While it\u2019s not a pleasant thought, any taxpayer is open to receiving a letter from the IRS. As such, it\u2019s good to understand the different types of notices and what they mean. While not exhaustive, we offer the following list of the most common:<\/p>\n\n\n\n
CP2000: Notice of proposed adjustment<\/strong> CP2501: Tax return discrepancy<\/strong> Letter 525: Examination report<\/strong><\/strong>
This notice is generated when there is a difference between what the taxpayer reported on the tax return versus what was reported to the IRS by an employer, a bank or other payer. It\u2019s important to note that a CP2000 can result in a refund. The letter informs the taxpayer of the adjustment being made on their return and will break down what was originally reported and the proposed IRS adjustments.<\/p>\n\n\n\n
The CP2501 requests clarification regarding information on the tax return that does not match information on file with the IRS. The taxpayer should contact the IRS immediately to explain the difference and correct the return. The deadline is usually 30 days from the date on the notice.<\/p>\n\n\n\n
This letter informs the taxpayer that changes have been proposed due to an IRS examination. After a taxpayer has been selected for an audit, the IRS may propose additional tax based on the examination. The taxpayer has a 30-day period to dispute this proposed change.<\/p>\n\n\n\n