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IRS Notices: What Are They & What Do They Mean?

Written by Jamie Williams | Feb 9, 2022 8:30:00 PM

What Are IRS Notices or Letters?

An IRS notice or letter will explain the reason why they contacted you and will give you instructions on how to handle the issue. The notice or letter will have a number associated with it in the upper right hand side of the first page (see GIF below).

When you receive the letter, we suggest you always check the information in the letter against your records. If there are any discrepancies, reach out to us or to the IRS right way. If you agree with the information, respond according to the instructions inside.

Where Can I Find The IRS Notice Number?


Why Did The IRS Send Me A Notice or Letter?

According to the IRS, there may be several reasons they sent you a notice or letter:

  1. You have a balance due.
  2. You are due a larger or smaller refund.
  3. They have a question about your tax return.
  4. They need to verify your identity.
  5. They need additional information.
  6. They changed your return.
  7. They need to notify you of delays in processing your return.

What Do They Mean?

View the list of notices and letters below or view the list of notices on our IRSNotices.JPEG page for helpful information about each notice.

What does the CP in the front of the notice number mean? It means computer paragraph. It indicates that these are computer generated notices to request information or give information regarding certain aspects of your tax return. 

What Is The Latest Information About Notices and What Does It Mean To Me?

Posted Wednesday, February 9th, 2022, the IRS will be suspending the notices in the chart below that are indicated by the American Flag icon next to the notice number. The reason for this is to focus their efforts on processing last year's returns that are still in queue. Normally, these notices are sent when a taxpayer owes additional tax and the IRS has no record of the taxpayer filing a tax return.

This suspension of notices means for many taxpayers they don't have to worry about what worrisome piece of mail from the IRS could be lurking in their mailbox.

Keep in mind this suspension is temporary. According to the news release, "These automatic notices have been temporarily stopped until the backlog is worked through. The IRS will continue to assess the inventory of prior year returns to determine the appropriate time to resume the notices". Also, IRS does not have the authority to stop all notices as many are legally required to be issued within a certain timeframe.

I Don't Want To Worry About Notices Anymore. What Can I Do?

We have perfect solution. Learn more.


IRS Notice or Letter Number Title of Notice or Letter Description of Notice or Letter How To Respond
CP80 Unfiled Tax Return This notice is generally sent when the IRS credited payments and/or other credits to your account for the tax period shown on the notice, but the IRS hasn’t received a tax return for that tax period.

View Notice

If you agree with the notice, file the return so that you can receive the credit in the form of a refund or a decrease in the amount of taxes you owe.

If you need help filing your return or responding to the notice, let us know!

CP59 Unfiled Tax Return(s) - 1st Notice This notice is sent when there is no record of a prior year return being filed.

View Notice

If you agree with the notice, file the return so that you can receive the credit in the form of a refund or a decrease in the amount of taxes you owe.

If you need help filing your return or responding to the notice, let us know!

CP516 Unfiled Tax Returns – 2nd Notice This notice is sent when there is no record of a prior year return being filed. It is the 2nd reminder.

View Notice

If you agree with the notice, file the return so that you can receive the credit in the form of a refund or a decrease in the amount of taxes you owe.

If you need help filing your return or responding to the notice, let us know!

CP518 Final Notice – Return Delinquency This notice is sent when there is no record of a prior year return being filed. It is the final reminder.

View Notice

If you agree with the notice, file the return along with form 15103 included with the notice.

If you need help filing your return or responding to the notice, let us know!

CP501 Balance Due – 1st Notice This notice is sent after your return has been processed and there is a balance due.

View Notice

If you agree with the notice, send payment to the address indicated in the letter.

If you need help, disagree, or cannot pay the full amount, let us know!

CP503 Balance Due – 2nd Notice This notice is sent after your return has been processed and there is a balance due. It is the 2nd reminder.

View Notice

If you agree with the notice, send payment to the address indicated in the letter.

If you need help, disagree, or cannot pay the full amount, let us know!

CP504 Final Balance Due Notice - 3rd Notice, Intent to Levy This notice is sent after your return has been processed and there is a balance due. It is the final reminder before the IRS initiates levy action.

View Notice

If you agree with the notice, send payment to the address indicated in the letter.

If you need help, disagree, or cannot pay the full amount, let us know!

2802C Withholding Compliance Letter This letter is sent to taxpayers who have been identified as having under-withholding of Federal tax from their wages. This letter provides instructions to the taxpayer on how to properly correct their tax withholding.

View Notice

If you agree with the notice, send a corrected W-4 following the guidelines of the adequate withholding, use the IRS withholding tax calculator located in our tax calculator & tools page. 

If you need help, disagree, or cannot pay the full amount, let us know!

We Hope This information Was Helpful.

If you found this information helpful, share it with others and let us know your thoughts about it by sharing your comments below. We appreciate it.

 

Reference:
IR-2022-31 February 9, 2022 IRS continues work to help taxpayers; suspends mailing of additional letters
IRS Publication 6209 Section 9 Notices & Notice Codes
IRS Publication 6209 Section 14 Integrated Data Retrieval System (IDRS)