Tax Relief AnswersIRS Notices and Letters Explained
The short answer
IRS collection notices arrive in a sequence: a bill (CP14), reminders (CP501, CP503), a Notice of Intent to Levy that reaches only your state refund (CP504), and then a final notice that gives you 30 days to request a Collection Due Process hearing before wages, bank accounts or federal payments can be levied (LT11, Letter 1058, CP90 or CP297). Sources: IRS, Understanding your notice or letter, IRS, Collection Due Process FAQs, 26 U.S.C. 6330.
Every collection notice, in order
| Notice | What it means | What the IRS can do after it | Your deadline, as the IRS states it | CDP hearing right? | Our page |
|---|---|---|---|---|---|
| CP14 | First bill: "you owe money on unpaid taxes" | Add interest and the failure-to-pay penalty; send reminders | The due date printed on the notice | No | CP14 |
| CP501 | First reminder of an unpaid balance | File a notice of federal tax lien | The due date shown on the notice | No (CAP appeal available) | CP501 and CP503 |
| CP503 | Second reminder | File a Notice of Federal Tax Lien if not already filed | The due date shown on the notice | No (CAP) | CP501 and CP503 |
| CP504 | Notice of Intent to Levy, 26 U.S.C. 6331(d) | Levy your state tax refund; file a lien; search for other assets | "Immediately"; use the date printed on the notice | No (CAP); the IRS FAQ says it cannot levy wages or accounts with just this notice | CP504 |
| LT11 / Letter 1058 | Final Notice of Intent to Levy and Notice of Your Right to a Hearing | Levy wages, bank accounts, Social Security and other property; file a lien | 30 days from receipt to request a CDP hearing (Form 12153) | Yes | LT11 and Letter 1058 |
| CP90 / CP297 | Intent to levy "certain assets" with CDP rights | Levy, including a continuing levy of up to 15% of certain federal payments (26 U.S.C. 6331(h)) | 30 days to request a CDP hearing (26 U.S.C. 6330) | Yes | CP90 and CP297 |
| CP2000 | Proposed change to your return from third-party income data; "isn't a bill" | Send another notice and a bill if you do not reply | The date listed on the notice | Not a collection notice | CP2000 |
| CP523 | Intent to terminate your installment agreement and levy | Terminate the plan; file a lien; levy wages or bank accounts | No later than 30 days from the date of the notice | Appeal right with the Independent Office of Appeals; CDP comes from the final levy notice | CP523 |
| CP49 | "We used all or part of your refund to pay a tax debt" | Send any remaining refund by check; bill the rest | None stated; call the number on the notice if you disagree | Not applicable | IRS, CP49 |
| LT16 | The IRS is trying to collect unpaid tax or is missing returns from you | Enforcement that "can include seizing your assets or wages"; file a lien | The payment due date specified in the notice | The page says you are entitled to a hearing with the Office of Appeals; it does not call itself a CDP notice | LT16 (IRS, LT16) |
Every notice we cover, by number
CP notices, then LT, then letters, in number order. IRC means 26 U.S.C.; "none" means our sources cite no section.
| Code | Plain name | Stage | Legal basis | Page |
|---|---|---|---|---|
| CP11, CP12 | Math error fix | Return processing | IRC 6213(b) | CP11 and CP12 |
| CP14 | First bill | Collection | None | CP14 |
| CP49 | Refund applied to debt | Collection | None | IRS, CP49 |
| CP71, CP71C, CP71D | Balance reminder | Collection | None (passport: IRC 7345) | CP71 |
| CP90, CP297 | Final notice, federal payments | Levy, CDP | IRC 6330, 6331(h) | CP90 |
| CP501, CP503 | Reminders | Collection | None | CP501 |
| CP504 | Intent to levy | State refund levy | IRC 6331(d) | CP504 |
| CP508C | Passport certification | Passport | IRC 7345 | CP508C |
| CP521 | Plan payment reminder | Payment plan | None | CP521 |
| CP523 | Intent to end plan | Payment plan | None | CP523 |
| CP2000 | Proposed income change | Income matching | None | CP2000 |
| CP3219A | Notice of deficiency | Tax Court | IRC 6212, 6213 | CP3219A |
| LT11 | Final intent to levy | Levy, CDP | IRC 6330 | LT11 |
| LT16 | Unpaid tax or missing returns | Collection | None | LT16 |
| Letter 950 | 30-day audit letter | Audit, Appeals | None | Letter 950 |
| Letter 1058 | Final intent to levy | Levy, CDP | IRC 6330 | Letter 1058 |
| Letter 1153 | Proposed trust fund penalty | Penalty, Appeals | IRC 6672 | Letter 1153 |
| Letter 3172 | Lien filed | Lien, CDP | IRC 6320 | Letter 3172 |
| Letters 4883C, 5071C | Verify your identity | Return processing | None | 4883C and 5071C |
Why CP504 is not the final notice
The law lets the IRS levy a state tax refund without a prior hearing (26 U.S.C. 6330(f)). Everything else needs the hearing notice first, at least 30 days before the levy (26 U.S.C. 6330(a)). The IRS FAQ says of CP504: "The IRS cannot levy with just this notice."
What to do
- Find the notice number in the right corner of the letter (where the IRS says it appears) and match it to the table.
- Use the date printed on your notice, not a number of days you read online.
- If you are at CP14 through CP504, apply for the IRS payment plan online or call the number on the notice. Once the IRS approves a plan, it generally stops sending further collection notices for that balance.
- If you are at LT11, Letter 1058, CP90 or CP297, decide within 30 days whether to request a hearing on Form 12153.
- If you got a notice not on this list, look it up on the IRS notice page; if it is not there or looks suspicious, the IRS says to call 800-829-1040.
What the sequence does not mean
- Notices can arrive out of the order shown when a balance is added, a plan defaults (CP523), or a refund is applied (CP49).
- Missing a deadline does not erase the balance; it makes a right, such as a CDP hearing, harder to use.
- A lien is not a levy. A lien is a public claim on your property; a levy takes it.
Responding costs nothing beyond IRS fees, such as a payment plan setup fee, which is reduced or waived for low-income taxpayers. A Low Income Taxpayer Clinic can represent you for free or for a small fee if you qualify.
FAQ
Which IRS notice comes right before a wage levy?
LT11 or Letter 1058 (or CP90 or CP297), followed by at least 30 days.
Is CP504 the final notice?
No. The IRS CDP FAQ says the IRS cannot levy wages or bank accounts with just this notice; it can take your state tax refund.
How many days do I have on each notice?
Most notices give a date rather than a count; the IRS states 30 days for the CDP hearing after LT11 or Letter 1058 and 30 days from the date of a CP523.
Do CP501 and CP503 let the IRS take money?
No. Both warn that a notice of federal tax lien may be filed; neither mentions a levy.