Got an IRS letter? Here's what it means

The IRS intends to levy your assets for unpaid tax. You have the right to a Collection Due Process hearing — but the window is short.

What to do: Act now: pay, set up a plan, or file Form 12153 for a CDP hearing (it pauses the levy and preserves appeal rights). This letter is not one to put off.

The IRS intends to take up to 15% of your Social Security benefits toward the tax debt.

What to do: Contact the IRS urgently at the number on the notice: pay or arrange a plan. Note: calling Social Security won't help — the SSA can't stop the levy; only the IRS can.

The official Notice of Intent to Levy: pay IMMEDIATELY or the IRS can take your state tax refund, levy income and bank accounts, and file a lien.

What to do: Pay now — or call now and arrange a plan. At this stage 'I'll think about it this weekend' gets expensive. If the debt is disputed — you need a plan of action, fast.

LT 11 (a.k.a. Letter 1058) is the last letter before enforced collection: the IRS intends to levy your bank accounts, wages and other property, and may file a federal tax lien.

What to do: Within 30 days: pay, set up an Installment Agreement, or file Form 12153 for a Collection Due Process hearing — collection is frozen while it's pending. After 30 days of silence the IRS can take money from your account with no further warning.

You missed installment-agreement payments, and the IRS intends to terminate the plan and move to levy assets.

What to do: You have 30 days from the notice date: make a payment and call — plans can usually be reinstated (sometimes with a fee). Silence = termination + levy.

The IRS found a mistake on your return, fixed it — and now you have a balance due. The amount and deadline are on the notice.

What to do: Agree — pay by the date shown (or set up a payment plan). Disagree — call the number on the notice BEFORE that date, or you lose appeal rights.

A CP 11 variant: the IRS recalculated your Earned Income Credit and you now owe money. The IRS has no dedicated page for this letter.

What to do: Check the recalculation in the letter. Agree — pay by the date shown or set up a plan. Disagree — call before that date.

The most common IRS letter: per their records you underpaid tax. The amount and due date are in the letter.

What to do: Pay by the date shown — then no interest accrues. Can't pay in full — set up a payment plan (it's normal, done online). Disagree — call with your records.

The estimated payments claimed on your return don't match what actually posted to your IRS account. After reconciliation you owe money.

What to do: Compare the payment list in the letter against your bank records. Agree — pay by the date shown. Found a missing payment — call with proof (check, statement).

You asked to apply your overpayment toward next year's taxes, but the IRS couldn't do it (the letter says why).

What to do: Read the reason and correct your own copy. Most importantly — redo this year's estimated payments so you don't underpay (Form 1040-ES).

The name or SSN/ITIN on your return doesn't match IRS records (common after a name change or with ITINs). Your refund is held until resolved.

What to do: Check the name and number against your SSN/ITIN card, complete the enclosed response form and attach document copies. Once verified, the refund is released.

Same family as CP 54B: the name or SSN/ITIN on your return doesn't match IRS records (CP 54E/CP 54Q are siblings). The IRS asks for documents to fix it.

What to do: Check against your SSN/ITIN card, complete the response form from the letter and attach document copies.

A direct-debit payment on your installment plan bounced: not enough money in the account. The IRS has no dedicated page for this letter.

What to do: Fund the account before the next debit — repeated bounces can get the plan terminated plus a penalty. If it's a bigger problem, call the number on the notice early.

A payment was credited to your account by mistake; the IRS removed it — and now you owe that amount.

What to do: Check the date and amount in the letter. If it truly wasn't your payment — pay by the due date or set up a plan. If it WAS yours — call with proof.

The IRS is auditing your return and wants documents for the Earned Income Credit. The EIC/child-credit part of your refund is frozen until done.

What to do: Gather everything on the list and send it all at once — via the upload tool (fastest), fax or mail. No documents — the credits get disallowed and tax recalculated.

Like CP 75 but broader: the IRS wants documents for the EIC, your dependents AND filing status (e.g. Head of Household). CP 75B is the same series.

What to do: Prepare documents for each item listed (birth certificates, proof the kids live with you, etc.), complete the response form and send by fax or mail.

