The IRS Audit Notice

An IRS audit notice should be dealt with quickly to avoid extra penalties.

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Types of IRS audit notices

There are assessment notices or a non-assessment notices.


IRS non-assessment notices deal with:

  • Forgotten Signatures
  • Missing W-2s
  • Omitted forms

To correct this, attach the forgotten information and return the form to the IRS.


IRS assessment notices concern:


  • Uncredible tax payments
  • Calculation errors
  • Missing payments

Assessment notice forms are:

CP-2501 - Income Verification Notice
CP-2000 - Notice of Proposed Adjustment for Under payment

Understanding the IRS audit notice

Each notice lists the penalties and interest you owe.

If you are confused, call 1.800.829.1040.

After the IRS audit notice

The first notice shows the new balance you owe.

The second notice is Form CP-501, a Reminder Notice of your balance due.

The third notice, CP-504, an Urgent Notice-Balance Due, is sent 30 days after the 2nd.

A fourth notice , the Final Notice declares the IRS's intent to levy.

If you do not respond to the final notice, the IRS has the right to garnish your wages.


Next: what to do in case of an audit.

Related IRS audit notice publications

Get more information about responding to an audit directly from the IRS, in the form of Publication 556.

For more information on your rights as a taxpayer, consult Publication 1.

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here. (But you probably already have it.)