Receiving an IRS notice can be intimidating, whether you’re an individual taxpayer or a business owner. However, not all IRS letters indicate trouble. Many are simply informational, while others may require immediate action to avoid further penalties or enforcement.
In this guide, we’ll explore the most common IRS notices, what they mean, and—most importantly—what to do when you get an IRS letter. If you’re unsure or facing complex issues, consulting a tax lawyer for IRS notices can help protect your rights and resolve the matter efficiently.
Why the IRS Sends Notices
The IRS issues millions of notices each year, covering a wide range of tax matters, such as:
- Discrepancies in reported income
- IRS balance due notices
- Return processing delays
- Missing documentation
- IRS audit notifications
- Final notices of intent to levy
1. CP2000 – Proposed Changes to Your Return
The IRS CP2000 notice is sent when your reported income doesn’t match what the IRS has on file from third-party sources such as employers, banks, or brokerages.
What to do:
- Compare the IRS information with your records.
- If you agree with the proposed changes, sign and return the form with payment.
- If you disagree, provide documentation to support your position.
- Seek help from a tax lawyer for IRS notices if you need assistance disputing the notice.
2. CP14 – Balance Due Notice
The IRS CP14 notice is the first notification that you owe taxes. It outlines your tax liability, including interest and penalties.
What to do:
- Pay the amount due via IRS.gov if possible.
- Apply for a payment plan or consult a tax resolution lawyer to explore relief programs.
- Respond within 21 days to avoid additional enforcement actions.
3. CP503 and CP504 – Unpaid Tax Reminders
The IRS CP503 and IRS CP504 notices follow the CP14 if you fail to respond. These IRS collection letters warn that enforcement actions may begin soon.
- CP503 is a second reminder with more urgency.
- CP504 is a levy notice that states the IRS may seize property or income if payment isn’t made.
What to do:
- Contact the IRS or your tax attorney immediately.
- Don’t ignore a CP504—it’s a critical IRS final notice before levy.
4. Letter 1058 / LT11 – Final Notice of Intent to Levy
This is the most serious IRS levy notice and signals the IRS is ready to seize your bank account, wages, or property.
What to do:
- You have 30 days to request a Collection Due Process hearing.
- Contact a tax attorney experienced in IRS collections to stop the levy.
5. CP90 – Levy on Federal Benefits
The IRS CP90 notice often targets Social Security benefits or other federal payments, warning that the IRS intends to levy these sources to satisfy unpaid tax debt.
What to do:
- Respond within 30 days to avoid enforcement.
- Consult a tax collections attorney for help requesting hardship status or setting up an alternative resolution.
6. Letter 1153 – Trust Fund Recovery Penalty
The Letter 1153 notifies you of the IRS’s intention to assess the Trust Fund Recovery Penalty (TFRP), holding you personally liable for a business’s unpaid payroll taxes.
What to do:
- Appeal within 60 days.
- Work with a business tax controversy lawyer to avoid personal liability and defend your role in the company.
7. CP3219A – Statutory Notice of Deficiency
The CP3219A lets you know the IRS plans to assess additional tax. You have 90 days to file a petition with the U.S. Tax Court.
What to do:
- Do not ignore. This is your last chance to dispute the amount before assessment.
- Consult a tax attorney to prepare your petition or settlement options.
8. Letter 4883C – Identity Verification Request
This letter is issued when the IRS suspects fraudulent activity and wants to verify your identity.
What to do:
- Call the number on the notice or visit IRS.gov to complete verification.
- Have your previous tax returns and ID ready for the verification process.
9. Letter 5071C – Suspicious Return Flagged
This letter notifies you that the IRS received a suspicious tax return using your information.
What to do:
- Visit idverify.irs.gov or call the IRS directly.
- Report identity theft to the FTC and monitor your credit report.
10. CP71C – Annual Unpaid Tax Reminder
This is a yearly notice reminding you of a long-standing tax debt.
What to do:
- Revisit your options such as installment agreements or Offer in Compromise.
- Work with a tax resolution lawyer to seek relief programs.
When to Hire a Tax Lawyer for IRS Notices
Some IRS notices require immediate legal action to prevent wage garnishments, asset seizures, or personal liability. An experienced tax attorney can:
- File appeals or petitions in Tax Court
- Stop collections and negotiate settlements
- Assist with innocent spouse relief or identity theft
- Represent you in IRS audits and hearings
Final Thoughts
Understanding and responding promptly to IRS notices can make the difference between resolving a tax issue or facing escalating penalties and enforcement. Whether it’s a CP2000, CP14, or Final Notice of Intent to Levy, the right action can protect your finances and peace of mind.
Contact America’s Tax Defender today for personalized help handling any IRS notice. Our team is ready to defend your rights and restore your financial health.
