IRS Notices

IRS Notices: What They Mean and How to Respond

As Enrolled Agents, we see firsthand the anxiety that a government envelope can create. Notices and letters are how the IRS communicates with taxpayers about account issues, and understanding them is the first step toward resolution. This blog explains why you might receive a notice, what common notices mean and how to respond so that problems don’t spiral into enforcement actions.

Why the IRS Sends Notices

The IRS mails notices for several reasons. According to the IRS’s general guidance, a notice may be triggered if you have a balance due, your refund amount has changed, the agency has a question about your return, needs to verify your identity, has made corrections to your return or is delayed in processing. Each notice includes a unique CP or LTR number—usually in the top right corner—that tells you what type of issue it addresses.

General Steps to Take
  • Read the notice carefully. The IRS advises reviewing the notice and keeping it for your records. If you agree with the notice and it asks you to take action—such as paying a balance due—do so by the stated deadline.
  • Respond promptly if you disagree. If you think the notice is incorrect, follow the instructions to dispute it. Send supporting documents and respond by the due date to preserve your appeal rights.
  • Pay what you can. Even if you can’t pay the full amount, paying by the due date reduces penalty and interest chargesirs.gov. You may be able to set up an installment agreement or other payment plan.
  • Watch for scams. The IRS cautions taxpayers to verify suspicious letters. If a notice doesn’t match the number on IRS.gov or appears suspicious, call 800‑829‑1040 for assistance.
  • Choose paperless or accessible notices if needed. Many notices can be delivered electronically via your IRS online account, and you can request Braille or audio versions by filing Form 9000.
Example: CP59 Notice (Missing Return)

A CP59 notice means the IRS has no record of your prior‑year personal returnirs.gov. To resolve it, file your return immediately or explain why you don’t need to file. If you received an Identity Protection PIN, include it on the returnirs.gov. Failure to file can result in losing your refund or certain credits, and penalties and interest will continue to accrue until you file and pay. If you owe taxes, you can explore payment plans or installment agreements.

Example: LT16 Notice (Collection of Unpaid Taxes)

An LT16 notice is a collections letter indicating that the IRS is trying to collect unpaid taxes or that returns are missingirs.gov. Ignoring it could lead to enforcement actions such as levies or a notice of federal tax lien, which may affect your credit. To avoid enforcement:


  • Follow the instructions on the notice. Read it carefully and respond as directed.
  • File missing tax returns. If the notice shows missing returns, submit them right away.
  • Pay your balance or set up a payment plan. Paying in full stops the accrual of penalties and interest. If you can’t pay, the IRS recommends paying as much as you can and requesting an installment agreement.
  • Consider your appeal and hardship options. You have the right to appeal if you dispute the tax, and the Office of Appeals will hear your case. If you cannot pay because of financial hardship, the IRS may classify your account as “currently not collectible,” delaying collectionirs.gov. In some cases you may qualify for an offer in compromise, settling your debt for less than the full amount.


Tips for Handling Any IRS Notice


Stay organized. Keep copies of notices, your responses and any documentation you send.

Use IRS online tools. You can search for notice numbers on IRS.gov to find specific instructions, and many issues can be resolved through an online account or by using the online payment agreement application.

Seek help if needed. Low‑income taxpayers may qualify for free assistance through the Taxpayer Advocate Service or a Low Income Taxpayer Clinic. You can also authorize a representative to speak with the IRS on your behalf.

Receiving an IRS notice doesn’t have to be frightening. By reading the letter carefully, acting promptly and contacting the IRS when you need help, you can resolve most issues before they lead to enforced collection. Remember, the IRS wants to work with you to bring your account into compliance.

