The IRS Notice Decoder.

Every notice, in plain English.

What each letter means, how long you have to answer it, and what we do about it.

CP2000

Underreporter Inquiry

Respond within 30 daysAppeal rights apply

The IRS matched third-party records (W-2s, 1099s) against your return and believes you underreported income. This is a proposal, not a bill. It can be contested with documentation.

What we doDo not simply pay it. Roughly half of CP2000s are wrong or overstated. We reconcile the records and respond before the deadline.

CP2501

Income Discrepancy Inquiry

Respond within 30 days

An early-stage letter, before a CP2000, saying the income on your return does not match what third parties reported. No amount is proposed yet.

What we doThe best time to fix a mismatch is before the IRS proposes a number. We respond with the reconciliation now, and a CP2000 usually never comes.

CP14

Balance Due

Respond within 21 days

The first bill. The IRS says you owe tax, and interest is now accruing daily. This is the earliest and cheapest moment to resolve it.

What we doWe verify the number against your transcripts first. If it stands, we set up the resolution before penalties compound. If not, we contest it.

CP501

First Reminder of Balance Due

Respond within 21 days

A reminder that a balance remains unpaid. Interest and the failure-to-pay penalty keep accruing while it sits.

What we doStill early, still cheap. We confirm the balance and put a resolution in place before the letters escalate.

CP503

Second Reminder of Balance Due

Respond within 10 days

The second reminder. The tone sharpens and the next step after this one starts carrying enforcement consequences.

What we doThis is the last comfortable moment. We move now, before the CP504 window opens intent-to-levy language.

CP504

Notice of Intent to Levy

Respond within 30 days

The IRS states it intends to levy your state tax refund and begin searching for other assets. The letters after this one carry real seizure power.

What we doWe get Form 2848 on file immediately, pull transcripts, and open resolution talks before the final notice issues.

CP504B

Intent to Levy · Business

Respond within 30 days

The business version of the CP504. The IRS intends to levy business assets, including receivables and bank accounts.

What we doBusiness levies can stop payroll cold. We intervene with collections immediately and protect the operating accounts.

LT11

Final Notice of Intent to Levy (also Letter 1058)

Respond within 30 daysAppeal rights apply

The last stop before wages, bank accounts, and property can be levied. It also opens your right to a Collection Due Process hearing, a powerful tool with a strict clock.

What we doWe file Form 12153 within the 30-day window. That stops levy action and moves your case to Appeals, where resolutions get negotiated.

CP90

Final Notice of Intent to Levy

Respond within 30 daysAppeal rights apply

Same power as the LT11: the IRS can levy after 30 days, and your Collection Due Process rights are open.

What we doCDP request filed inside the window. Levy stops, the file moves to Appeals, and we argue collection alternatives on the record.

CP91

Intent to Levy Social Security

Respond within 30 daysAppeal rights apply

The IRS intends to take up to 15% of your Social Security benefits through the Federal Payment Levy Program.

What we doBenefit levies are often stoppable on hardship grounds. We move for CNC status or a resolution before the levy attaches.

CP92

Levy on State Refund (also CP242)

Respond within 30 daysAppeal rights apply

The IRS already levied your state tax refund and is telling you after the fact. You have Collection Due Process appeal rights now.

What we doThe refund is likely gone, but the CDP window this notice opens is valuable. We use it to resolve the whole balance, not just this levy.

CP523

Installment Agreement Default

Respond within 30 daysAppeal rights apply

Your payment plan is in default and the IRS intends to terminate it, which reinstates full collection, levies included.

What we doAgreements can usually be cured or restructured, but only before termination finalizes. We call before the deadline does.

CP508C

Passport Certification

Respond within act now

Your tax debt was certified to the State Department as seriously delinquent. Your passport can be denied or revoked until it is resolved.

What we doA qualifying resolution (IA, OIC, CNC) reverses the certification. We prioritize the reversal if travel matters to you.

CP71C

Annual Balance Reminder

Respond within none stated

The annual statement of what you still owe. It is not an enforcement letter, but it means the debt and the interest clock are alive.

What we doA good prompt to check the CSED clock. Sometimes the smartest move is a resolution; sometimes it is strategic patience. We do the math.

CP40

Private Collection Assignment

Respond within none stated

Your account was assigned to a private collection agency. They can call, but they hold none of the IRS enforcement powers.

What we doYou can opt out of private collection in writing. We pull the account back and deal with the IRS directly, on our terms.

LT38

Collection Restart Notice

Respond within 21 days

The IRS is resuming collection on an old balance after a pause. The next letters follow the normal escalation ladder.

