Understanding Your IRS Notice or Audit Letter

About Your Notice

If you receive a letter or notice from the IRS, it will explain the reason for
the correspondence and provide instructions. Many of these letters and notices can be dealt with simply, without having to call or visit an IRS office.

The notice you receive covers a very specific issue about your account or
tax return. Generally, the IRS will send
 a notice if it believes you owe additional tax, are due a larger refund, if there is a question about your tax return or a need for additional information. .

IRS Notice Redesign

Currently, the IRS is in the process
 of redesigning and revising its correspondence with taxpayers for clarity, effectiveness and efficiency.
 To start, the redesign affects nine
notices. The new format includes a
 plain language explanation of the nature of the correspondence,
clearly states what action the
taxpayer must take and presents a clear, clean design.
 

Redesigned Notices

Notice Number Description Topic
CP02H You owe a balance due as a result of amending your tax return to show receipt of a grant received as a result of Hurricane Katrina, Rita or Wilma. Balance Due
CP03A You received a tax credit (called the First-Time Homebuyer Credit) for a home you purchased. This notice informs you on how to repay it.  
CP03B You received a tax credit (called the First-Time Homebuyer Credit) for a home you purchased. This notice informs you that you don't have to repay the credit as long as the home remains your main home for at least three years after you purchase it. It also explains situations where a home stops being a main home.  
CP08 You may qualify for the Additional Child Tax Credit and be entitled to some additional money. Additional Child Tax Credit
CP10 We made a change(s) to your return because we believe there's a miscalculation. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year. Change To
Your
 Estimated
Tax Credit Amount
CP10A We made a change(s) to your return because we believe there's a miscalculation involving your Earned Income Credit. This change(s) affected the estimated tax payment you wanted applied to your taxes for next year. Change To
Your
Estimated
Tax Credit Amount
CP11 We made changes to your return because we believe there’s a miscalculation. You owe money on your taxes as a result of these changes. Balance Due
CP11A We made changes to your return because we believe there's a miscalculation involving your Earned Income Credit. You owe money on your taxes as a result of these changes. Balance Due
CP11M We made changes to your return involving the Making Work Pay and Government Retiree Credit. You owe money on your taxes as a result of these changes. Balance Due
CP21A We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s). Balance Due
CP21B We made the change(s) you requested to your tax return for the tax year specified on the notice. You should receive your refund within 2-3 weeks of your notice. Refund
CP21C We made the change(s) you requested to your tax return for the tax year specified on the notice. You're not due a refund nor do you owe any additional amount. Your account balance for this tax form and tax year is zero. Even Balance
CP21E As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes. Balance Due
CP21I We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes. Balance Due
CP22A We made the change(s) you requested to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of the change(s). Balance Due
CP22E As a result of your recent audit, we made changes to your tax return for the tax year specified on the notice. You owe money on your taxes as a result of these changes. Balance Due
CP22I We made changes to your tax return for the tax year specified on the notice for Individual Retirement Arrangement (IRA) taxes. You owe money on your taxes as a result of these changes. Balance Due
CP31 Your refund check was returned to us, so you need to update your address. Refund
CP45 We were unable to apply your overpayment to your estimated tax as you requested. Overpayment
CP53 We can't provide your refund through direct deposit, so we're sending you a refund check by mail. Direct
Deposits
CP120 You need to send us documentation of your tax-exempt status. Tax
 Exemptions
CP130 Your tax return filing requirements may have changed: You may no longer need to pay the Alternative Minimum Tax. Filing Requirements
CP139 Your tax return filing requirements may have changed: You may no longer need to file Form 941 and Form 940. Filing Requirements
CP152 We have received your return. Confirmation
 of Return Receipt
CP153 We can't provide you with your refund through a direct deposit, so we're sending you a refund check/credit payment by mail. Refund
CP166 We were unable to process your monthly payment because there were insufficient funds in your bank account. Payment
Process
CP178 Your tax return filing requirements may have changed: You may no longer owe excise tax. Filing Requirements
CP231 Your refund or credit payment was returned to us and we need you to update your current address. Address
Update
Needed
CP276A We didn't receive a correctly completed tax liability schedule. We normally charge a Federal Tax Deposit (FTD) penalty when this happens. We decided not to do so this time. FTD Penalty
CP276B We didn't receive the correct amount of tax deposits. We normally charge a Federal Tax Deposit penalty when this happens. We decided not to do so this time. FTD Penalty

