If you’ve ever received mail from the Internal Revenue Service (IRS), you know how confusing — and stressful — it can feel. But in most cases, a notice or letter simply means the IRS needs clarification, correction, or confirmation. It does not always mean you’re being audited or penalized.
This guide will help you understand why the IRS sends letters, decode common letter and notice codes, and explain the best way to respond — without panic.
Why the IRS Sends Notices and Letters
The IRS sends a notice or letter when there’s an issue or update with your tax account. Common reasons include:
- Requested additional information or documentation (income, dependents, deductions)
- Identity verification required (common during early filing season)
- Mathematical or data-match errors on your return (income mismatch, employer wages not matching what you reported)
- Adjustments to refund or taxes owed (overpayment corrected, underpayment identified)
- Account updates: changes in address, payment reminders, or debt collection notices
Key point: a notice is the IRS’s way of staying in touch — not necessarily a sign of trouble.
IRS Notices & Letters – Quick Reference
Here is a breakdown of common IRS notices, what they mean, and what to do next. Clicking any notice code will take you to the official IRS “Understanding Your IRS Notice or Letter” page, where you can search or navigate by your specific notice number.
Identity, Account & ITIN Notices
- CP01 The IRS verified your identity theft claim and added a protection indicator to your account. Action: Keep this for your records; no response needed.
- CP01H SSN on your return belongs to a deceased person, so your return is locked. Action: Contact the Social Security Administration to correct any errors.
- CP54B Your return shows a different name/ID than IRS records. Action: Contact the IRS to resolve.
- CP565 You have been issued an ITIN. Action: Use it for tax filings.
- CP566 The IRS needs more information for your ITIN application. Action: Provide the requested information.
- CP567 Your ITIN application was rejected. Action: Contact the IRS for next steps.
Return Review, Math & Adjustments
- CP05 The IRS is reviewing your return for accuracy. Action: Wait 45 days; contact the IRS if you do not hear back or get your refund.
- CP05A The IRS needs documentation for income, withholding, credits, or business income. Action: Submit the requested documents.
- CP10 Your return was adjusted due to a miscalculation. Action: Review changes and follow the next steps in the notice.
- CP10A Changes were made to your Earned Income Tax Credit due to a miscalculation. Action: Review and follow instructions if you disagree.
- CP11 A miscalculation means you owe money. Action: Contact the IRS within 60 days if you disagree.
- CP12 The IRS corrected a miscalculation on your return. Action: No action if you agree; contact the IRS if you disagree.
- CP13 A miscalculation resulted in a zero balance—no refund or payment due. Action: No response needed.
- CP16 The IRS adjusted your return due to a miscalculation. Action: Contact the IRS within 60 days if you disagree.
- CP18 You may have incorrectly claimed deductions or credits. Action: No action needed unless IRS requests documentation.
- CP19 Incorrect deductions/credits mean you owe taxes. Action: Complete and return the response form.
- CP20 Incorrect deductions/credits reduced your refund. Action: Review and respond if you disagree.
- CP268 A miscalculation means a potential overpayment. Action: Review and contact the IRS if needed.
Credits – EITC, CTC & Related
- CP03C You need to report a change in home ownership for the First-Time Homebuyer Credit. Action: File the required form as instructed.
- CP07 Your refund is on hold for a review of claimed benefits. Action: Wait 6–12 weeks if you owe no other debts; otherwise, contact the IRS.
- CP08 You may qualify for the Additional Child Tax Credit. Action: Complete and submit the Additional Child Tax Credit Worksheet and Form 1040 Schedule 8812.
- CP09 You may be eligible for the Earned Income Credit (EIC). Action: Sign and return the worksheet if eligible.
- CP27 You may be eligible for the Earned Income Credit. Action: Complete and return the worksheet if eligible.
- CP74 You are re-certified for the Earned Income Credit; refund may issue if no other debts. Action: No response needed.
- CP75 The IRS is auditing your Earned Income Credit and needs documentation. Action: Submit the requested documents.
- CP75C You are banned from claiming the Earned Income Credit this year. Action: Contact the IRS if you disagree.
- CP75D The IRS is auditing your income/withholding and needs documentation. Action: Submit the requested documents.