What we doOld balances mean CSED leverage. We pull transcripts, date every assessment, and pick the strategy the clock supports.

CP75

Audit · Credits Under Review

Respond within 30 days

The IRS is auditing credits on your return, usually EITC, child tax credit, or head-of-household status, and is holding your refund meanwhile.

What we doDocumentation wins these. We assemble the proof package and respond so the refund releases.

Letter 525

30-Day Letter · Exam Report

Respond within 30 daysAppeal rights apply

The audit is done and this is the proposed result. You have 30 days to protest to the IRS Independent Office of Appeals before it becomes final.

What we doWe file the written protest and argue the exam findings in Appeals, where most audit results get improved.

CP3219A

Notice of Deficiency (90-Day Letter)

Respond within 90 daysAppeal rights apply

The statutory notice. You have exactly 90 days to petition the U.S. Tax Court. Miss it and the proposed tax assesses automatically. The deadline cannot be extended.

What we doNinety days means ninety days. We evaluate Tax Court versus audit reconsideration versus payment strategy, and we file before the clock runs.

Letter 531

Notice of Deficiency

Respond within 90 daysAppeal rights apply

Same statutory power as the CP3219A: a 90-day window to petition Tax Court before the assessment becomes final.

What we doEverything the 90-day letter demands, we handle: petition, Appeals settlement talks, or the resolution track that fits the numbers.

CP15

Civil Penalty Notice

Respond within 30 daysAppeal rights apply

The IRS assessed a civil penalty against you, often for information-return failures or frivolous filings. Appeal rights exist but the windows are short.

What we doPenalty abatement is our home turf: reasonable cause, first-time abatement, or a post-assessment appeal. We pick the strongest route.

CP215

Civil Penalty · Business

Respond within 30 daysAppeal rights apply

The business version of a civil penalty assessment, common for late or missing information returns like 1099s and W-2s.

What we doThese penalties stack fast but abate often. We build the reasonable-cause file and take it to Appeals if needed.

Letter 1153

Trust Fund Recovery · Proposed

Respond within 60 daysAppeal rights apply

The IRS proposes to assess the Trust Fund Recovery Penalty against you personally for unpaid payroll taxes. This pierces the business and reaches your personal assets.

What we doThe 60-day protest window is everything. We contest responsibility and willfulness, the two legs the penalty stands on.

Letter 3172

Federal Tax Lien Filed

Respond within 30 daysAppeal rights apply

A Notice of Federal Tax Lien was filed against your property. It attaches to everything you own and shows in public records. CDP appeal rights are open.

What we doWe request the CDP hearing and pursue withdrawal, discharge, or subordination depending on what you need the lien off of.

CP59

Unfiled Return Inquiry

Respond within 30 days

The IRS has no return on file for the year listed and is asking for it. Ignore it and the IRS may file one for you, with no deductions in your favor.

What we doWe prepare and file the real return before the IRS invents one. Original returns nearly always beat substitutes.

CP518

Final Notice · Unfiled Return

Respond within 30 days

The final unfiled-return notice before the IRS prepares a Substitute for Return with maximum tax and zero mercy.

What we doFiling now is dramatically cheaper than unwinding an SFR later. We reconstruct records from transcripts and file.

Letter 725-B

Revenue Officer Appointment

Respond within per letter

A human revenue officer is now assigned to your case and wants a meeting. This is the most serious stage of IRS collections.

What we doYou never meet a revenue officer alone. With the 2848 on file, we attend for you and manage every request deliberately.

CP12

Return Corrected · Refund Changed

Respond within 60 days

The IRS corrected a math error on your return and changed your refund. If you disagree, you have 60 days to respond before the change sticks.

What we doMath-error corrections are frequently wrong. We check the correction against the return and push back inside the window.

CP22A

Return Changed · Balance Due

Respond within 21 days

Changes were made to your return, at your request or from a correction, and you now owe. Interest runs from the original due date.

What we doWe verify the change is right before anyone pays it, then resolve the balance the smart way if it stands.

Letter 12C

Information Request

Respond within 20 days

The IRS needs more information before it can finish processing your return, often a missing form or verification.

What we doUsually resolvable quickly. Ignore it and the return never processes.

5071C

Identity Verification

Respond within 30 days

The IRS suspects a return filed in your name may not be yours and is holding it until you verify your identity.

What we doWe help you through the verification, and if the return was not yours, we open the identity-theft protocol immediately.

This reference is general information, not advice on your specific matter. An Enrolled Agent has to read your actual notice and your transcripts before telling you what to do about it.