Got a Letter From the IRS? How to Read It and What to Do Next
How to read an IRS notice, what the most common letters mean, and how to respond before the deadline.
By Victoria Nguyen, EA, Enrolled Agent · October 27, 2026
The IRS sends millions of letters every year. Most can be resolved without much trouble, as long as you read them carefully and respond on time. Here is how to make sense of the letter in your hand.
Step 1: Make sure it’s real
The IRS usually first contacts people by mail. It does not demand payment by gift card, wire transfer, or cryptocurrency, and it does not threaten arrest over the phone. If a letter looks suspicious, compare it with your IRS online account, or send it to us and we will help you check.
Step 2: Find the notice number
Look in the top or bottom right corner for a code such as “CP2000” or “LTR 1058.” That code tells you what the letter is about. The IRS has a page that explains each one: Understanding your IRS notice or letter.
Common notices and what they mean
- CP2000: The IRS found income on forms like a W-2 or 1099 that doesn’t match your return and is proposing a change. You can agree or disagree, with an explanation, by the response date.
- CP14: You have a balance due. It shows what you owe and asks for payment.
- CP501 and CP503: Reminders that a balance is still unpaid.
- CP504: A notice of intent to levy. The IRS may take your state refund and begin collection on other assets.
- LT11 or Letter 1058: A final notice of intent to levy and your right to a hearing. You generally have 30 days to request a Collection Due Process hearing, so act quickly.
- Letter 5071C: The IRS needs to verify your identity before it processes a return filed under your name.
Step 3: Note the deadline
Most letters include a response date. Missing it can limit your options and lets penalties and interest keep growing. If you need more time, it is usually better to respond and ask than to stay silent.
Step 4: Compare it with your return
Pull out the return for the year in question. Many letters come from a missing form or a simple mismatch that is easy to explain with documents.
Step 5: Decide whether to get help
If the letter proposes a large change, mentions a levy or lien, or involves several years, it is worth having a professional review it. An Enrolled Agent can speak with the IRS for you after you sign Form 2848, the IRS power of attorney.
What about California?
The Franchise Tax Board (FTB) sends its own notices for state income tax, and the CDTFA and EDD handle sales and payroll taxes. We represent clients with all of these agencies, in addition to the IRS.
Common questions
Should I call the IRS myself?
You can, but it helps to understand the notice first. With Form 2848, an Enrolled Agent can speak with the IRS for you.
What happens if I ignore an IRS letter?
Penalties and interest keep growing, and the IRS can move toward collection actions such as a levy or lien.
Can you help with Franchise Tax Board letters too?
Yes. We help clients respond to FTB, CDTFA, and EDD notices in addition to IRS letters.
Need help with this?
Book a consultation and we will review your situation and explain your options in plain language.
This article is general information, not tax or legal advice for your specific situation. Tax rules change, so please contact us before acting on it.