I Got an IRS Notice — What Do I Do? (2025 Guide)
Most IRS notices are not audits — they're usually about a small math correction or a balance you owe. Find the CP or LTR number in the top right corner of your letter, then look it up below to see exactly what it means and what to do.
First, find your notice number
Every IRS notice has a number in the top right corner. It starts with "CP" or "LTR". This number tells you exactly what the IRS wants and how urgently you need to act. Find yours and look it up in the table below.
Most common IRS notices explained
Here are the notices people receive most often. Find yours in the list below. If your notice isn't here, call the number printed on your letter — that connects you to the right IRS department.
| Notice # | What It Means | Urgency | What To Do |
|---|---|---|---|
| CP14 | You owe taxes | Medium | Pay or set up a payment plan within 21 days |
| CP2000 | Income doesn't match records | Medium | Review carefully, respond within 60 days |
| CP501 | First reminder you owe | Low | Pay or call for a payment plan |
| CP503 | Second reminder | Medium | Pay now to avoid more penalties |
| CP504 | Final notice before levy | High | Act now — IRS may seize your state refund |
| LT11 | Intent to levy | Urgent | Call the IRS immediately. You have 30 days. |
| CP90 | Final notice of levy | Urgent | 30 days to appeal or pay. Get professional help. |
| CP12 | Math error in your favor | Good news! | Bigger refund coming. No action needed. |
| CP21 | Changes to your return | Low | Review changes. If you agree, no action needed. |
How to respond to an IRS notice
Take a breath. You've got time. Follow these steps and you'll handle it just fine.
Read the entire notice carefully
Don't just look at the amount. Read what the IRS is asking for and why. Check the deadline — it's usually printed near the top.
Compare it to your records
Pull up your tax return for that year. Compare the numbers the IRS lists with what you actually filed.
Decide if you agree or disagree
If the IRS is right, pay or set up a payment plan. If they're wrong, gather your documents — W-2s, 1099s, receipts — to support your case.
Respond by the deadline
Mail your response to the address printed on the notice (not the regular IRS address). Include a copy of the notice with your response.
Keep copies of everything
Copy the notice, your response, and every supporting document. Keep them for at least 7 years. You may need them later.
Setting up a payment plan
Can't pay the full amount? That's okay. The IRS offers two types of payment plans, and most people qualify.
Short-term payment plan
You get up to 180 days to pay in full. There's no setup fee. Interest still accrues, but there's no additional penalty for using this option.
Long-term payment plan (installment agreement)
Monthly payments spread over time. The setup fee is $31 if you apply online (or $130 by phone/mail). If you're low-income, the fee may be waived.
You can set up either plan at irs.gov/paymentplanif you owe $50,000 or less. It takes about 10 minutes. You'll need your most recent tax return and the notice.
What you should NEVER do
These mistakes can turn a manageable situation into a serious problem. Avoid them.
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