The balance-due sequence
| Notice | What it means |
|---|---|
| CP14 | First notice that you have a balance due |
| CP501 | Reminder that the balance is still unpaid |
| CP503 | Second reminder; the IRS is escalating |
| CP504 | Notice of intent to levy, including state tax refunds |
| LT11 / Letter 1058 | Final notice of intent to levy, with your right to a Collection Due Process hearing within 30 days |
The earlier you respond, the more options you have: payment plans, penalty relief, an Offer in Compromise, or correcting a balance that's wrong.
CP2000: the underreporting notice
A CP2000 isn't a bill. It's a proposal to change your return because income reported to the IRS on W-2s, 1099s or 1099-DAs doesn't match what you filed. It includes a response date, usually about 30 days out. Many CP2000s overstate what's owed, especially when a form shows sale proceeds without cost basis. You can agree, partially agree or disagree, with documentation.
Other common letters
- Identity verification letters (such as Letter 5071C) hold your refund until you verify your identity.
- Crypto letters (6173, 6174, 6174-A). See IRS crypto letters.
- Audit letters. See IRS audit help.
Watch out for scams
The IRS generally starts contact by mail, not by phone, text or email. If you're unsure whether a notice is real, check your IRS online account or have us review it.
Frequently asked questions
Is a CP2000 a tax bill?
No. It's a proposed change to your return based on information the IRS received. You can agree, partially agree or disagree before the response date.
What does a CP504 mean?
The IRS intends to levy to collect the unpaid balance, starting with state tax refunds. It's a sign to act quickly.
How long do I have to respond to an LT11 or Letter 1058?
Generally 30 days from the date of the notice to request a Collection Due Process hearing, which can pause the levy.
Can you respond to the IRS for me?
Yes. With a power of attorney (Form 2848), we can respond, call the IRS and negotiate on your behalf.