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IRS Letters & Notices — Understanding and Responding to IRS Notices Before Collections Begin
IRS letters and notices can be confusing, stressful, and easy to ignore — but they are the IRS’s primary way of warning taxpayers before taking action. Each notice has a specific meaning, deadline, and consequence if you fail to respond.
Internal Tax Resolution helps taxpayers understand what their IRS letters mean, what the IRS is requesting, and how to respond properly to avoid garnishments, levies, or legal action.
Some Reasons You Received an IRS Letter or Notice
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You have a balance due
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You are due a larger or smaller tax refund
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The IRS has a question on your tax return
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The IRS needs to verify your identity
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The IRS requires additional information
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There was a change on your tax return
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Notification on any tax return delays
What Are IRS Letters and Notices?
IRS notices are official communications sent to taxpayers regarding taxes owed, missing returns, discrepancies, or impending collection actions. Each notice contains important information about:
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What the IRS believes you owe
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Whether the IRS needs additional documentation
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If a tax return is missing
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Whether enforcement (garnishment, levy) is about to begin
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Response deadlines you must meet
Ignoring these letters often leads to wage garnishment or bank levies.
Why the IRS Sends Notices
IRS letters are issued when:
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You owe back taxes
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Your tax return has missing or incorrect information
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Your reported income doesn’t match W-2 or 1099 records
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You missed a payment
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You didn’t file a return
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The IRS intends to levy or garnish your wages
Some notices are simple requests. Others are serious warnings that require immediate action.
Common IRS Notices You May Receive
Below are some of the most common IRS letters and what they mean:
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CP14 — Balance Due Notice
The IRS believes you owe tax for the year. Interest and penalties begin accumulating.
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CP501 — First Reminder Notice
A follow-up reminder of your tax balance. This is a warning that further action is coming.
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CP503 — Important: Immediate Response Needed
A more urgent reminder that your tax balance remains unpaid.
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CP504 — Final Notice Before Levy
This is extremely serious.
The IRS is alerting you that they intend to begin levying your wages or bank account.
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LT11 / Letter 1058 — Final Notice of Intent to Levy
This letter gives the IRS the legal authority to seize assets if you do not respond.
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CP2000 — Underreported Income Notice
The IRS believes your income does not match employer or financial institution reports.
Often results in additional tax if ignored.
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CP23 / CP24 — Payment Discrepancy
The IRS believes your payment does not match what you reported.
These letters are time-sensitive, and ignoring them often leads directly to IRS enforcement.
Consequences of Ignoring IRS Letters
If you don’t respond to IRS notices, the IRS may:
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Garnish your wages
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Levy your bank accounts
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File a federal tax lien
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Increase penalties and interest
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Assign your case to collections
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Begin seizure of assets in extreme cases
IRS letters are more than reminders — they are legal steps in the collection process.
How Internal Tax Resolution Helps With IRS Notices
Every IRS notice requires a specific response. Our tax professionals handle the entire process for you.
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We help by:
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Reviewing your IRS letters and explaining what they mean
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Pulling IRS transcripts to understand your full tax situation
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Determining whether the IRS is correct
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Filing missing returns if needed
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Preparing responses and documentation
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Contacting the IRS directly on your behalf
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Stopping levies, garnishments, and escalations
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Creating a plan to resolve the underlying tax issue
You never have to call the IRS yourself — we handle all communication.
Our IRS Notice Resolution Process
1. Review Your IRS Letter and Tax History
We identify the meaning, deadline, and severity of the notice.
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2. Determine the Underlying Issue
Whether it’s unfiled returns, a balance due, or a reporting discrepancy.
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3. File or Correct Returns as Needed
We resolve missing filings or errors that triggered the notice.
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4. Respond to the IRS on Your Behalf
We provide supporting documents, explanations, or appeals when appropriate.
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5. Stop Collection Actions
If a levy or garnishment is imminent, we act quickly to prevent it.
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6. Create a Long-Term IRS Relief Plan
We help you stay compliant and avoid future notices.
Client Success Example
“A client in Idaho received a CP504 Final Notice of Intent to Levy and was days away from a wage garnishment. Internal Tax Resolution contacted the IRS immediately, stopped the levy, filed missing returns, and set up an affordable payment plan. No garnishment ever occurred.”
Get Help Understanding Your IRS Letter Today
IRS notices can escalate quickly, but most problems can be fixed when handled correctly and on time. Let us interpret your notice, stop IRS actions, and resolve the underlying issue.
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Call Internal Tax Resolution for a free IRS notice review.
We’ll explain what the letter means and what to do next.