Have you received an IRS notice? Wondering what it means? Trying to figure out what to do? Contact us at (404) 609-1300 to take the first step toward a resolution. At Wiggam Law, we can communicate with the IRS on your behalf and help you put your tax debt behind you.
Keep reading for details on what IRS notices mean, how to respond, and what to expect if you don’t take action.
Key takeaways
- Tax Due Notices – The IRS sends several “soft notices” before escalating collection actions.
- Final Intent to Levy, With Your Right to a Hearing – you must respond or risk losing wages and assets.
- Get guidance – contact a tax professional for help with IRS notices
When to Expect IRS Notices – The Collection Cycle
Although the timing can vary, collection notices typically come on a six to eight-week cycle. If you haven’t heard from the IRS in years and you receive a notice, don’t assume it will take years to receive the next notice. Generally, once you get one notice, the game is on, and you will see more soon.
Here is a guide to the most common IRS collection notices:
| Initial – Soft Notices | |||
|---|---|---|---|
| Notice | What it says | How to respond | What if you don’t respond |
| CP14 | You owe taxes. | Appeal if you disagree, or contact IRS to make payment arrangements | Penalties and interest will increase your balance |
| CP501 notice | First reminder of taxes due | Contact the IRS to make payment arrangements | If you don’t pay, the IRS will add penalties and interest |
| LT16 | Call the IRS about your tax debt | Make payment arrangements | The IRS will add penalties and interest. |
| LT17 | You owe taxes | Make payment arrangements, apply for hardship, or appeal the tax | Penalties and interest will be added to your balance |
| LT19 | How to pay unpaid taxes online | Make payment arrangements or contact the IRS about hardship options | Penalties and interest get added to the balance. |
| CP71 | Reminder of tax due | Make payment arrangements or continue paying monthly through your installment agreement. | Interest and penalties continue to be added. If you’re on a payment plan, you can stay on it. |
What is an automated collection notice?
Most IRS notices aren’t typed by hand and put in an envelope by a human. Instead, they are generated by the IRS’s Automated Collection System (ACS). Most notices that start with “CP” are computer-generated.
| More Aggressive Notices | |||
|---|---|---|---|
| Notice | What it says | How to respond | What if you don’t respond |
| CP503 | Second reminder of taxes due | Pay in full or make payment arrangements | The IRS will send an intent to levy notice |
| CP504 | Intent to levy | Make payment arrangements or appeal through the Collection Appeals Program. | The IRS will seize your tax refund, issue a tax lien, and possibly take your passport. |
| CP504B | Intent to levy business assets | Make arrangements to pay business taxes | The IRS will seize tax refunds and prepare to send a final notice before taking assets. |
What does LT38 mean?
The IRS sends LT38 to notify taxpayers about the resumption of collection actions. In particular, the agency sent out this notice in 2024 and 2025, when it resumed collection actions after a temporary pause during the COVID-19 pandemic.
What is CP40?
The IRS CP40 says that your account has been assigned to a collection agency. There will be a code on the letter that you can use to verify the collection agency. Do not talk to anyone at a collection agency unless they know the code on your notice.
What is CP508C?
If you receive CP508C, the IRS has notified the State Department to rescind your passport. If you’re out of the country, you can get it back, but cannot travel on that passport. Make arrangements immediately to preserve your right to travel internationally.
What is a refund offset notice?
One of the first collection actions the IRS takes is seizing your tax refund. In lieu of CP504, you may get:
- CP16 — The IRS is keeping your tax refund to cover a tax liability created by an error on your tax return
- CP49 — The IRS is keeping your tax refund to cover your unpaid tax, and it will send you the difference if there’s any money left
- CP88 — The agency is keeping your tax refund because you have unfiled returns, and you may owe a tax bill
What is Letter 5857?
The IRS sends Letter 5857 when assessing a failure to deposit penalty on taxpayers who have not made payroll deposits for their employees.
Intent to Levy Notices
The most serious IRS notices are the Intent to Levy notices. If you receive a final notice of intent to levy, the IRS will start levying your wages, bank accounts, or other assets if you don’t respond by the deadline. Once a wage garnishment or an asset seizure is in place, it can be very difficult to remove.
