Take this short quiz to understand what your IRS letter means and whether you may qualify for relief or payment options.
Many people assume the first step after receiving an IRS letter is to call the IRS directly.
What most people don't realize is that the IRS is not on your side. The IRS is a debt collector. Their job is to gather information, enforce payment, and collect the maximum amount legally possible.
Anything you say during a call is documented and becomes part of your IRS record. The way information is presented can directly impact penalties, payment demands, bank levies, wage garnishments, and future enforcement actions.
This is why it's often recommended to speak with a qualified Tax Advisor before contacting the IRS.
Tax Advisors are experts in knowing how to present a case to the IRS and how to access relief programs and provisions within the tax code that are not proactively explained during standard IRS calls.
For a short period of time, we've made this short quiz available to help individuals see what their IRS letter means and whether they may qualify for a relief or resolution program.
Before taking your next step, click Start Quiz below to get clarity.
Understand what type of letter you received
Get clarity on what the IRS is asking
See what relief programs may apply
Understanding your IRS letter is the first step toward resolving any tax issues. Here's a breakdown of the most common IRS notices.
The IRS CP14 notice is typically the first letter the IRS sends when you have an unpaid balance on your tax account. It informs you of the amount you owe, including penalties and interest that have accrued.
What to do: You generally have 21 days to pay the balance or contact the IRS. If you can't pay in full, you may qualify for a payment plan or other relief options. Speaking with a tax professional before responding can help protect your interests.
IRS notice CP575 is sent to confirm that your Employer Identification Number (EIN) has been assigned. This is an informational notice and does not indicate that you owe any taxes.
What to do: Keep this letter in a safe place as proof of your EIN. You'll need your EIN for tax filings, opening business bank accounts, and hiring employees.
An IRS CP565 notice confirms that your Individual Taxpayer Identification Number (ITIN) has been assigned or renewed. Like the CP575, this is an informational notice.
What to do: Store this notice securely. Your ITIN is required for filing tax returns if you don't have a Social Security Number.
A general Notice of Balance Due from the IRS indicates that you have an outstanding tax liability. This could be for income tax, self-employment tax, penalties, or interest.
What to do: Review the notice carefully to verify the amount and tax year. If correct, consider payment options. If you believe there's an error, you have the right to dispute it.
A Final Notice or Notice of Intent to Levy is a serious IRS letter indicating they intend to seize your assets, wages, or bank accounts if you don't respond. This typically comes after previous notices were ignored or unresolved.
What to do: Act immediately. You typically have 30 days to respond or request a Collection Due Process (CDP) hearing. It's strongly recommended to consult a tax professional before contacting the IRS, as how you respond can significantly impact the outcome.
Not sure which letter you received? Take our quick quiz to find out.