IRS Letters: Understand What Your IRS Notice Means & What to Do
Nothing can make your blood run cold more than receiving a letter from the IRS. It's important to open and read any letters or notices you receive from the IRS. Ignoring correspondence from the IRS could make your tax problems worse.
There are around 75 different notices and IRS letters. It could be Letter 3228(LT39) Reminder Notice letter or it may even be the IRS sending you Notice number CP12 which outlines Changes to Tax Return, Overpayment. The IRS may send letters via regular mail or through certified mail. When the IRS sends through certified mail it can mean that the notice is in regard to a highly time-sensitive issue.
Letters from the IRS describe quite clearly 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 letter and number code 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 first page of the notice. There is also a corresponding CP number on the removable portion of the page. It helps users to retain a portion of the notice for their records. The IRS usually places the CP number in the header of the notice, at the top and 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, then this should be brought to their attention. When an error has been made and additional payment is required direct correspondence and payment can be submitted 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.
Scammers send fake IRS letters to trick people into making payments to thieves. Some marketing companies also use fake IRS letters to lure people into using their services. Before responding to an IRS letter, make sure that it's real. Learn the signs of fake letters and how to protect yourself from scams.
Different Types of Letters from the IRS & Corresponding Letter Codes
Some of the more common letters from the IRS include:
This notice is used to notify the taxpayer that the IRS is holding their tax refund because they have unfiled tax returns for a different year.
The IRS sends Notice CP11 to alert you about potential errors on your tax return. This notice also explains changes the IRS made to your return, and it details how much you owe due to the changes. Usually, the IRS only sends this notice if the changes made to your return changed your balance by at least $5.
This guide explains why you received this notice and how to respond to it.
This is generally the first notice that is sent after taxes are filed and there is still an outstanding balance.
CP14IA — Installment Agreement Accounts (new notice)
The IRS sends this notice instead of the CP14 to taxpayers who are trying to set up installment agreements on their tax liabilities.
The IRS sends notice CP40 when they have assigned your tax account to a private collection agency. This notice outlines your payment options. Here are details of what to know about this notice and actions you should take.
The IRS sends notice CP49 when the agency seizes some or all of your tax refund to cover unpaid taxes. The letter should explain how much of the refund the IRS took. If there is any remaining amount, the agency will send you the balance.
This IRS sends Notice CP71, Notice CP71C, and other notices in the CP71 series as an annual reminder of your tax balance due. These notices are auto-generated. They generally don't threaten collection actions against you.
This notice means that the IRS is seeking additional information about some of the details on your tax return. Most of the time it is related to the Earned Income Tax Credit (EITC) and is requesting proof related to it. This notice can also be requesting more information about the American Opportunity Tax Credit (AOTC), the Premium Tax Credit (PTC), or the Child and Dependent Care Tax Credit.
The IRS sends this notice to taxpayers after it assigns their account to a private collection agency. This notice is very similar to the CP40, and it contains a code that you should use to verify the collection agency when you talk with them.
The IRS is sending CP162 to S-corps and partnerships to assess penalties. These penalties can be very significant, so it's important to respond if you receive this notice. This guide will give you details on what this notice relates to, actions to take, and how to respond.
The IRS sends this notice to businesses that have been assessed a civil penalty for not filing an information return.
The IRS sends this notice when it makes changes to your tax return. For example, if the IRS makes charges to your 941 employer payroll return, you may receive one of these notices.
This is the first or second notice that you will receive from the IRS if you have an overdue account.
If you have not paid the balance of your account you will receive a second notice.
If the amount is not paid in full this is the 3rd and final notice before the IRS gets serious and starts searching for assets to levy. This is an intent to levy notice.
This is a notice that the IRS often sends to business taxpayers. It says that the IRS will levy your assets if you don't pay your taxes in full or make other arrangements by the date on the notice.
This is the notice that the IRS sends prior to terminating your installment agreement with the IRS. 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.
This IRS letter is a notification that a levy will be put against assets and any retirement benefits, salaries, real estate, automobiles, bank accounts, etc can also be included in the levy.