The IRS sends several different intent to levy notices, including:
| Intent to Levy Notices | |||
|---|---|---|---|
| Notice | What it says | How to respond | What if you don’t respond |
| LT11 | Intent to Levy, Notice of Your Right to Hearing | Request a CDP hearing or make payment arrangements | The IRS will garnish wages or seize assets in 30 days. |
| CP90 | Intent to Levy, Notice of Your Right to Hearing | Request a CDP hearing or make payment arrangements | The IRS may seize your Social Security Payments. The IRS will garnish wages or seize assets in 30 days. |
| LT1058 | Intent to Levy, Notice of Your Right to Hearing | Request a CDP hearing or make payment arrangements | The IRS will garnish wages or seize assets in 30 days. |
| CP297 | Intent to Levy, Notice of Your Right to Hearing | Request a CDP hearing or make payment arrangements | The IRS will garnish wages or seize assets in 30 days. |
Installment Agreement Notices
The IRS will send you a letter if it accepts or rejects your installment agreement. While you have an active agreement, you may also get CP14A. This is the same as the usual CP14, but in addition to alerting you about your tax due, it also acknowledges that you have requested a payment plan.
If you default on your installment agreement, the IRS may send you CP523 (Intent to Terminate Installment Agreement and Seize Your Assets). Make sure you contact the agency immediately if this happens.
Notices About Unfiled Tax Returns
The IRS may send you a notice if you don’t file a tax return. The agency is most likely to contact taxpayers when it receives income documents (W2s, 1099s, etc.) from other parties and no return from the taxpayer.
- Form 15103 – Complete this form to explain why you haven’t filed a tax return, which often comes with other notices about failure to file.
- CP59: As of 2024, the IRS plans to send out over 100,000 of these notices to taxpayers with unfiled returns dating back to 2017.
- Substitute for Return: If you don’t file, the agency may generate a substitute for return and send you a notice about it.
- CP3219N: This proposed deficiency notice comes after the IRS issues an SFR, and if you don’t respond within 90 days, the IRS will assess the tax against you.
There are usually three ways to respond to these notices: 1) file an accurate tax return for the year you didn’t file, 2) explain that you didn’t need to file, or 3) prove that you already filed a tax return.
Notices About Changes to Your Tax Account
If the IRS receives information that contradicts the details on your tax return, it will update your return and send you a letter. The notice will update the reason for the change and the amount that you owe due to the change.
- CP11: Change due to math error or miscalculation
- CP22A: Changes initiated by the taxpayer — if you didn’t make changes, contact the IRS immediately
- CP3219A: Changes due to information from a third party
- CP2000: Changes related to unreported income (based on income documents received from a third party)
In most cases, you get a limited amount of time to respond if you disagree with the changes.
Employee Retention Credit Notices
The IRS also sends notices when reviewing specific tax credits, like the Employee Retention Credit:
- Notice 6612 – The IRS is reviewing your ERC claim.
- Notice 105-C – The IRS has disallowed your ERC claim
Is This IRS Notice Real?
Some letters that look like official IRS notices may be fake. Unfortunately, scam artists know that many people are afraid of the IRS and leverage this fear to steal money or information from them.
Be very cautious about this risk — if you receive an IRS letter that appears fake, contact a tax professional or call the IRS directly. Remember that if you think the letter may be fake, you shouldn’t use the phone number on the letter. Instead, use the agency’s main phone number at (800) 829-1040.
Audit Notices
An audit notice isn’t a collection notice, but it is very serious, and you must respond as directed. The notice may ask you to verify a few of the details on your tax return, or it may ask you to schedule an in-person meeting with an IRS auditor to go over every detail on your return.
For example, CP75 is a type of audit notice. The IRS sends this letter when it wants more information about a tax credit you claimed on your return. Other audit notices are much more extensive and ask for a lot more information.
Review the notice carefully to ensure it’s legitimate. Then, contact the IRS to learn more about the scope of the audit. To help the process move smoothly, you may want to hire audit representation.
IRS Requests for Information and Meetings
Sometimes, the IRS may send you notices that request additional information:
- Form 9297 – When an IRS revenue officer gets assigned to your account, they use this form to collect financial details from you.
- Letter 725-B – The IRS wants to meet in person to talk about Form 9297.
- Form 4564 – Information Document Request that lists documents the IRS wants to see, often related to audits or other IRS concerns.
- Form 2039 – The IRS is summoning info about you or a third party.
What to Do if You Receive a Letter From the IRS
First of all, take a deep breath. Even with the worst IRS notices, you have time to respond. Then, look for the deadline in the letter. Ensure you know when you need to respond or risk incurring more penalties and facing collection actions.
You are not alone if you can’t deal with opening your IRS notices. Tax debt is very stressful; sometimes, ignoring the situation is easier. Unfortunately, this strategy won’t hold up for long. Eventually, the agency will start to garnish your wages, seize the funds in your bank account, or take other actions.
Instead of ignoring the situation, reach out to a tax professional. They can answer your questions, help you figure out the best steps forward, and negotiate with the IRS on your behalf.
Contact the experienced tax attorneys at Wiggam Law today to take the first step toward resolving your tax issue. Call us at (404) 233-9800 or complete our online consultation form to connect with our team.