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FAQ5 min readMar 17, 2026
IRS Notices: How to Respond
Receiving a letter from the IRS can be scary, but most notices are routine. Learn how to identify and respond to the most common IRS notices.
How to Respond to IRS Notices
Don't Panic
The IRS sends millions of notices annually. Most are not indications of wrongdoing.
Common IRS Notices
CP2000 - Underreported Income
- IRS detected income you didn't report
- Review the notice carefully; sometimes the IRS is wrong
- Respond within the given timeframe (usually 60 days)
CP501/CP503/CP504 - Balance Due
- You owe taxes from a prior return
- CP504 is serious — IRS intends to levy
CP11/CP12 - Math Error
- IRS changed your return
- Review the changes and respond if you disagree
LT11/Letter 1058 - Final Notice of Intent to Levy
- Most urgent notice
- You have 30 days to appeal or set up a payment arrangement
Notice 5071C - Identity Verification
- IRS needs to verify your identity before processing your return
- Use IRS.gov/IdentityVerification or call the number on the notice
Steps to Take
- Read the notice completely
- Check your tax return for the year in question
- Gather relevant documents
- Respond by the deadline
- Consider professional help for complex issues
Got an IRS letter? Don't respond without professional guidance. K2 Tax Solutions can handle IRS communications on your behalf.