Common IRS Notices

Below is a brief overview of some of the most frequently issued IRS notices and letters. Each begins with a code (CP or LTR) and is numbered for easy reference. Always read your specific notice for details, but this list provides a general idea of what to expect and how to respond:

Notice
What It Means
What to Do
CP14 — Balance Due  Notice

This is generally the first bill the IRS sends if you have unpaid tax. The notice explains how much you owe and when the payment is due. It also offers options to pay online, set up a payment plan or contact the IRS

if you disagree.

Pay the full amount by the due date to avoid interest and penalties. If you can’t pay in full, apply for a payment plan and contact the IRS if you need more time or dispute the balance.

CP501 — First Reminder of Balance Due

A CP501 notice reminds you that a balance remains on your account after an earlier bill. It details the amount owed, the due date and your payment options. The notice warns that failure to pay can result in a federal tax lien and that

interest and penalties will continue to accrue.

Review the notice, pay what you owe or request an installment agreement. If you disagree with the amount, call the number on the notice by the due date.

CP503 — Second Reminder of Balance Due

If you ignore a CP501, the IRS sends a CP503. This second reminder reiterates that you still owe tax and haven’t responded to earlier notices. It warns that the IRS may file a Notice of Federal Tax Lien if you continue

not to respond.

Pay the balance immediately or set up a payment plan. Call the IRS if you disagree or have already resolved the issue.

CP504 — Notice of Intent to Levy

CP504 is a final notice stating that the IRS intends to levy wages, bank accounts or state tax refunds if you don’t pay your overdue tax. It may also warn that the IRS will file a federal tax lien.

Read the notice and act by the deadline. Pay the full amount owed, arrange a payment plan or file an appeal if you disagree. Ignoring CP504 can lead to wage

garnishment, bank levies and other enforcement actions.

CP2000 — Proposed Changes to Your Return

When third‑party information (for example, from banks or employers) doesn’t match your tax return, the IRS issues a CP2000 proposing changes. It is not an audit but asks whether you agree with the proposed adjustment.

If you don’t respond, the IRS may send a statutory notice of deficiency (CP3219A).

Review the proposed changes and respond by the date on the notice. If you agree, follow the payment instructions or await a revised refund. If you disagree, provide documentation to support your position.

CP12 — Refund Adjusted or Corrected

The IRS sends a CP12 notice when it corrects mistakes on your return. and your refund amount changes or a refund is created when you expected to owe. The notice explains what was changed and how it affects your refund.

If you agree with the change, no response is required and your revised refund should arrive in 4–6 weeks. If you disagree, contact the IRS by the date shown on the notice to request reversal.

CP22A — Return Adjusted, Balance Due

A CP22A notice notifies you that the IRS made changes to your tax return (often based on information you provided) and that you now owe additional tax. The notice lists the amount due and explains why the change was made.

Pay the balance by the date on the notice to avoid additional interest and penalties. If you cannot pay, explore payment options like an installment agreement, temporary collection delay or offer in compromise. Contact the IRS if you disagree with the changes.

CP59 — Missing Return

The IRS issues CP59 when it has no record of your prior‑year return. Failing to file can cause penalties, interest and loss of refunds or credits.

File the missing return immediately or explain why you are not required to file. Include any Identity Protection PIN if one was issued. If tax is owed, consider

payment arrangements.

CP90 (and LTR 297)

A CP90 (also issued as Letter 297) is a Final Notice of Intent to Levy and Notice of Your Right to a Hearing. It tells you that the IRS plans to seize assets if you don’t resolve the debt. The notice explains your appeal rights through a Collection Due Process hearing.

Read the notice and act quickly. Pay the tax, request a payment plan or contact the IRS to arrange another resolution. You can request a Collection Due Process

hearing using Form 12153. Ignoring a CP90 can lead to levy of wages, bank accounts or other property.

LT16 (Letter 1058) — Serious Collection Notice

This letter states that you have unpaid taxes or missing returns and warns of possible enforcement actions like levies or liens.

File any missing returns, pay your balance in full or set up an installment agreement. Contact the IRS immediately if you need to discuss hardship options or appeal rights.