IRS Notice Reference
What does your IRS notice mean?
Find your notice number below. Each entry explains what the IRS is saying, your deadline to respond, what may happen if you don't, and how we can help.
CP2000
Underreported Income
The IRS received information from a third party (employer, bank, broker) that doesn’t match what you reported. They’re proposing a change to your tax. This is a proposal, not a final bill.
Deadline30 days from the notice date
If ignoredIf you don’t respond, the proposed assessment becomes final. The IRS will adjust your return and bill you for the difference, plus penalties and interest.
What we doWe review the proposed changes against your records, identify discrepancies, and prepare a documented response.
CP2501
Proposed Changes to Your Return
The IRS is proposing specific changes to your tax return based on information they’ve received. Similar to a CP2000, but may cover different types of adjustments.
Deadline30 days from the notice date
If ignoredIf you don’t respond, the changes are applied automatically. Your return is adjusted and you may owe additional tax, penalties, and interest.
What we doWe review the IRS’s proposed changes, compare them to your records and applicable tax law, and prepare a response that addresses each adjustment.
CP14
Balance Due
Your return was processed and shows an unpaid balance. This is the IRS’s first formal notice that you owe taxes. Interest and penalties are already accruing.
Deadline21 days from the notice date
If ignoredPenalties and interest continue to accrue daily. Ignoring this notice triggers the collection sequence (CP501, CP503, CP504).
What we doWe review the balance for accuracy, assess penalty-relief options, and explain the next steps available for resolving the notice.
CP501
Reminder of Balance Due
A follow-up to CP14. The IRS is reminding you that the balance remains unpaid. This is the second notice in the collection sequence.
Deadline10 days from the notice date
If ignoredEscalation to CP503, then CP504 (pre-levy notice). Each step in the sequence brings you closer to enforced collection.
What we doWe review the outstanding balance, assess whether any prior responses were missed, and explain the next response options before the situation escalates.
CP503
Urgent Balance Due
Third notice in the balance-due sequence. The IRS is signaling that collection action is approaching. This is the last routine reminder before enforcement.
DeadlineRespond immediately
If ignoredThe next notice is CP504 — a formal notice of intent to levy. Once issued, the IRS may seize your state tax refund, bank accounts, and other property.
What we doWe review your account status, identify the immediate deadlines, and explain the available response paths before the IRS issues a levy notice.
CP504
Intent to Levy
The IRS intends to levy your state tax refund and may pursue other assets. This is the final notice before enforcement action begins.
Deadline30 days from the notice date
If ignoredYour state tax refund may be seized. The IRS may also levy bank accounts, wages, and other property.
What we doWe review the notice, explain the levy timeline and available procedural options, and determine whether the matter fits our current engagement scope.
CP504B
Intent to Levy (State Refund)
A variant of CP504 specifically notifying you that the IRS intends to seize your state tax refund to apply toward your federal balance.
Deadline30 days from the notice date
If ignoredYour state tax refund may be seized and applied to your federal balance. Further collection action may follow.
What we doWe review your account and the underlying balance, assess whether the amount is correct, and explain the time-sensitive next steps.
Letter 525
General 30-Day Letter
The IRS has completed an examination and is proposing changes to your return. This letter gives you 30 days to agree or request a conference with IRS Appeals.
Deadline30 days from the letter date
If ignoredIf you don’t respond, the case proceeds to a statutory notice of deficiency (90-day letter). Once that deadline passes, the IRS may assess the proposed changes.
What we doWe review the examination findings, explain the protest timeline, and determine whether additional examination representation or referral is needed.
Letter 692
Request for Consideration
The IRS is asking you to review and respond to proposed changes. This letter may accompany an examination report and requests your agreement or disagreement.
Deadline30 days from the letter date
If ignoredIf you don’t respond, the IRS position is finalized and the proposed changes are assessed.
What we doWe review the examination report, identify supported areas of disagreement, and prepare a written response within the scope of the engagement.
CP161
Business Balance Due
The IRS says your business owes taxes. This is the business equivalent of CP14 and begins the business collection process.
DeadlineVaries — check the notice for your specific date
If ignoredBusiness collection action, including federal tax liens, levies on business bank accounts, and potential trust fund recovery penalties for responsible individuals.
What we doWe review the business notice and determine whether the matter fits our current engagement scope or requires separate business-account representation.
LT11 / Letter 1058
Final Notice of Intent to Levy
The IRS is ready to levy. This is your last formal opportunity to request a Collection Due Process (CDP) hearing under IRC §6330. This notice carries specific legal rights that expire.
Deadline30 days to request a CDP hearing
If ignoredThe IRS may levy wages, bank accounts, accounts receivable, and other property. Missing the 30-day CDP deadline forfeits most appeal rights.
What we doWe review the deadline, explain what a CDP request involves, and determine whether separate collection representation is needed immediately.
CP91 / CP298
Levy on Social Security Benefits
The IRS intends to levy up to 15% of your Social Security benefits to satisfy an outstanding tax debt. This notice is sent before the levy begins.
Deadline30 days from the notice date
If ignoredYour Social Security benefits may be reduced by up to 15% until the tax debt is satisfied. This can continue indefinitely.
What we doWe review your account, explain the time-sensitive options, and determine whether separate collection representation is needed.
This guide is for informational purposes only. IRS procedures, deadlines, and penalty amounts are subject to change. Individual circumstances vary. This information does not constitute tax advice. Consult a qualified tax professional for guidance specific to your situation.