IRS Letter Is Confusing – How to Understand What the IRS Wants

IRS letters are often written in technical language that can be difficult to understand. Here's how to decode your notice and determine what action you need to take.

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Key Information in Every IRS Letter

Every IRS notice contains these essential elements:

What to Look For

Notice Number – Upper right corner (e.g., CP14, CP2000, LT11)
Tax Year – Which year the notice concerns
Amount – Dollar figure (if applicable)
Deadline – Date by which you must respond
Action Required – Usually in bold near the top or in a box

Common Confusing IRS Phrases and What They Mean

"Proposed Changes to Your Tax Return"

The IRS is suggesting you owe more money (or will receive a smaller refund) based on information they have. This is not final – you can dispute it.

"Notice of Deficiency"

The IRS believes you owe additional tax. You have 90 days to file a petition with the U.S. Tax Court if you disagree. This is a serious notice.

"Intent to Levy"

The IRS is notifying you they will seize your property, wages, or bank account if you do not respond. This is a final warning.

"Balance Due"

You owe money from a previous tax return. Interest and penalties are accruing.

"Underreported Income"

The IRS has records showing you received income that was not reported on your tax return.

Red Flags (High Priority Response Required)

"Final Notice" – Last warning before enforcement action
"Intent to Levy" – Wage garnishment or bank levy imminent
"Notice of Deficiency" – 90-day deadline to petition Tax Court
"Audit" or "Examination" – Documentation request or in-person meeting

What to Do If You Still Don't Understand

Next Steps

Call the phone number on the notice during business hours (8am-5pm local IRS office time)
Request a plain-language explanation of what the notice means
Ask specifically: "What action am I required to take?" and "What is my deadline?"
Take notes during the call, including the IRS representative's name and ID number
Upload your letter to get automated explanation and response guidance

Most Common IRS Letter Types

Disclaimer: This tool provides informational assistance only and does not constitute legal or tax advice. For complex tax matters, consult a licensed tax professional or attorney.