IRS Notices Explained: Bills, Audits, Levies and Liens
When a federal tax balance goes unpaid, the IRS usually sends a series of letters: a first bill (CP14), two reminders (CP501 and CP503), a notice of intent to levy (CP504), and a final notice with a right to a hearing (LT11 or Letter 1058). A second group covers audits and proposed changes: CP2000, Letters 566, 525 and 950, and the CP3219A notice of deficiency. A third covers the levy and lien forms themselves, federal payment levies, and the notice that a payment plan is in default. A fourth covers annual reminders, collection contact letters, the trust fund recovery penalty and passport certification. Each guide explains one letter, its deadline and what the IRS says can happen next.
The notice code is printed in the upper right corner of an IRS letter. Find yours below. Not every taxpayer receives every letter in this order, so the date and deadline printed on your own notice always control.
Already holding a notice? Type its code into the IRS notice lookup to go straight to its guide and deadline.
The balance-due notices, in order
1. CP14: the first bill
The IRS says: “We sent you this notice because you owe money on unpaid taxes.” On interest, it answers its own question about whether interest is charged: “Not if you pay the full amount you owe by the date on the notice.”
2. CP501: the first reminder
“This notice is a reminder that you owe a balance on one of your tax accounts.” It also warns that “we can file a notice of federal tax lien.”
3. CP503: the second reminder
“This notice is your second reminder that you still owe a balance on one of your tax accounts.” The next letter in the sequence is the CP504 notice of intent to levy.
4. CP504: notice of intent to levy
“This notice is your Notice of Intent to Levy (Internal Revenue Code section 6331 (d)).” With it, the IRS says “we can seize (“levy”) any state tax refund to which you’re entitled.” For other property, the IRS explains that it “cannot levy with just this notice.”
5. LT11 or Letter 1058: final notice and hearing rights
“We intend to seize your property or rights to property.” The IRS adds: “We can attach a levy to your wages or bank accounts up to the amount owed.” This is the letter that opens a Collection Due Process hearing request: “You have 30 days from receipt of an LT11 or L-1058 to request a Collection Due Process (CDP) hearing.”
Audit and proposed-change notices
These letters come before any bill. They propose changes to a return, and each has its own reply date and appeal route.
CP2000: proposed changes from mismatched income
The IRS says this notice “isn’t a bill and your response may be required.” Tax Topic 652 calls it “a proposal to adjust your income, payments, credits, and/or deductions.”
Letter 566: an audit by mail begins
The Taxpayer Advocate Service calls this letter “your notification that your tax return has been selected for an audit,” with a list of the items being questioned and a request for documents.
Letter 525: proposed changes after a mail audit
IRS Appeals describes it as the letter “with a computation report of proposed adjustments to your tax return,” and says a protest goes in “within 30 days from the date of this letter.”
Letter 950: the 30-day letter after a field audit
The Internal Revenue Manual assigns Letter 950 to “straight deficiency, or mixed deficiency and overassessment cases in Field Examination,” with an offer of an Appeals conference.
CP3219A: the statutory notice of deficiency
The Internal Revenue Manual calls it “the legal notice in which the Commissioner determines the taxpayer’s tax deficiency.” Under 26 U.S.C. § 6213(a), a Tax Court petition is due within 90 days of mailing, or 150 days if addressed outside the United States.
Levy, lien and payment plan notices
Some of these are served on an employer or bank rather than mailed to the taxpayer. Each guide explains who receives the document and what it allows.
Form 668-W: levy on wages
Served on an employer or other payer. Under 26 U.S.C. § 6331(e), a wage levy is continuous “from the date such levy is first made until such levy is released under section 6343.”
Form 668-A: levy on a bank account or other property
The IRS says it “generally uses Form 668-A to levy other property that a third party is holding.” Under § 6332(c), a bank surrenders deposits “only after 21 days after service of levy.”
Form 668(Y): Notice of Federal Tax Lien
The public lien notice filed in a state or county office. Publication 1468 says its dollar figure “is the assessed amount at the time of filing the document,” and § 6320 requires the hearing notice “not more than 5 business days after the day of the filing of the notice of lien.”
