Tax Notice

What is a tax notice?

A tax notice is official correspondence from a tax authority regarding your tax account. Notices may request additional information, propose adjustments, assess penalties, confirm payments, or communicate audit findings. Each notice type has specific response deadlines and requirements. Ignoring tax notices generally makes situations worse and can result in default assessments or collection actions.

Reading and responding to notices

Read carefully to understand what the notice says and what action is required. Note the response deadline prominently. Identify whether the notice is informational, requesting payment, or requiring substantive response. If you agree with an adjustment, follow payment instructions. If you disagree, gather documentation and respond in writing before the deadline. When uncertain, consult your tax advisor promptly.

Common notice types

CP2000 proposes adjustments based on third-party reporting not matching your return. CP501-504 are collection notices with escalating urgency. Notice of Deficiency formally assesses additional tax and starts the 90 days to petition the Tax Court. Letter 525 requests documentation for audit items. Know which notices require urgent action versus simple acknowledgment.