What does this IRS letter mean? (Plain-English Answers + What to Look For)

What does this IRS letter mean? In most cases, it means the IRS is trying to tell you one of three things: (1) they believe you owe money, (2) they believe something on your return doesn’t match their records, or (3) they need information from you to finish processing your account.

On this page, you’ll learn how to identify the letter code, what the most common IRS letters usually mean, how serious they are, and what typically happens next. The goal is simple: help you understand the letter without panic or confusion.

Start Here: Find the Letter Code (It’s the Fastest Way)

Most IRS letters include a code near the top right or in the header area. It often looks like CP14, CP2000, CP504, or LT11.

That code is important because it usually tells you the type of issue. Once you know the code, you can jump straight to the matching explanation page.

• Balance due / billing letters often start with CP (example: CP14, CP504).
• Mismatch / review letters often include CP2000 (proposed changes).
• Final intent letters may use LT codes (example: LT11).

Takeaway: Find the code first. It saves you time and reduces confusion.

What IRS Letters Usually Mean (In Plain English)

Most IRS letters fall into a few main categories. Here are the most common ones people run into.

1) “You owe a balance” letters

These letters usually mean the IRS believes there is an unpaid amount for a specific tax year. This can happen even if you filed on time and honestly — sometimes it’s simply that the tax was not paid in full.

A common starting point is: CP14 Notice Explained (often the first balance due letter).

Takeaway: Many IRS letters are just billing notices. They are common.

2) “Something doesn’t match” letters

These letters usually mean the IRS received information (like W-2s or 1099s) that doesn’t match what was reported on a return. A common example is: CP2000 Notice Explained.

CP2000 notices are often misunderstood. They are typically a proposed change notice — not an audit and not an automatic bill.

Takeaway: A mismatch letter is often a data issue, not a wrongdoing issue.

3) “We may take action if this isn’t addressed” letters

These letters can feel scary because they use stronger language. A common example is: CP504 Notice Explained, which warns about a possible levy of a state tax refund.

Takeaway: Stronger language usually means the account is further along in the notice cycle.

4) “Final notice” letters

These letters are more serious because they often include formal rights and deadlines. A major example is: LT11 Notice Explained (Final Notice of Intent to Levy and Notice of Your Right to a Hearing).

Takeaway: Final notices are time-sensitive and should not be ignored.

How Serious Is My IRS Letter?

The seriousness usually depends on where the letter is in the sequence. Many people first receive a basic balance due notice, and later letters get firmer if nothing changes.

A simple way to think about it:

• Early-stage notices (example: CP14) often start the cycle.
• Mid-stage warnings (example: CP504) suggest escalation.
• Final notices (example: LT11) may include formal rights and deadlines.

Takeaway: Most letters start mild and get stronger over time if unresolved.

What to Look At First When You Open an IRS Letter

If you’re staring at the letter and don’t know where to begin, here are the key items people usually check first.

• The letter/notice number (CP14, CP2000, CP504, LT11)
• The tax year involved (example: 2022, 2023, etc.)
• The issue summary (balance due, proposed changes, request, warning)
• The date of the notice and any listed deadline
• Any amount listed (what they say is due or proposed)

One important safety tip: IRS letters often include personal details. If you’re saving or sharing them, keep your SSN and account numbers protected.

Takeaway: The code, year, and deadline are usually the most important items.

Common Reasons People Get IRS Letters (Even When They Did Nothing “Wrong”)

IRS letters are more common than most people realize. Many are triggered by routine events, not bad intent.

• Unpaid balance (even a partial balance)
• Withholding or estimated payments were not enough
• Income forms (W-2 / 1099) were corrected after filing
• Brokerage or sales forms were missing cost basis information
• Address changes caused earlier letters to be missed

Takeaway: A letter often means “we need to reconcile something,” not “you’re in trouble.”

Where to Go Next on This Site

If you know your letter code, start with the matching page:

• CP14 Notice Explained (balance due / early stage)
• CP2000 Notice Explained (mismatch / proposed changes)
• CP504 Notice Explained (state tax refund levy warning)
• LT11 Notice Explained (final notice of intent to levy)

If you’re not sure which one you have, go back to the homepage and start there: WhatThisIRSLetterMeans.com (Home)

Takeaway: Your letter code is your shortcut to the right explanation.

Frequently Asked Questions

Why did I get an IRS letter if I already filed my taxes?

Filing a return does not always mean the account is fully settled. IRS letters can come after filing if there is a balance due, a mismatch with forms the IRS received, or a processing issue that needs clarification.

Does an IRS letter mean I’m being audited?

Not usually. Many IRS letters are automated notices related to billing, matching, or processing. For example, a CP2000 is a mismatch notice, not an audit notice.

What if I don’t recognize the amount on the IRS letter?

That can happen for many reasons, including adjustments, timing differences, or missing information. The letter code helps identify what type of issue it is and what the IRS is claiming. This is one reason we recommend starting with the matching letter explanation page.

Is CP504 the same as LT11?

No. A CP504 commonly warns about taking a state tax refund, while LT11 is a final intent-to-levy notice that includes formal hearing rights.

When should I talk to a tax professional?

If you need advice specific to your situation, a licensed tax professional (EA/CPA/attorney) can review your notice, your account history, and your documents. This site is for education, not personalized guidance.

This page is for general educational purposes only and does not provide tax or legal advice. WhatThisIRSLetterMeans.com is not affiliated with the IRS or any government agency.