The IRS sends various letters for common reasons like balance due (CP501, CP504), return corrections (CP12, CP2000), identity verification, or to request information, and these notices often have codes like "CP" (Continuity and Processing) or specific numbers (like Letter 531 for a Notice of Deficiency) indicating the issue, from simple reminders to final notices before actions like levy (CP90). They generally fall into categories like collections, audits, return errors, or requests for information, and require careful, timely responses to avoid penalties.
If you receive an IRS notice or letter
We may send you a notice or letter if: You have a balance due. Your refund has changed. We have a question about your return.
The IRS mails letters or notices to taxpayers for a variety of reasons including:
Notice of Tax Due and Demand for Payment, Notice CP14, Balance Due $5 or More, No Math Error, is the first and most common notice sent to taxpayers.
A notice may reference changes to a taxpayer's account, taxes owed, a payment request or a specific issue on a tax return. Taking prompt action could minimize additional interest and penalty charges.
An IRS audit letter typically contains the taxpayer's name, tax ID number, contact information, and a request for additional documentation to support claims on the tax return. It may also include the name of the IRS officer handling the case and invite the taxpayer to a meeting.
You know the IRS might be investigating you through official mail (first contact), phone calls (often with automated messages to IRS.gov), or in-person visits, but signs of a criminal probe include contact with IRS Criminal Investigation (CI) agents, subpoenas to you or your bank, questions to your accountant/bank, unusual account activity (freezing/refusing transactions), or agents suddenly going silent after an audit. Key indicators are official IRS letters, contact from CI special agents, third-party inquiries, and formal summonses for records, signaling serious scrutiny beyond a simple audit.
Not reporting all of your income is an easy-to-avoid red flag that can lead to an audit. Taking excessive business tax deductions and mixing business and personal expenses can lead to an audit. The IRS mostly audits tax returns of those earning more than $200,000 and corporations with more than $10 million in assets.
The Internal Revenue Service (IRS) will send a notice or a letter for any number of reasons. It may be about a specific issue on your federal tax return or account, or may tell you about changes to your account, ask you for more information, or request a payment.
We typically contact you the first time by mail delivered by the U.S. Postal Service. To verify it's us, search IRS notices and letters. Some letters are sent from private collection agencies.
Common reasons the IRS may send you a letter
Here are some of the most common reasons you may receive a letter or notice: You owe a balance on your tax return and need to make a payment. Your tax refund has been adjusted by the IRS. You have questions on your return that the IRS wants clarified.
You can find digital copies of most IRS notices in your online account, under the 'Notices and Letters' section.
Common reasons for IRS letters include:
The IRS is a government agency and the audit letter is sent by certified mail.
Types of notices
The IRS sends letters now (typically early in the year or year-round) for various reasons, including matching tax return info to third-party data (like W-2s/1099s), questioning discrepancies, requesting identity verification, notifying of account changes, asking for payments on balances due, or informing you about a return processing delay or change to your return, so you should always open and read IRS mail carefully, as it requires action or provides important info about your taxes, often concerning a discrepancy.
You might receive IRS mail for a variety of reasons–it could be about your tax return, a payment, or a notice of a discrepancy. Make sure you read it carefully and respond if needed. Usually, the notice will include instructions.
Check which tax year the notice is for and follow the instructions provided; you usually have 30 days to respond. Compare the IRS adjustments to your records and tax return. If you agree with the notice, indicate that on the response form and send a check or money order for any additional taxes due.
You know the IRS might be investigating you through official mail (first contact), phone calls (often with automated messages to IRS.gov), or in-person visits, but signs of a criminal probe include contact with IRS Criminal Investigation (CI) agents, subpoenas to you or your bank, questions to your accountant/bank, unusual account activity (freezing/refusing transactions), or agents suddenly going silent after an audit. Key indicators are official IRS letters, contact from CI special agents, third-party inquiries, and formal summonses for records, signaling serious scrutiny beyond a simple audit.
The government has no legal obligation to notify you that you're under investigation. There is no constitutional right to know that prosecutors are building a case against you.
Remember, you will be contacted initially by mail. The IRS will provide all contact information and instructions in the letter you receive. If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as income, expenses, and itemized deductions.