If you’ve received a letter from the IRS, don’t panic—but don’t ignore it either. Most IRS notices are automated and sent when something doesn’t match on your return or when a balance is due. Understanding what each notice means is the first step to resolving it quickly and correctly.
Below is a guide to the most common IRS notices we see at Polaris Tax & Accounting. For each one, we’ll explain:
- What it means
- What action the IRS wants you to take
- Where you can learn more
- Where to get help if you’re unsure how to proceed
CP2000 – Proposed Changes to Your Tax Return
What it is: The IRS found a mismatch between your reported income and what third parties (banks, payroll companies, investment firms) reported.
What to do:
- Compare the IRS report with your records
- Respond by the deadline (usually 30 days)
- Agree or dispute the changes with documentation
🔗 IRS CP2000 Notice Overview
📄 Our take on CP2000 and how to respond
CP504 – Final Notice Before Levy
What it is: The IRS is warning that they may begin levying your state refund or other assets if the balance isn’t paid.
What to do:
- Act quickly to avoid collection action
- Pay or set up a resolution plan immediately
- Consider a payment plan or Currently Not Collectible status
🔗 IRS CP504 Notice
📄 How Polaris helps with final notices like CP504
CP14 – First Notice of Balance Due
What it is: The IRS believes you owe taxes. This is the first formal notice sent.
What to do:
- Confirm if the amount is accurate
- Pay the balance or contact a tax pro for guidance
🔗 IRS CP14 Explanation
📄 Understanding IRS balances and how to respond
Letter 5071C – Identity Verification
What it is: The IRS needs to confirm your identity to process your tax return, often due to suspected identity theft.
What to do:
- Go to the IRS identity verification page or call the number listed
- Do not ignore—this can delay refunds
🔗 IRS Identity Verification Instructions
LT11 / Letter 1058 – Intent to Levy Assets
What it is: The IRS plans to seize assets due to unpaid taxes unless you request a Collection Due Process hearing.
What to do:
- Respond within 30 days to preserve your right to a hearing
- Work with a tax pro to evaluate resolution options
CP05A – Refund Under Review
What it is: The IRS is reviewing your return before issuing a refund. They may request additional documentation.
What to do:
- Provide documentation requested (W-2s, 1099s, identity docs)
- Follow up if no response is received within the time frame
Final Thoughts: Don’t Wait on IRS Notices
IRS notices are time-sensitive. Waiting too long to respond can result in penalties, interest, asset seizure, or loss of appeal rights.
Whether you’re confused about the notice or want to dispute it with confidence, we can help.
📅 Schedule a confidential IRS notice review with Polaris
We serve clients across Plantation, Tamarac, and all of South Florida with experienced, no-nonsense tax representation.