How to Read IRS Notices: A Guide to Every Letter the IRS Sends

The IRS sends millions of notices each year. Most are routine, but some require immediate action. Here is your guide to understanding what the IRS is telling you.

The Notice Numbering System

IRS notices use two numbering systems:

• CP notices: Computer-generated (CP14, CP501, etc.)
• LT notices: Letter notices, often more serious (LT11, LT16, etc.)

Balance Due Notices (Most Common)

CP14: You Owe a Balance

• Urgency: Low to medium
• What it means: The IRS processed your return and you owe money
• What to do: Pay, set up a payment plan, or dispute if you disagree
• Deadline: 21 days

CP501: Reminder of Balance Due

• Urgency: Medium
• What it means: You did not respond to the CP14
• What to do: Same options as CP14, but act faster

CP503: Second Reminder

• Urgency: Medium-high
• What it means: Still no response from you
• What to do: Contact the IRS or a tax professional immediately

CP504: Intent to Levy

• Urgency: HIGH
• What it means: The IRS intends to levy your state tax refund and may levy other assets
• What to do: Call the IRS or a professional immediately. This is your warning before serious collection action.

LT11 (CP90): Final Notice of Intent to Levy

• Urgency: CRITICAL
• What it means: The IRS will begin levying wages, bank accounts, and other assets in 30 days
• What to do: File a Collection Due Process hearing request within 30 days or contact a professional immediately

Audit Notices

CP75: Exam of Your Return

• Urgency: High
• What it means: The IRS is examining your return and needs documentation
• What to do: Respond with requested documents before the deadline

Letter 525: General 30-Day Letter

• Urgency: High
• What it means: The IRS proposes changes to your return
• What to do: Agree or file a formal protest within 30 days

Refund Notices

CP12: Math Error Corrected, Refund Changed

• Urgency: Low
• What it means: The IRS corrected a calculation error on your return
• What to do: Review the changes and agree or dispute

CP49: Refund Applied to Another Balance

• Urgency: Low
• What it means: Your refund was used to pay another tax year's balance
• What to do: Review for accuracy

What to Do with Any IRS Notice

1. Read it carefully: Note the notice number, tax year, and response deadline
2. Do not ignore it: Ignoring notices leads to escalating consequences
3. Keep it: Store all IRS correspondence for your records
4. Respond by the deadline: Every notice has a response deadline
5. Get help if needed: A tax professional can interpret the notice and respond on your behalf

Find Help

If you have received an IRS notice and are unsure what to do, find a tax relief expert near you for a free consultation.