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IRS correspondence can range from a simple balance-due notice to a final warning before collection action. The notice number, usually found in the upper right-hand corner of the document, tells you where your case may be in the process and what action the IRS expects you to take.
Use this glossary to find your IRS notice or letter and understand what it means, how serious it is, and what you should do next.
An issue needs to be addressed, but the notice generally does not indicate immediate collection action.
Your tax problem has escalated, or the IRS is warning about possible collection or enforcement action.
A legal or appeal deadline may be running, collection action is imminent or underway, or important taxpayer rights may expire if you don’t respond.
Letter 950: 30-Day Letter I received IRS Letter 950. What does it mean?
The IRS is proposing changes that could increase the amount of tax you owe. You generally have 30 days to agree with the proposed changes or request an appeal.
What should I do?
Review the proposed adjustment carefully and respond by the deadline if you disagree. Ignoring the letter can allow the proposed tax assessment to move forward.
RELATED: IRS Appeals | Tax Debt Resolution
Letter 1058: Final Notice of Intent to Levy I received IRS Letter 1058. What does it mean?
The IRS says you have unpaid taxes and intends to levy your property or rights to property. This is a Final Notice of Intent to Levy and provides Collection Due Process rights. This notice is similar to the Final Notice of Intent to Levy LT11; Letter 1058 and LT11 are issued by different departments of the IRS.
What should I do?
Act immediately. You generally have 30 days to request a Collection Due Process hearing. Missing that deadline can significantly limit your appeal rights.
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Letter 3172: Notice of Federal Tax Lien Filing I received IRS Letter 3219. What does it mean?
The IRS has determined that you owe additional tax. This is commonly called a 90-Day Letter and gives you the right to challenge the proposed deficiency in U.S. Tax Court before the tax is assessed.
What should I do?
Do not miss the deadline printed on the notice. If you disagree with the IRS determination, you generally have 90 days to petition the Tax Court (150 days in certain cases involving taxpayers outside the United States).
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Letter 3219: Statutory Notice of Deficiency I received IRS Letter 3172. What does it mean?
The IRS has filed a Notice of Federal Tax Lien because of unpaid taxes. The lien establishes the government’s public claim against your property and rights to property.
What should I do?
Act immediately. Letter 3172 provides a limited period to request a Collection Due Process hearing if you want to challenge the lien filing or propose a collection alternative.
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Letter 3391: 30-Day Non-Filer Letter I received IRS Letter 3391. What does it mean?
The IRS believes you were required to file one or more tax returns that it has not received. The letter may include proposed tax adjustments based on information available to the IRS.
What should I do?
Address the missing returns and proposed adjustments promptly. Unfiled returns can eventually result in IRS assessments and collection activity.
RELATED: Delinquent Tax Returns | Back Tax Filing | Tax Debt Resolution
LT11: Final Notice of Intent to Levy I received an LT11. What does it mean?
The IRS says you have unpaid taxes and intends to seize property or rights to property. LT11 is a Final Notice of Intent to Levy and Notice of Your Right to a Hearing.
What should I do?
Act immediately. You generally have 30 days to request a Collection Due Process hearing. This is one of the most serious collection notices the IRS sends before levy action.
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LT14: You Have Past-Due Taxes I received an LT14. What does it mean?
The IRS says you have a past-due tax balance and is requesting payment.
What should I do?
Verify the balance and address it before the account moves further into collections. If you cannot pay in full, determine whether you qualify for another resolution option.
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LT16: Unpaid Taxes or Unfiled Returns I received an LT16. What does it mean?
The IRS is trying to resolve unpaid taxes, missing tax returns, or both. Your account is already in the collection system and requires attention.
What should I do?
Respond promptly. If returns are missing, filing requirements generally need to be addressed before the IRS will consider many tax resolution options.
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LT17: Balance Due, Online Action Requested I received an LT17. What does it mean?
The IRS says you have an unpaid balance and is directing you to take action through its online services.
What should I do?
Review the balance and resolve it or make payment arrangements before collection activity escalates.
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LT18: Overdue Tax Returns I received an LT18. What does it mean?
The IRS is requesting one or more overdue tax returns.
What should I do?
File the required returns or determine why the IRS believes they are missing. Continued non-filing can lead to additional enforcement and IRS-prepared substitute returns.
RELATED: Delinquent Tax Returns | Back Tax Filing
LT19: Outstanding Tax Balance I received an LT19. What does it mean?
The IRS says you have an outstanding tax balance and is requesting payment.
What should I do?
Confirm the balance and address it before your account progresses further through collections.
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LT24: Payment Proposal Received I received an LT24. What does it mean?
The IRS has received a proposal from you regarding payment of your tax debt.