Balance Due, Penalties & Installments
- CP14 You owe taxes (balance-due notice). Action: Pay by the due date or set up a payment plan.
- CP14I You owe taxes or penalties on your IRA. Action: Pay or contact the IRS.
- CP15B You owe a Trust Fund Recovery Penalty for unpaid employment/excise taxes. Action: Pay by the due date or explore payment options.
- CP30 You owe a penalty for underpaying estimated taxes. Action: Pay or contact the IRS.
- CP30A The underpayment penalty was adjusted or removed. Action: Review and contact the IRS if needed.
- CP57 Installment payment failed due to insufficient funds; a penalty was applied. Action: Pay or set up a new plan.
- CP71 Reminder of taxes, penalties, and interest owed. Action: Pay or set up a payment plan.
- CP160 You owe taxes, penalties, and interest. Action: Pay or set up a payment plan.
- CP161 You have an unpaid tax balance. Action: Verify payments and pay or arrange a payment plan.
- CP163 Reminder for “currently not collectible” status with owed taxes. Action: No immediate action; monitor your status.
- CP166 Installment payment failed due to insufficient funds. Action: Pay or set up a new plan.
- CP521 Reminder of an installment payment due. Action: Pay by the due date.
- CP523 Your payment plan may be terminated for defaulting. Action: Pay to avoid termination and fees.
Missing Returns & Frivolous Filings
- CP59 The IRS has no record of your prior tax return. Action: File immediately or explain why you do not need to file.
- CP63 Your refund is on hold due to unfiled returns. Action: File returns or provide an explanation.
- CP72 You may have filed a frivolous return with no legal basis. Action: Contact the IRS to resolve.
- CP81 The refund statute of limitations is expiring. Action: File your return or contact the IRS.
- CP88 Your refund is on hold due to unfiled returns and owed taxes. Action: File returns or explain.
- CP515I / CP516 / CP518I / CP518 Final reminder to file missing tax returns. Action: File immediately or explain why you do not need to.
Refund, Address & Deposit Problems
- CP31 Your refund check was returned due to an incorrect address. Action: Update your address on IRS.gov.
- CP42 Part of your refund was applied to your spouse’s debts. Action: Contact the IRS if you disagree.
- CP45 The IRS could not apply an overpayment to your estimated taxes. Action: Review and contact the IRS.
- CP49 Your entire refund was used to pay a tax debt. Action: Review and contact the IRS if needed.
- CP53 Direct deposit failed; a refund check was mailed. Action: No action usually needed.
- CP53A Direct deposit failed; a refund will be reissued in 8–10 weeks. Action: Contact the IRS if no refund or follow-up in 10 weeks.
- CP108 The IRS cannot apply a payment to the correct form/year. Action: Confirm or redirect the payment.
- CP112 A miscalculation means you are due a refund. Action: No response needed.
- CP231 Your refund was returned; your address must be updated. Action: Update your address on IRS.gov.
Levy, Collection & Enforcement
- CP504 / CP504B You owe taxes; the IRS may levy your state refund or property. Action: Pay immediately or request a hearing.
- CP90 The IRS plans to levy assets for unpaid taxes. Action: Pay or request a Collection Due Process hearing.
- CP90C A levy has been placed; you can request a hearing. Action: Act quickly to appeal.
- CP91 The IRS plans to levy 15% of your Social Security benefits. Action: Pay or request a hearing.
- CP297 / CP297A / CP297C The IRS plans to levy or has levied assets for unpaid taxes. Action: Pay or request a Collection Due Process hearing.
- CP298 The IRS plans to levy Social Security benefits for unpaid taxes. Action: Pay or request a hearing.
- CP501 You owe a balance on your tax account. Action: Pay by the due date or set up a payment plan.
Business, Organization & E-File
- CP120A Your organization’s tax-exempt status was revoked for not filing Form 990 for three years. Action: Contact the IRS.
- CP141C Your return is late and missing information. Action: Send the required information and voucher.
- CP141L Your return was filed late. Action: Pay the amount due or send a written explanation.
- CP254 You filed a paper return but must file electronically. Action: File electronically to avoid penalties.
- CP255 The IRS needs information to finalize your private foundation termination. Action: Provide the requested information.
