Understand the letter before you react

Balance due on your account

The IRS processed your return and shows a balance owed, usually tax plus interest and possibly a late-payment penalty.

Deadline: Typically 21 days from the notice date before additional interest and penalties accrue.

Do not ignore it — CP14 is the first step in a collection sequence that escalates automatically.

Proposed changes to your return

Income reported to the IRS by third parties (W-2s, 1099s, brokerages) does not match your return, so the IRS is proposing changes.

Deadline: Usually 30 days from the notice date to agree or dispute.

Do not simply sign and return the agreement form without checking whether offsetting costs or basis reduce the amount.

This is one to handle with a professional rather than alone.

Income mismatch inquiry

An earlier-stage version of the CP2000: the IRS sees a discrepancy and is asking you to explain before proposing tax.

Deadline: Generally 30 days to respond.

Do not skip responding because no balance is shown — silence leads to a CP2000.

This is one to handle with a professional rather than alone.

Reminder of unpaid balance

A follow-up reminder that a balance remains unpaid after an earlier notice.

Deadline: Usually 10 to 21 days before the next escalation notice issues.

Do not assume a pending amended return pauses collection — it usually does not.

Final notice — intent to levy

The IRS intends to levy state tax refunds and may begin searching for other assets to levy for the unpaid balance.

Deadline: Act within 30 days of the notice date.

Do not wait for the next letter. Enforcement steps begin at this stage.

This is one to handle with a professional rather than alone.

Final notice of intent to levy and right to a hearing

The IRS can levy wages, bank accounts, and other property after the response window closes, and this notice carries your Collection Due Process appeal rights.

Deadline: 30 days to request a Collection Due Process hearing.

Do not let the 30 days lapse; the hearing right is the strongest protection in the process.

This is one to handle with a professional rather than alone.

Statutory notice of deficiency

The IRS has finalized proposed changes and this is the legal notice that lets you petition the Tax Court.

Deadline: 90 days to file a Tax Court petition (150 days if addressed outside the U.S.).

Do not miss the 90-day window; after it closes the assessment becomes final.

This is one to handle with a professional rather than alone.

Math or credit adjustment

The IRS corrected an error and changed your refund or balance — CP12 usually means a changed refund, CP11 a balance due.

Deadline: Generally 60 days to dispute the adjustment.

Do not assume the correction is right — credit adjustments are commonly reversed on documentation.

Identity verification required

The IRS is holding your return until you verify your identity, often because of suspected identity theft.

Deadline: Respond promptly; your refund and processing stay frozen until you do.

Do not use phone numbers or links from an email or text — verify only through the letter or IRS.gov.

Information return problems (business)

Payee name and TIN combinations on your filed 1099s do not match IRS records, or penalties are proposed for late or incorrect information returns.

Deadline: Deadlines vary by notice; backup withholding obligations can begin quickly.

Do not ignore backup withholding requirements once triggered; the liability shifts to you.

This is one to handle with a professional rather than alone.