What should I do?
Read the letter carefully for any additional information or action the IRS requires and comply with all deadlines.
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LT26: File Your Tax Return Immediately I received an LT26. What does it mean?
The IRS says a required tax return has not been filed and is demanding that you file it.
What should I do?
Address the unfiled return immediately. Continued non-filing can lead to the IRS determining the tax for you and pursuing collection.
RELATED: Delinquent Tax Returns | Back Tax Filing
LT27: Complete Your Online Payment Agreement I received an LT27. What does it mean?
The IRS is reminding you that you started an Online Payment Agreement request but did not complete it.
What should I do?
Complete the application if a payment agreement is still the appropriate resolution for your situation.
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LT33: Payment Did Not Cover Your Balance I received an LT33. What does it mean?
The IRS received a payment, but it was not enough to satisfy your outstanding tax balance.
What should I do?
Determine the remaining amount due and resolve the balance before additional collection activity occurs.
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LT38: Collection Reminder I received an LT38. What does it mean?
The IRS is reminding you that you have an outstanding tax balance and that collection activity on your account is continuing or resuming.
What should I do?
Do not treat this as a routine reminder. Review your account and determine how to resolve the balance before the IRS moves to stronger collection measures.
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LT39: Collection Reminder Notice I received an LT39. What does it mean?
The IRS is reminding you that you still have an unresolved tax debt and is requesting action.
What should I do?
Address the balance promptly. Continued failure to resolve the account can lead to additional collection notices and enforcement.
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LT40: Possible Third-Party Contact I received an LT40. What does it mean?
The IRS is notifying you that it may contact third parties to obtain information needed to collect your tax debt.
What should I do?
Take the notice seriously. Third-party contact indicates that the IRS is actively gathering information about your finances or assets.
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LT73: Notice of Levy and Right to a Hearing I received an LT73. What does it mean?
The IRS is notifying you of levy action and your right to request a hearing. It is specifically a reminder regarding an intent to levy notice already sent to you such as a LT11, CP90 or Letter 1058.
What should I do?
Act immediately and follow the appeal instructions and deadline stated in the notice.
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LT75: Federal Contractor Levy Notice I received an LT75. What does it mean?
The IRS is pursuing levy action involving a federal contractor and is providing notice of hearing rights. Similar to the LT73 notice, this is a reminder regarding a Federal Contractor Levy Notice already sent to you.
What should I do?
Act immediately. Review the deadline for requesting a hearing and address the underlying tax liability.
RELATED: Business Tax Problems | Tax Levies | IRS Appeals
CP14: Balance Due Notice I received a CP14. What does it mean?
The IRS says you owe money on unpaid taxes. CP14 is generally the first formal balance-due notice after the IRS assesses the tax.
What should I do?
Review the amount and tax period carefully. Pay the balance or determine how you will resolve it before penalties, interest, and collection activity continue to escalate.
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CP22A: Changes to Your Return, Balance Due I received a CP22A. What does it mean?
The IRS made changes to your tax return based on information you or your representative provided, and those changes resulted in tax owed.
What should I do?
Review the changes. If they are correct, address the balance. If they are incorrect, contact the IRS using the instructions on the notice.
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CP23: Estimated Tax Payment Discrepancy I received a CP23. What does it mean?
The IRS found a difference between the estimated tax payments reported on your return and the payments credited to your IRS account. The adjustment resulted in a balance due.
What should I do?
Compare the IRS payment record with your own records. If payments are missing or misapplied, address the discrepancy. If the balance is correct, arrange to resolve it.
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CP49: Refund Applied to Tax Debt I received a CP49. What does it mean?
The IRS used all or part of your federal tax refund to pay an outstanding federal tax debt.
What should I do?
Check whether a balance remains after the refund was applied. If you still owe taxes, the collection process can continue.
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CP90: Final Notice of Intent to Levy I received a CP90. What does it mean?
The IRS intends to levy certain assets because of unpaid taxes and is notifying you of your right to a Collection Due Process hearing. This is similar to a Letter 1058 or LT11 notice.
What should I do?
Act immediately. Follow the notice instructions if you want to request a hearing. The deadline is critical.
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CP91: Intent to Levy Social Security Benefits I received a CP91. What does it mean?
The IRS intends to levy up to 15% of your Social Security benefits to collect unpaid taxes.
What should I do?
Address the tax debt immediately. Depending on your circumstances, payment arrangements, financial-hardship status, or another resolution may be available.
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CP242: State Tax Refund Levy I received a CP242. What does it mean?
The IRS has levied your state tax refund to pay unpaid federal taxes and is notifying you of your right to a hearing.
What should I do?
Review the appeal deadline immediately if you disagree with the levy or underlying collection action.
