What does your IRS letter mean?

Underreported Income (Proposed Changes)

A CP2000 notice means income reported to the IRS by employers, banks, or brokers doesn't match what's on your tax return, and the IRS is proposing a change to your tax — it is not a bill and not an audit.

Balance Due — First Notice

A CP14 notice is the IRS's first bill: it says you filed a return with a balance due that hasn't been paid, and it starts the collection clock.

Notice of Intent to Levy

A CP504 is an urgent IRS collection notice saying the IRS intends to levy (seize) your state tax refund and may pursue other property if you don't pay or make arrangements — it's the last step before final levy notices.

Final Notice of Intent to Levy

An LT11 (or Letter 1058) is the IRS's final notice before levying your wages, bank accounts, or property — you have exactly 30 days to request a Collection Due Process hearing, which pauses collection.

Balance Due Reminders

CP501 and CP503 are escalating reminder bills for an unpaid tax balance — CP501 is the first reminder after a CP14, and CP503 means the IRS still hasn't heard from you and the next step is the CP504 intent-to-levy notice.

Refund Hold — Return Under Review

A CP05 notice means the IRS is holding your refund while it verifies information on your return — income, withholding, or credits — and you generally don't need to do anything unless they ask for documents.

Identity Verification Required

A 5071C letter means the IRS suspects identity theft and needs you to verify your identity — online at idverify.irs.gov or by phone — before it will process the return filed under your Social Security number.

Correspondence Audit — Documents Requested

A CP75 (or Letter 566) is a correspondence audit: the IRS is holding part or all of your refund and asking for documents to prove specific items — most often the Earned Income Credit, dependents, or filing status.

Statutory Notice of Deficiency (90-Day Letter)

A CP3219A is the Statutory Notice of Deficiency — the IRS's formal determination that you owe additional tax, giving you exactly 90 days to petition the U.S. Tax Court before the tax is assessed.

Refund Applied to Other Taxes Owed

A CP49 notice means the IRS took some or all of this year's refund and applied it to a tax balance you owed from another year — the notice shows which year's debt was paid and any refund remaining.

Estimated Payment Mismatch — Balance Due

A CP23 notice means the estimated tax payments the IRS has on record don't match what you claimed on your return, so your refund changed or you now owe — usually because a payment was misdated, misapplied, or claimed twice.

Final Notice — Intent to Levy Federal Payments

A CP90 is a final notice that the IRS intends to levy your federal payments — including Social Security benefits — and like the LT11, it starts a strict 30-day window to request a Collection Due Process hearing.

Business Balance Due

A CP161 is the business version of a balance-due bill: your business return (941 payroll, 1120, 1065) shows tax due that wasn't fully paid — and for payroll taxes, it can escalate to personal liability for owners.

Income Mismatch Inquiry (Pre-CP2000)

A CP2501 notice means the IRS found a difference between income reported by third parties and your tax return and is asking you to explain it — it comes before a CP2000 and proposes no tax change yet.

Math Error — Balance Due

A CP11 notice means the IRS corrected what it considers a miscalculation on your return and the change results in a balance due — you have 60 days to dispute it before the assessment becomes final.

Math Error — Refund Changed

A CP12 notice means the IRS corrected an error on your return and changed your refund amount — often larger or smaller than expected — and no response is needed unless you disagree.

No Record of a Prior-Year Return

A CP59 notice means the IRS has no record that you filed a prior-year tax return it believes you were required to file — you should file it, or explain why you weren't required to.

Annual Balance Reminder

A CP71 or CP71C is the IRS's annual reminder that you still owe a tax balance — it isn't a new bill or a levy threat, but it shows the debt (with penalties and interest) is active and growing.

Installment Agreement Default — Intent to Terminate

A CP523 notice means you defaulted on your IRS payment plan — by missing a payment, incurring new tax debt, or not filing a return — and the IRS intends to terminate the agreement and resume collection (including levies) in 30 days.

Passport Certification — Seriously Delinquent Debt

A CP508C notice means the IRS certified your tax debt as 'seriously delinquent' (over ~$62,000 with a lien or levy in place) to the State Department, which can now deny your passport application or renewal — and in some cases revoke it.

Identity Verification — Phone Only

A 4883C letter means the IRS needs you to verify your identity by PHONE before processing the return filed under your SSN — unlike the 5071C, there is no online option for this letter.

Collection Notices Resuming

An LT38 notice tells you the IRS is restarting its automated collection reminders on your unpaid balance — it's not a levy notice itself, but the escalation sequence (and penalties and interest) resumes after it.

Wage Levy (Garnishment) Served

A Form 668-W is an active IRS wage levy: your employer has been ordered to withhold a large portion of every paycheck and send it to the IRS — only a small exempt amount reaches you until the levy is released.