The IRS is holding your refund because a past-year return was never filed — and you may owe for that year.

What to do: File the missing return by the date on the notice (e-file works for the last two years). Already filed or not required to — call and explain.

Employers and banks reported your income to the IRS, and the numbers don't match your return. The IRS PROPOSES a tax change. It's not a bill or a penalty — it's a proposal you can dispute.

What to do: Check every line against your documents (W-2, 1099). Respond by the date on the notice: agree / disagree (with documents). Ignoring it turns the proposal into a real debt.

You didn't respond to the first bill (usually CP 14) — this is the reminder. The debt grows with interest and a late-payment penalty.

What to do: Pay by the date shown or set up a payment plan — it takes minutes online. Wait longer and the IRS can file a tax lien that banks and creditors see.

The IRS has now twice received neither money nor a response. This is the next-to-last step before hard measures.

What to do: Pay in full by the date shown or set up a plan urgently. Next comes intent-to-levy and a tax lien. Disagree with the debt — call immediately.

Someone (possibly you) filed a return with your SSN/ITIN, and the IRS wants to confirm it was you before processing further. If you did NOT file — identity theft is likely.

What to do: Verify per the letter's instructions — online at irs.gov/verifyreturn (you'll need the letter, that year's return and your documents). Didn't file? Say so — the IRS stops the impostor's refund.

The IRS thinks you qualified for the Earned Income Credit but didn't claim it. This letter can mean an extra refund — even if you owe no tax.

What to do: Fill out the enclosed Form 15111 worksheet. If it shows you qualify, send it back (envelope provided, or online within 30 days). The refund check arrives in 6–8 weeks.

The IRS found a mistake on your return and fixed it. As a result you're due a refund, or your refund amount changed.

What to do: If you agree — do nothing: the check arrives in 4–6 weeks. If you disagree (e.g. the refund got smaller) — call the number on the notice BY the date shown, or you lose the right to reverse the change.

You never cashed your refund check and it expired. The money is still yours — but the old check is no longer valid.

What to do: Call the number on the notice — a new check goes out within 30 days of your call. Destroy the old one. If you don't call, no new check is sent.

The IRS pulled your return for extra verification (income, withholding, credits) and is holding the refund. This does NOT mean you made an error — some returns are checked at random.

What to do: If you filed the return — just wait up to 60 days; calling earlier won't help. If you did NOT file — someone may have used your identity: file Form 14039.

The IRS fixed a mistake on your return, which changed the amount you asked to apply toward next year's estimated taxes.

What to do: If you agree — no response needed; just correct your own copy. If you disagree — call the number on the notice by the date shown, or you lose appeal rights.

The IRS fixed a mistake on your return. After the fix you owe nothing and get no refund — the balance is zero.

What to do: If you agree — do nothing. If you disagree — call the number on the notice by its date, or you lose the formal right to dispute.

A CP 13 variant: the IRS recalculated your Earned Income Credit, and the result is a zero balance (no debt, no refund). The IRS has no dedicated page for this letter.

What to do: Check the notice for what exactly was recalculated. Agree — do nothing. Disagree — call the number on the notice by its date.

The IRS corrected your return and applied all or part of your refund to another tax debt of yours (or your spouse's).

What to do: If you agree — no response needed; any remaining refund arrives in 4–6 weeks. If the debt is your spouse's, you can claim your share with Form 8379.

The IRS took all or part of your refund to pay down a past tax debt. It's not a new bill — it's an offset.

What to do: If a balance remains — pay it or set up a payment plan. Already on a plan? Keep paying as before. Disagree — call the number on the notice with your records.

After an audit the IRS denied credits (EITC, Child Tax Credit, AOTC etc.). To claim them on future returns you'll have to show you qualify.

What to do: Nothing to do right now. On the next return where you want these credits, attach Form 8862. Disagree with the audit — request audit reconsideration with documents.

An audit found your credit claim (EITC etc.) recklessly disregarded the rules — and banned the credits for 2 years. Not a fraud charge, but a serious sanction.

What to do: No action needed now. After 2 years (the year is on the notice) claim again with Form 8862. Disagree — request reconsideration with proof you qualified.