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CP297: Final Notice of Intent to Levy I received a CP297. What does it mean?
The IRS says previous attempts to collect your unpaid federal taxes have not resolved the debt and intends to levy your property or rights to property. The notice provides Collection Due Process hearing rights. This notice is the tax payer counter part for businesses vs individuals.
What should I do?
Act immediately. You generally have 30 days to request a Collection Due Process hearing.
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CP501: First Balance-Due Reminder I received a CP501. What does it mean?
The IRS is reminding you that you still have an unpaid balance after an earlier request for payment.
What should I do?
Address the balance now. The IRS collection notice sequence becomes progressively more serious if the debt remains unresolved.
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CP503: Second Balance-Due Reminder I received a CP503. What does it mean?
The IRS says it still has not received payment or a response regarding your unpaid tax balance. This is another escalation in the collection process.
What should I do?
Take action before the account progresses to an Intent to Levy notice.
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CP504: Notice of Intent to Levy I received a CP504. What does it mean?
The IRS says you have unpaid taxes and intends to take collection action if the debt isn’t resolved. This is a significant escalation from earlier balance-due notices and should not be ignored. This notice precedes the more serious final notice of levy LT11, Letter 1058 or CP90.
What should I do?
Act quickly. Depending on your situation, you may have options to resolve the debt before further collection action occurs.
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CP504B: Business Notice of Intent to Levy I received a CP504B. What does it mean?
The IRS says your business has unpaid taxes and intends to levy property or rights to property if the balance isn’t resolved. The IRS may also file a Notice of Federal Tax Lien.
What should I do?
Act quickly. Business tax collection can escalate rapidly, particularly when employment taxes are involved.
RELATED: Business Tax Problems | Payroll Tax Debt | Tax Levies | Tax Liens
CP523: Defaulted Installment Agreement I received a CP523. What does it mean?
The IRS says you defaulted on your installment agreement and intends to terminate it. If the agreement is terminated, the IRS can resume collection activity, including liens and levies.
What should I do?
Act immediately to determine why the agreement defaulted and whether it can be reinstated or restructured. The notice also provides appeal rights.
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CP623: Intent to Terminate Installment Agreement I received a CP623. What does it mean?
The IRS is notifying you that your installment agreement is in default and that it intends to terminate the agreement and resume collection.
What should I do?
Address the default before the termination date. Depending on the circumstances, the agreement may be reinstated or another resolution may be necessary.
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CP2000: Proposed Changes for Unreported Income I received a CP2000. What does it mean?
Information reported to the IRS by an employer, bank, brokerage, or another third party doesn’t match information reported on your tax return. The IRS is proposing changes that may result in additional tax.
A CP2000 is not a bill, but ignoring it can eventually result in an assessed tax debt.
What should I do?
Compare the IRS information with your tax return and respond by the date on the notice whether you agree or disagree. Do not automatically pay the proposed amount without first determining whether the IRS adjustment is correct.
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Notice of Federal Tax Lien (NFTL) I learned that the IRS filed a Notice of Federal Tax Lien. What does it mean?
The federal tax lien itself arises when legal requirements are met after tax is assessed and remains unpaid. A Notice of Federal Tax Lien is the public filing that alerts creditors that the government has a legal claim against your property.
What should I do?
Determine which tax periods are included, whether the filing is correct, and whether you still have appeal rights. Depending on the circumstances, a lien may later qualify for release, withdrawal, discharge, or subordination.
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Notice of Levy I received an IRS levy notice or my property has already been levied. What does it mean?
A levy is different from a lien. A lien is the government’s legal claim against property. A levy is the actual seizure of property or income to satisfy a tax debt.
The IRS may levy bank accounts, wages, accounts receivable, Social Security benefits, business assets, and certain other property.
What should I do?
Act immediately. If a levy has already been issued, there may still be circumstances under which it can be released, but timing matters.
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Substitute for Return (SFR) The IRS says it may file a return for me. What does it mean?
If you fail to file a required tax return, the IRS may prepare a Substitute for Return using information available to it. That calculation may not include deductions, credits, exemptions, or other information that could reduce what you owe.
What should I do?
Do not assume the IRS calculation is correct or that filing your own return is no longer possible. Determine which returns are missing and address them before the resulting assessment moves further into collections.
RELATED: Delinquent Tax Returns | Back Tax Filing | Tax Debt Resolution
The IRS uses hundreds of notices and letters, and not every piece of IRS correspondence means the same thing. If you received an IRS notice or letter that isn’t listed here, don’t ignore it. The notice number is generally printed in the upper right-hand corner.
We, at Tax Fighters Inc. can review the notice, explain where you are in the IRS process, and determine what action may still be available.
