IRS letter help
How to Read an IRS Letter
Every IRS letter answers the same few questions: which notice it is, which year, what the IRS thinks happened, what it wants, and by when. Here is where to find each one.
Reviewed by LaToya Clark-Thompson, FounderLast updated
Start with the corner of the first page
The notice number is printed in the right corner of the letter. It usually begins with CP (for the computer-generated notices, such as CP14 or CP2000), LT, or Letter followed by a number (such as Letter 5071C). That number tells you what kind of letter it is, and it is the fastest way to look it up.
Near it you will usually find the notice date, the tax year or tax period, and the last digits of your Social Security number or the business EIN. Check that the year and the number are yours. A letter about a business account (such as a CP2100 about 1099 payees) and one about your personal account need different responses.
The parts of a typical notice
- The summary box: what the letter is about in one or two lines, and often the amount due or the change proposed
- The explanation: what the IRS found, changed or did not receive, and why
- The amount section, where there is one: tax, penalties and interest listed separately
- What you need to do: the instructions, which often differ for “if you agree” and “if you disagree”
- The response date or due date: the single most important line on the letter
- Contact information: the phone number and address for this notice
- The reply stub or response form at the end, to tear off and return with any reply or payment
What the response date means
The date on the letter controls your rights. For a bill, paying by then limits interest and penalties. For a proposed change, replying by then keeps your right to dispute it. For some letters, such as the CP3219A notice of deficiency or a Letter 3172 lien notice, the date is a legal deadline that cannot be extended. Count from the date printed on the letter, not the day you opened it.
Reading the amounts
Balances, such as those on a CP161, are usually broken into the tax itself, penalties (often for filing late, paying late, or underpaying estimated tax), and interest. Each part works differently. Tax is what the law says you owe. Penalties can sometimes be reduced; see IRS penalty relief. Interest runs on unpaid tax and on penalties until the balance is paid.
If the letter proposes a change rather than billing you, it will usually show your return as filed beside the IRS version, line by line. That comparison is where to look for the cause: a missing 1099, a sale reported without its cost, a credit that was reduced.
When to get help
If the letter proposes a change you do not understand, mentions a levy, a lien or the Tax Court, relates to a business or payroll account, or concerns a year you did not file (a CP59, for example), or holds part of a refund for audit (a CP75), it is worth having someone read it with you. Send us every page, front and back, through the secure client portal, along with the return it refers to. We will tell you what it means and what the options are. Our tax resolution page explains how the work is divided between our office and the independent licensed CPA we work with.
Frequently asked questions
What does CP mean on an IRS notice?
CP stands for computer paragraph, the IRS term for notices generated by its systems from standard text. A CP number identifies the notice type: CP14 is a first balance due notice, CP2000 proposes changes based on third-party forms, and so on. Letters with an LT or Letter prefix are also standard, and many involve an IRS employee.
Why does my IRS letter show only part of my Social Security number?
For security. IRS notices typically print only the last few digits of your Social Security number or EIN. Use those digits, together with your name and the tax year, to confirm the letter is about your account. If the digits do not match, contact the IRS using a number from IRS.gov.
Can I see my IRS letters online?
Some, yes. The IRS makes certain notices and letters available in your IRS Online Account, which also shows your balance, payments and transcripts. It is a good way to confirm that a paper letter is genuine and to see what else is on your account. Not every notice appears there yet.
Do I need to reply to every IRS letter?
No. The IRS says you do not need to reply unless the letter specifically asks you to. Some letters simply confirm a change or a payment. If you agree with a notice, you usually just take the action it requests. Read the instructions section to see whether a response is expected, and keep the letter with your records either way.
Not the question you had? The full tax FAQ covers more ground, and our client reviews say what the work is actually like.
Related pages
Is this IRS letter real?
How the IRS really contacts you, what it never does, and how to check a letter safely.
Learn moreHow to respond to an IRS letter
Check it, decide whether you agree, gather support, reply by the date, and keep proof.
Learn moreCP14 notice
The first bill for a balance due. How to check the figure and pay or set up a plan by the date on the notice.
Learn moreCP2000 notice
Third-party records do not match your return. A proposal you can agree with, or dispute with documents.
Learn morePart of IRS & SC Letter Help. Not sure which service fits? Answer a few questions.
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