This notice is similar to the CP 90, but it is sent to your business. This is a notification that due to unpaid taxes, the IRS intends to levy assets if no actions are taken.
The IRS has likely made numerous attempts to collect by the time the taxpayer receives this notice. If no action is taken within 30 days, the IRS has the right to levy or seize assets. This is also an intent to levy notice.
The IRS hasn’t received any payment for overdue taxes and they intend to seize assets if no action is taken. The IRS may also place a lien on your property.
LT16 – Please Call Us About Your Overdue Taxes or Tax Return (recently redesigned)
The IRS is trying to collect unpaid taxes from you or has not received a tax return due.
LT17 — Take Action on Your Balance Due With Our Online Services (recently redesigned)
The IRS wants you to take action on your balance due.
LT19 — Pay Your Outstanding Tax Returns (recently redesigned)
The IRS may take action if you don't make arrangements on your outstanding tax liability.
The IRS is sending out this notice to alert taxpayers that the agency plans to resume sending out collection notices. The agency plans to send this notice to taxpayers with unpaid 2020 and 2021 taxes as well as unpaid taxes from previous years. The agency stopped sending many notices during the COVID-19 pandemic, and because the agency wasn't sending out notices, it has decided to give taxpayers over $1 billion in automatic penalty relief for tax years 2020 and 2021. The IRS started sending this notice in early 2024 to let taxpayers know that collection actions are resuming.
IRS Letter 4464C means that the IRS is reviewing your tax return. If you are due a refund, the agency is holding your refund pending review of your tax return. This letter does not mean that the IRS is auditing your return. Reviews typically take up to 60 days.
The IRS sends Letter 4800C if the agency makes changes to your tax return. For example, if the IRS disallows a credit on your tax return, the agency will send you this letter. It will show what was changed. Then, it will detail how much you owe or if the agency reduced your tax refund.
The IRS sends this letter to businesses that haven't filed Forms 9094/9095-C. This letter explains what forms you need to file, and it outlines the penalties for not filing these forms or providing them to your employees. Learn what to do if you receive Letter 5699.
The IRS has recalculated your tax return due to changes initiated by you, and due to the changes, you owe additional tax or have a reduced refund.
Based on the information you provided the IRS, your tax return was changed, and you now owe money.
Understand what the IRS notice of deficiency means. Should you sign the form 5564 that is attached to agree to the new assessment? Know what to do if you do not agree with the notice and what to do if you cannot pay the balance that is now due.
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.
The IRS will send this letter when their records don’t match what you reported on your tax return. The letter will contain IRS 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 agents send letter 725-B to request meetings with taxpayers. As of July 2023, IRS agents no longer pay unannounced visits to taxpayers' homes or businesses. Instead, if a revenue agent wants to meet with you, they will send you this letter, and then, you will contact them to set up a meeting.
The IRS sends this letter to individuals about the Trust Fund Recovery Penalty. Typically, the IRS sends this letter when a business has refused to pay the payroll taxes, and the IRS has decided to hold you responsible for the taxes owed. Form 2751 is an enclosed form agreeing to the assessed amount.
If the IRS believes you haven't filed your returns, they may send you this form and ask you to complete it. They may send another notice notifying you of unfiled returns and request you complete this form as well. Your response to this notice depends upon your situation. Look at the various scenarios, how to respond, and when to consider hiring a tax professional to help.
The IRS has a variety of letters that it sends for audits. There are a few different types of notifications the IRS will send depending upon how the IRS is planning on auditing your tax return. These are the details on a few of the common IRS audit letters.
IRS Stop 6525 (SP CIS) Meaning
If a taxpayer receives an IRS Letter "Stop 6525 (SP CIS)," he or she may have received the letter for a variety of reasons. There should be a CP number in the upper right corner of the IRS notice or letter. For example, it may be CP49, which means that the IRS took a refund you were due for a specific year and credited it to a year you had an outstanding balance. If you have any questions about why you received the letter or what you need to do next, you can call the number on the notice or letter. An IRS customer service representative will help you.
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