Received an IRS Notice? What Each Letter Means and What to Do
By Martina V.
An IRS notice is unsettling, but most are manageable if you understand what they're telling you and act within the deadlines. Here's a plain-language guide to the notices I see most often.
Received an IRS Notice? What Each Letter Means and What to Do
An IRS notice in the mail is unsettling — but most are manageable if you understand what they're telling you and act within the deadlines. Here's a plain-language guide to the notices I see most often.
Balance-due notices (CP14, CP501, CP503, CP504)
These tell you that you owe a balance and request payment. The series escalates:
- CP14 — The first balance-due notice, issued shortly after a return is processed with a balance.
- CP501 / CP503 — Reminders. The tone firms up, but no collection action has started yet.
- CP504 — Intent to levy. This is a serious escalation; the IRS is signaling it may begin seizing assets.
If you've reached CP504, contact a representative promptly.
Final Notice of Intent to Levy (LT11 / CP90)
This is the notice that legally authorizes the IRS to levy. By law, the IRS must wait 30 days after issuing it before seizing wages or bank accounts — but that 30-day window is also your opportunity to request a Collection Due Process hearing, which pauses the levy. If you receive this notice, treat it as urgent.
Notice of Federal Tax Lien Filing
This tells you the IRS has filed a federal tax lien — a public claim against your property. A lien doesn't seize anything, but it damages credit and attaches to assets. There are options to withdraw or subordinate a lien, but they require a resolution in progress.
Examination notices (CP75)
A CP75 means the IRS is examining (auditing) part of your return — usually a credit or deduction. It's not a collection notice, but it can result in a balance if the IRS disallows an item. Responding accurately and on time is critical.
What to do with any notice
- Don't ignore it. Most notices have deadlines, and missing them narrows your options.
- Read the letter code. The CP or LT number in the corner tells you exactly what you're dealing with.
- Get transcripts. IRS transcripts reveal the full picture — balances, assessments, and pending actions.
- Call a representative if a deadline is near or a levy notice has arrived. The earlier I'm involved, the more tools remain available.