CP90 and CP297: levy on federal payments
The Federal Payment Levy Program sends a “Final Notice – Notice of Intent to Levy and Notice of Your Right to a Hearing, CP 90 or CP 297” when a federal payment matches a tax debt, and transmits the levy if it does not hear back “within 30 days from the date of the final notice.”
CP523: payment plan default
The IRS says this notice means it is “informing you of the intent to terminate your installment agreement and seize (levy) your assets,” and asks for contact “no later than 30 days from the date of the notice.”
Reminders, contact letters, penalties and passports
These letters can arrive at any stage of an open balance. Each guide explains what the IRS says the letter means and what it asks for.
CP22A: balance due after a return change
The IRS says: “We sent you this notice because we made the changes to your tax return. You owe because of the changes.”
CP71: the annual balance reminder
Under 26 U.S.C. § 7524, “Not less often than annually, the Secretary shall send a written notice to each taxpayer who has a tax delinquent account of the amount of the tax delinquency as of the date of the notice.”
LT16: please contact the IRS
The IRS says an LT16 arrives because “we’re trying to collect unpaid taxes from you and/or our files show we’re missing tax returns from you.”
Letter 1153: proposed trust fund recovery penalty
A proposed personal penalty for unpaid withheld payroll taxes under 26 U.S.C. § 6672. The IRS says: “You have 60 days (75 days if this letter is addressed to you outside the United States) from the date of this letter to appeal our proposal.”
CP508C: passport certification
The IRS says it “has notified the U.S. Department of State of your seriously delinquent federal tax debt certification. Your passport may be revoked and your application for a new passport or passport renewal will be denied.”
Holding one of these letters?
Free, confidential evaluation.
Or call (202) 968-1121
Appeal rights along the way
For the CP501, CP503 and CP504 notices, the IRS describes an appeal route before any levy: “Request an appeal under the Collection Appeals Program (CAP) before collection action takes place by following the instructions on your notice.”
The LT11 or Letter 1058 adds the formal Collection Due Process hearing. Its deadline is the one most worth marking on a calendar, and the LT11 guide explains how the 30 days are counted and what a timely request does.
Related guides
Talk to an IRS tax attorney about your notice
A free, confidential evaluation is the first step. No cost and no obligation.
Sources
- IRS: Understanding your CP14 notice
- IRS: Understanding your CP501 notice
- IRS: Understanding your CP503 notice
- IRS: Understanding your CP504 notice
- IRS: Understanding your LT11 notice or Letter 1058
- IRS: Collection Due Process FAQs
- IRS: Understanding your CP2000 notice
- IRS Tax Topic 652, Notice of underreported income, CP2000
- Taxpayer Advocate Service: Initial contact letter for an audit
- IRS Appeals: Letters and notices offering an appeal opportunity
- IRM 4.10.8, Report Writing
- IRM 4.19.3, IMF Automated Underreporter Program
- 26 U.S.C. § 6213, Restrictions applicable to deficiencies
- 26 U.S.C. § 6331, Levy and distraint
- 26 U.S.C. § 6332, Surrender of property subject to levy
- 26 U.S.C. § 6320, Notice and opportunity for hearing upon filing of notice of lien
- IRS: Levies on employees, vendors, customers or other third parties
- IRS Publication 1468, Guidelines for Processing Notice of Federal Tax Lien Documents
- IRS: Federal Payment Levy Program
- IRS: Understanding your CP523 notice
- IRS: Understanding your CP22A notice
- 26 U.S.C. § 7524, Annual notice of tax delinquency
- IRS: Understanding your LT16 notice
- 26 U.S.C. § 6672, Failure to collect and pay over tax
- IRS: Employment taxes and the trust fund recovery penalty
- IRS: Understanding your CP508C notice
IRS Circular 230 Disclosure: To ensure compliance with Treasury Department rules governing tax practice, any tax information contained on this website was not written and is not intended to be used, and cannot be used, for the purpose of avoiding any federal tax penalty. You should consult a licensed tax professional regarding your individual situation.
Results described on this website are not a guarantee, warranty, or prediction of the outcome of any tax matter. Every situation is different. Prior results do not guarantee a similar outcome. Article content reflects general information about federal tax procedure as of the last reviewed date and may not reflect subsequent changes in IRS policy, regulations, or case law.