 

Other Notices and Letters

Notice or Letter Number Title
CP 12 Changes to Tax Return, Overpayment
CP 14 Balance Due
CP 23 Estimated Tax Discrepancy, Balance Due
CP 49 Overpaid Tax Applied to Other Taxes You Owe
CP 57 Notice of Insufficient Funds
CP 88 Delinquent Return Refund Hold
CP 90/CP 297 Final Notice - Notice of Intent to Levy and Notice of Your Right to a Hearing
CP 297A Notice of Levy and Notice of Your Right to a Hearing
CP 91/CP 298 Final Notice Before Levy on Social Security Benefits
CP 161 Request for Payment or Notice of Unpaid Balance, Balance Due
CP 501 Reminder Notice - Balance Due
CP 503 Second Request Notice - Balance Due
CP 504 Final Notice - Balance Due
CP 521 Installment Agreement Reminder Notice
CP 523 Notice of Default on Installment Agreement
CP 2000 Notice of Proposed Adjustment for Underpayment/Overpayment
Letter 0484C Collection Information Statement Requested (Form 433F/433D); Inability to Pay/Transfer
Letter 0549C Balance Due on Account is Paid
Letter 668D(LP 68) We released the taxpayer's levy.
Letter 0681C Proposal to Pay Accepted
Letter 0757C Installment Privilege Terminated
Letter 1058 (LT 11) Final Notice prior to levy; your right to a hearing
Letter 1615 (LT 18) Mail us your overdue tax returns.
Letter 1731 (LP 64) Please help us locate a taxpayer.
Letter 1737 (LT 27) Please complete and site Form 433F, Collection
Information Statement.
Letter 1961C Installment Agreement for Direct Debit 433-G
Letter 1962C Installment Agreement Reply to Taxpayer
Letter 2050 (LT 16) Please call us about your overdue taxes or tax return.
Letter 2257C Balance Due Total to Taxpayer
Letter 2271C Installment Agreement for Direct Debit Revisions
Letter 2272C Installment Agreement Cannot be Considered
Letter 2273C Installment Agreement Accepted: Terms Explained
Letter 2318C Installment Agreement: Payroll Deduction (F2159) Incomplete
Letter 2357C Abatement of Penalties and Interest
Letter 2603C Installment Agreement Accepted - Notice of Federal
Tax Lien Will be Filed
Letter 2604C Pre-assessed Installment Agreement
Letter 2761C Request for Combat Zone Service Dates
Letter 2789C Taxpayer Response to Reminder of Balance Due
Letter 2840C CC IAPND Installment Agreement Confirmation
Letter 3030C Balance Due Explained:Tax/Interest Not Paid
Letter 3127C Revision to Installment Agreement
Letter 3217C Installment Agreement Accepted: Terms Explained
Letter 3228 (LT 39) Reminder notice.
Letter 4903 (LT 26) We have no record of receiving your tax returns.
Letter LP 47 Address Information Request
Letter LP 59 Please contact us about the taxpayer levy.

 

Eight Things to Know If You Receive an IRS Notice or Letter

Read about eight things every taxpayer should know about IRS notices.

How To Identify Your Notice

The notice number prints on the top of the first page of all our
notices and on the lower left-hand side of the tear-off stub included with most of them. That number identifies the message we deliver in every notice.
While the contents may vary somewhat, every notice with the same number has the same basic purpose.

What If My Notice Isn't Listed

You'll find useful information here about many of the notices we send,
 including the purpose of the notice, the reason we send it, and a list of enclosures we might include with it. There's also sample content for
each.
Since parts of our notices vary depending on account conditions, the samples may not exactly match the notices we mail. The basic
message, though, will be the same.

  • Individual Filer Notices
    Notices we send about Form 1040, 1040A, or 1040EZ, or any schedules, forms, or attachments included with it are Individual
    Filer Notice.
  • Business Filer Notices
    Notices we send about business-related tax forms such as Forms
    941, 1065, and 1120, are Business Filer Notices.

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