S. Tax Court.

Get help with this notice →

You have a balance due

Unpaid balances move through a sequence of notices, and each one is more serious than the last. The earlier you act, the more options you have.

CP14Balance dueCP5011st reminderCP5032nd reminderCP504Intent to levyLT11 / 1058Final notice

CP14

Balance due

Act soon

What it means

The IRS processed your return or an adjustment and shows an unpaid balance, including any penalties and interest. This is the first bill in the collection process.

Your deadline

Pay within 21 days of the notice date (10 business days if the balance is $100,000 or more) to limit added interest.

What to do

Check the balance against your records, including any payments you already made.
If it's correct and you can't pay in full, ask about a short-term extension or a payment plan rather than waiting.

If it goes unanswered

If the balance isn't resolved, reminder notices follow, and the IRS can move toward collection.

Get help with this notice →

CP501 / CP503

First and second reminders of a balance due

Act soon

What it means

The IRS hasn't received payment or a response to an earlier balance due notice. The CP501 is the first reminder, and the CP503 is the second. Interest and penalties keep growing.

Your deadline

Pay or respond by the date on the notice.

What to do

Pay the balance, set up a payment plan, or contact the IRS if you believe the balance is wrong.
Act before the next notice. Options narrow as the sequence moves forward.

If it goes unanswered

If the balance stays unpaid, the next notice is usually a CP504, notice of intent to levy.

Get help with this notice →

CP504

Notice of intent to levy

Urgent

What it means

The IRS still shows an unpaid balance and is formally notifying you that it intends to levy. At this stage it can take your state tax refund, and it may also file a federal tax lien.

Your deadline

Act right away. If the amount due isn't received within 30 days of the notice date, the IRS can levy your state tax refund.

What to do

Pay the balance, or arrange a payment plan or other resolution as soon as possible.
If you dispute the balance, contact the IRS or get representation before the deadline.

If it goes unanswered

If it stays unresolved, the IRS sends a final notice of intent to levy (often an LT11 or Letter 1058), which can lead to levies on wages and bank accounts.

Get help with this notice →

LT11 / Letter 1058

Final notice of intent to levy and your right to a hearing

Act immediately

What it means

This is the IRS's final notice before it can levy wages, bank accounts, and other assets. It also tells you about your right to a Collection Due Process (CDP) hearing with the IRS Independent Office of Appeals.

Your deadline

30 days from the date on the letter to request a CDP hearing using Form 12153. A timely request generally pauses levy action while the hearing is pending.

What to do

Note the date on the letter. The 30 days start then, not when you open it.
Resolve the balance, or file Form 12153 before the deadline to protect your hearing and appeal rights.
This is a good time to get professional representation.

If it goes unanswered

After 30 days, you can still request an equivalent hearing within one year, but it doesn't stop levies and doesn't carry the same appeal rights.

Get help with this notice →

Not sure what your notice means?

As an Enrolled Agent, I can review it, explain your options, and respond to the IRS on your behalf.

Get Help With a Notice Book a Call

Sources

This page is general information, not tax or legal advice. Notices vary, so always follow the instructions and deadline on your own notice.