- CP259 You did not file a required business tax return. Action: File immediately.
- CP261 Your Form 2553 (S Corporation Election) was approved. Action: Keep the letter and file Form 1120S.
- CP279 / CP279A Your Qualified Subchapter S Subsidiary election was accepted. Action: Keep the notice for your records.
- CP282 Your partnership may owe withholding tax on foreign partners’ income. Action: Check with a tax professional.
- CP283C You owe a penalty for a late/incomplete Form 8955-SSA. Action: Pay or contact the IRS.
Proposed Changes, Audits & Deficiencies
- CP21A Changes you requested resulted in taxes owed. Action: Pay or contact the IRS if you disagree.
- CP21B Changes you requested mean a refund is coming in 2–3 weeks. Action: No response needed.
- CP21C Changes you requested result in a zero balance. Action: No response needed.
- CP21E Audit changes were made to your return. Action: Contact the IRS if you disagree.
- CP22A Changes you requested mean you owe money. Action: Pay or contact the IRS.
- CP2000 Your return does not match IRS records (income reporting/payment error). Action: Review, agree, or submit supporting documents.
- CP2005 The IRS accepted your information; no changes made. Action: No response needed.
- CP2006 The IRS received your information and will follow up. Action: Wait for their decision.
- CP2030 Proposed changes to your corporate return. Action: Pay, set up a payment plan, or send a signed statement of disagreement.
- CP2057 You must file an amended return due to new information. Action: File the amendment.
- CP2566 / CP2566R The IRS calculated your taxes due to an unfiled return. Action: File your return or accept the proposed changes.
- CP3219A IRS records differ from your return, affecting taxes (Notice of Deficiency). Action: Agree and sign Form 5564 or send supporting documents.
- CP3219B Statutory Notice of Deficiency; taxes may change. Action: Agree and sign Form 4089 or petition the Tax Court within 90 days.
Special Situations & Miscellaneous
- CP04 You or your spouse may qualify for a combat zone tax deferment. Action: Send requested documentation to confirm eligibility.
- CP18 You may have incorrectly claimed deductions or credits. Action: Wait for any further documentation request from the IRS.
- CP130 You may no longer need to pay the alternative minimum tax. Action: Review your filing requirements.
- CP141C / CP141L Your return is late and/or missing information. Action: Provide missing details and pay as directed.
Things You Should Always Do If You Receive an IRS Letter
- Read the letter carefully and fully. The IRS explains exactly why it’s contacting you.
- Check the code (CP or LTR number). Use it to look up the issue on IRS.gov.
- Do not ignore it. Some letters require action — missing response deadlines can lead to penalties, withholding of refunds, or levies.
- Do only what’s asked — don’t volunteer extra info. When responding, provide exactly what’s requested (supporting forms, corrected data, ID verification).
- Use official IRS contact methods. The IRS first sends letters by mail — they don’t contact you via email, social media, or phone demanding immediate payment.
- Keep records. Save copies of the letter, your response, and delivery confirmation if mailing.
When a Notice Doesn’t Mean the Worst
- It’s not always an audit. Most letters are about corrections, income mismatches, or identity checks — not in-depth audits.
- Sometimes it’s just informational. The IRS may send letters to alert you that a refund changed or a return was adjusted. No action may be needed.
- Many issues are resolvable quickly. Once you supply correct information or verify identity, the IRS usually proceeds with refund or adjustment processing.
What to Do If You’re Unsure or Think Something’s Wrong
- Confirm that the letter is real. Use the IRS’s official “how to know it’s the IRS” page.
- Contact the agency listed in the notice — not a third-party collection call.
- If identity theft is involved, follow IRS guidance for protection (IP PIN, verification, etc.).
- For complicated issues (income mismatches, audit, significant amounts owed), consider consulting a qualified tax professional.
Getting a letter from the IRS doesn’t automatically mean serious trouble. In many cases, it’s simply the IRS trying to resolve a mismatch, request verification, or fix an error. The key is to remain calm, read the letter carefully, respond promptly and appropriately, and use trusted IRS resources. Dealing with notices properly helps you avoid penalties, delays, and worst-case scenarios — and keeps your refunds or filings on track.
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