IRS Certified Mail: Is a Certified Letter Always Bad News?

The IRS sends letters through certified mail when it needs to reach you about an important tax matter. Often, a certified letter means the IRS wants to meet with you to get more information about a tax return or tax debt, but the agency also uses certified letters to warn taxpayers about collection actions. Sending the notice through certified mail allows the IRS to ensure it was delivered.

In reality, the IRS sends certified letters for many reasons. That letter could be an audit letter, but it could also be a letter asking for identity verification before the IRS releases a tax refund. Review these common reasons for receiving IRS certified mail.

Key Takeaways

• The IRS uses certified mail to ensure certain letters reach taxpayers. 
• Certified mail from the IRS isn't always bad, but it's always serious.
• The IRS sends certified letters about audits and when requesting information from taxpayers. 
• The agency uses certified letters to warn taxpayers about wage garnishments and asset seizures for unpaid taxes.
• If the IRS is summoning information from you, they may contact you with a certified letter.
• Even though you're receiving a certified letter, you still have options to resolve the situation, but you should act quickly. 

What is IRS Certified Mail?

The IRS relies on the U.S. Postal Service to deliver mail to millions of Americans. Unfortunately, the mail isn’t always delivered, and sometimes it’s particularly time-sensitive and important. If problems aren’t addressed, the IRS will resort to sending certified letters.

IRS certified mail has these specific characteristics:

• Mailing receipt: Certified mail comes with a mailing receipt for the sender, in this case, the IRS. This mailing receipt is the first step in a tracking system that ensures delivery to the intended recipient.
• Signature requirement: A certified letter isn’t left in someone’s mailbox. It requires a signature as a record of delivery and will be returned if not accepted by the intended recipient.
• Electronic delivery: The final component of IRS-certified mail is electronic delivery tracking. The sender can review the delivery information online or over the phone.

What does it mean when you get a certified letter from the IRS? Certified letters are generally a last resort for the IRS. That means that, once someone starts receiving IRS certified mail, the IRS will be expecting a response within a reasonable amount of time. Failure to respond could result in serious consequences. 

Letters the IRS sends through certified mail

The IRS often sends the following letters through certified mail. If you receive any of these notices through regular or certified mail, you should reach out to a tax professional to help you, or you should contact the IRS and try to make arrangements for your tax debt on your own. 

• Notice 3219 (Statutory Notice of Deficiency) - The IRS has filed a substitute for return for a year that you didn't file, and if you don't respond in 90 days, you will owe the amount shown on this notice. 
• Letter 1058, CP77, CP90 or LT11 (Final Notice of Intent to Levy) - The IRS will start seizing your assets, freezing your bank account, or garnishing your wages if you don't respond to this notice within 30 days of the date it was mailed.
• CP91 (Social Security benefits Garnishment) - Due to your unpaid taxes, the IRS is going to seize a portion of your Social Security benefits unless you respond by the deadline. 
• Letter 3172 (Notice of Federal Tax Lien Filing) - Tax liens attach to all of your assets, and if you owe more than $10,000, the IRS will likely file a tax lien. Although the agency doesn't need to notify you before filing the lien, it often sends this letter to taxpayers. 
• Letter 1153 - Proposed Trust Fund Recovery Penalty Assessment - This letter means that the IRS thinks you're responsible for unpaid payroll tax, and it's assessing a trust fund recovery penalty of 100% of the tax against you. 
• CP508C (Notice of Certification of Seriously Delinquent Tax Debt to the State Department) - If you owe a lot of taxes and haven't made arrangements to pay, the IRS can tell the State Department to take away your passport. As of 2024, this happens when you owe $62,000 or above, but the number increases with inflation annually.
• CP523 (Notice to Terminate Installment Agreement) - If you default on your installment agreement, the IRS will send you this letter advising you about the situation and letting you know that they are now going to pursue collection actions against you.

The IRS may also send the following through certified mail: CP92, CP177, CP242, CP297, CP297A, CP297C, LT75, Letter 105C, LT 525, LT 531, LT 1058, LT2439, LT3174, LT4066, and LT4554. As you can see, all of the above notices have one thing in common - they are extremely important. If you get certified mail from the IRS, don't ignore it. Don't throw it away. Open it right away, or call a tax professional and have them handle it for you. 

Is certified mail from the IRS always bad?

Certified mail from the IRS is always serious, and it's often bad news. The agency uses certified mail when it needs more information from taxpayers, but it also uses certified mail to warn taxpayers about collection actions such as taking their passports away, filing federal tax liens, garnishing wages, or seizing assets.

10 Valid Types of IRS Certified Mail and Notices

There are many reasons the IRS might reach out to someone, but the most common reasons are related to outstanding balances and requests for more information. However, there are a few valid reasons someone might receive IRS certified mail.

1. Outstanding Balance

An unpaid tax balance is one frequent reason the IRS sends certified mail. The IRS sends standard mail when the collection process begins, but the process will escalate if the notices are ignored. The demand letter will include information on how to resolve the taxes owed with options like an offer in compromise or an installment agreement.

It’s important to contact the IRS immediately after receiving certified letters with a payment demand. This balance continues to accrue interest and penalties, and it will ultimately lead to a Notice of Federal Tax Lien, wage garnishment, bank levy, or some other type of forced collection actions.

2. Refund Discrepancy

Not all news from the IRS is bad news. Individuals and businesses that are expecting a tax refund can expect IRS-certified mail if there is a discrepancy in the return. This discrepancy could be a smaller or larger refund than anticipated, though it’s important to compare any new refund amounts with the original tax return.

