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IRS Letters | +1 (808) 202-2274
Understand What Your IRS Notice Means & What to Do
Nothing can make your blood run cold more than receiving a letter from the IRS. There are about 75 different IRS notices and letters. It could be Letter 3228 (LT39), a Reminder Notice letter, or it could be Notice CP12, which outlines Changes to a tax return or an overpayment. The IRS may send letters via regular mail or through certified mail. When the IRS sends a notice by certified mail, it may mean the issue is highly time-sensitive. IRS letters clearly explain why they are contacting the taxpayer and include guidance on how to handle the issue. The IRS usually sends out letters or notices if:
- There was an error or omission on your tax return, and additional tax payment is required
- There was an error, and you are owed a greater refund
- The IRS requires additional information regarding your tax return
How to Identify the Letter from the IRS
The IRS assigns a number to every notice that leaves their office. It helps IRS employees track correspondence from thousands of citizens. Some notices come with a CP designation. The IRS prints the CP (Computer Paragraph) at the top of the notice's first page. A corresponding CP number also appears on the removable portion of the page. This helps users keep a portion of the notice for their records. The IRS usually places the CP number in the notice header, at the top center of the page.
What to Do if You Receive a Letter from the IRS
Most letters from the IRS contain specific instructions to help complete your tax return. Each notice or letter will require some action on your part. After reviewing mail from the IRS, it is essential to compare the information received from the IRS to the information that you provided to them during the period in question. If there is a discrepancy, bring it to their attention. If you made an error and need to make an additional payment, you can send correspondence and payment directly to the address on the notice. When submitting any information to the IRS or to any company for that matter, it is good practice to keep copies for your own records.
Some of the more common letters from the IRS include:
CP 88 - Delinquent and Return Refund Hold
This notice notifies the taxpayer that the IRS is holding their tax refund because they have unfiled tax returns for a different year.
This is generally the first notice that is sent after taxes are filed, and there is still an outstanding balance.
CP 501 - Reminder Notice - Balance Due
This is the first or second notice that you will receive from the IRS if you have an overdue account.
CP 503 - Second Request - Balance Due
If you have not paid the balance of your account, you will receive a second notice.
CP 504 Final Notice & IRS Intent to Levy - Balance Due
If you do not pay the amount in full, this is the 3rd and final notice before the IRS gets serious and starts searching for assets to levy.
CP 523 - Intent to Terminate Your Installment Agreement & Seize Your Assets
This is the notice the IRS sends before terminating your installment agreement. If no action is taken, the IRS may levy your wages, garnish your bank account, or seize other assets. Understand the details of this notice and what actions can be taken to fix the problem.
CP 90 - Intent to Seize Assets and Notice of Your Right to a Hearing
This IRS letter notifies you that a levy will be placed on your assets, and it may include retirement benefits, salaries, real estate, automobiles, bank accounts, etc.
CP 297 - Intent to Seize Assets and Notice of Your Right to Hearing
This notice is similar to the CP 90, but it is sent to your business. This notice states that, because of unpaid taxes, the IRS intends to levy.
LT 1058 - Final Notice of Intent to Levy and Notice of Your Right to Hearing
The IRS has likely made numerous attempts to collect by the time the taxpayer receives this notice. If you take no action within 30 days, the IRS may levy or seize assets.
LT 11 – Intent to Seize Your Property or Rights to Property
The IRS hasn’t received payment for overdue taxes and intends to seize assets if you take no action. The IRS may also place a lien on your property.
CP 22A – Notice of Change(s) to Your Tax Return
Based on the information you provided the IRS, your tax return was changed, and you now owe money.
CP 3219A & Form 5564 – IRS Notice of Deficiency
Understand what the IRS notice of deficiency means. Should you sign the attached Form 5564 to agree to the new assessment? Know what to do if you disagree with the notice and what to do if you cannot pay the balance now due.
CP 508c – Possible Revocation or Denial of Passport
This letter will be sent to taxpayers starting in January 2018 if the IRS has determined that their account is “seriously delinquent”. The IRS has provided that information to the State Department. Generally, the State Department will not renew your passport or issue a new passport after receiving this certification. They may also revoke or place limitations on your current passport.
CP 2000 – Notice of Underreported Income
The IRS will send this letter when their records don’t match what you reported on your tax return. The letter will include the IRS's proposed changes. It is not an audit. If you agree with the proposed changes or disagree, mark the response form accordingly and send it back to the IRS. Read more about this letter and what to do by utilizing the link above.
IRS Letter 1153 & Form 2751: Proposed Assessment of the Trust Fund Recovery Penalty
The IRS sends this letter to individuals about the Trust Fund Recovery Penalty. Typically, the IRS sends this letter when a business refuses to pay payroll taxes and the IRS decides to hold you responsible for the debt. Form 2751 is enclosed and is the form you use to agree to the assessed amount.
Mariya Pankratova is an IRS-Approved Enrolled Agent and Volunteer.
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