Even if a certified letter is informing someone of a refund discrepancy, it’s important to read through the entire notice for any pertinent information. There may be additional steps to take to ensure the refund is processed.

3. Return Questions

Occasionally the IRS has questions about a tax return. If the questions aren’t time-sensitive or critical to processing a return, the IRS will send the request for information through standard mail. However, more critical requests will be sent as certified letters. The IRS will typically include any forms that need to be filled out, as well.

Common questions about tax returns include clarification about sources of income, discrepancies in the mailing address on file, and verification of tax credits and deductions. Delays in answering these questions will delay the refund process.

4. Identity Verification

The IRS takes identity protection seriously and will send certified letters when they need to verify someone’s information. This letter will include instructions on how to complete the identity verification process, and it will require valid forms of identification like the account numbers from a credit card or student loans.

There are other requirements to verify identity as well, such as a mobile phone number, income tax returns, filing status, and either a 5071C, 5747C, or 5447C letter. This process is usually time-sensitive and could delay refunds if not completed quickly.

5. Information Needed

Sometimes the IRS needs more information to process a tax return. There could be missing Form W-2 information or a mismatch in the employer information the IRS has on file. If the information is critical, the IRS will include directions for returning the requested information easily. This might be over the phone or through an online portal.

In some cases, taxpayers might receive an IRS audit letter. This certified letter will include directions for returning supporting documents and updating any other information. It will have a deadline too, so pay close attention to the dates.

6. Return Amendments

While not a formal audit, the IRS does occasionally need to make changes to a filed tax return. In these cases, the IRS will send a CP2000 letter. This letter will outline the changes and include directions for agreeing to or disputing the revisions. Supporting documentation might be necessary for anyone that disagrees with the changes.

These changes to a tax return are generally time-sensitive but they don’t require an amended return. The changes are critical to processing the return, so any delay in responding to the notice could further delay a tax refund.

7. Processing Delays

Processing delays are another reason the IRS sends certified mail. While they don’t send notices for general delays that impact everyone, they do send certified letters to people that are expecting a tax refund but could potentially owe other federal taxes. This notice is called the CP44 notice and it, unfortunately, doesn’t come with instructions.

IRS-certified mail for processing delays like this is a courtesy notification. Detailed information will follow once the IRS has determined whether the refund will be applied to a past-due tax balance or sent to the recipient.

8. To Make Sure You're Getting Notices

If the IRS has sent you multiple notices about unpaid taxes and you haven't responded, the agency will often send a certified letter. If you no longer live at the address, the certified letter will go back to the IRS as undeliverable, and thus, the IRS will know that you are no longer at that address. However, if you receive the letter, the IRS will know that they have been sending correspondence to the correct address, and at that point, they may call you or initiate more severe collection actions to get your attention. 

9. To Warn You About Collection Actions

The IRS may use certified letters to notify taxpayers about certain collection actions. However, it's important to note that sometimes levy notices or notices about your rights to appeals hearings are not sent by certified mail. 

10. Summons

The IRS may use certified mail when it is summoning information from a taxpayer or from a third party about a taxpayer. However, summons can also be hand delivered, sent through registered mail, or potentially delivered another way. Regardless of how the letter comes, you should never ignore an IRS summons. 

Practical Tips for Handling IRS Certified Mail

It can be intimidating to receive IRS-certified mail. It’s not uncommon for people to put the letter aside without reading it so they can deal with the problem later. This can lead to anxiety over the contents of the letter.

Instead of letting anxiety fester, follow these practical tips for dealing with IRS notices, but first, examine the letter carefully to make sure it's really from the IRS and not a scammer:

• Read the entire letter carefully: Letters from the IRS include the type of and reason for the notice, detailed instructions on the next steps, and the most appropriate method of contact.
• Make note of important deadlines: If the IRS wants forms completed or supporting documentation, the certified letter will have a deadline and instructions for returning the information.
• Establish contact to prevent collections: Individuals with outstanding tax balances should establish contact with the IRS to prevent collection activities like additional letters and phone calls.
• Hire a Certified Tax Resolution Specialist: Some people have taxes owed that is almost unmanageable without professional help from certified tax experts.

The most important tip for handling IRS-certified mail is simply not to ignore it. Ignoring certified notices can lead to federal and state liens as well as the potential for wage garnishments.

Find a Tax Relief Solution & Getting Help Through TaxCure

Outstanding taxes can lead to significant financial consequences, such as the potential for levies and tax liens. Individuals and families that find themselves receiving IRS-certified mail for their tax liabilities should reach out to a licensed tax professional with IRS experience. Even though you are receiving a certified letter, you still have options. Depending on the situation, you may be able to set up payments or make other arrangements that prevent the IRS from seizing your assets. If you've received a letter about an audit or a document request, a tax professional can help you deal with the IRS. 

Tax relief solutions can help alleviate financial burdens that hold people back. A Tax Resolution Specialist has the skills and experience to negotiate the best settlement offers for any situation. Start your search for a tax professional below. Our network of tax professionals is made up of pros from around the country with a wide array of experience. At Taxcure, we have developed a unique ranking algorithm for professionals based upon a variety of factors to help taxpayers easily find a professional who is best equipped to help resolve their tax problems. Start below by selecting the agency you have a problem with and then use the filters to select your particular problem/problems to see the professionals with the most experience in those areas.