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That IRS letter?
It's probably not an audit.

The IRS sends over 200 million notices per year. Here's what yours actually means.

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Background

What is the IRS?

The Internal Revenue Service (IRS) is the US federal tax authority. They send notices about tax returns, refunds, payments due, and identity verification. While the letters are in English, they use tax jargon, reference specific form numbers, and cite Internal Revenue Code sections that confuse everyone — especially immigrants navigating the US tax system for the first time.

Common Letter Types

What's in your envelope?

CP2000 — Income Discrepancy

The IRS found a mismatch between what you reported and what employers/banks reported. You have 30 days to respond. This is NOT an audit.

CP14 — Balance Due

You owe taxes. Shows the amount, interest, and payment deadline. Pay or set up a payment plan to avoid penalties.

CP49 — Refund Applied to Debt

Your refund was used to pay a past tax debt. Check if the amount and the debt are correct.

Letter 5071C — Identity Verification

The IRS needs to verify your identity before processing your return. Complete online or by phone within 30 days.

The IRS envelope effect

There is no envelope in America more anxiety-inducing than one from the IRS. For immigrants — especially those on work visas, with foreign income, or filing for the first time — every IRS letter feels like it could end badly. The reality: most IRS notices are routine adjustments, not audits. But you need to understand them to respond correctly and on time.

FAQ

Common questions

What does an IRS letter mean?+
IRS letters can be about tax refunds, balance due, identity verification, audit notifications, or missing information. The notice number (e.g. CP14, CP2000) tells you the type.
Should I be worried about an IRS letter?+
Not necessarily. Many IRS notices are informational or request simple clarifications. However, balance-due notices and audit letters require timely responses — usually within 30-60 days.
How do I respond to an IRS letter?+
Read the notice carefully, note any deadlines, and respond by the date specified. Never ignore an IRS letter — unanswered notices can escalate to penalties or collections.
Related

Other official letters explained

USCIS HMRC (UK) Finanzamt (Germany) Impôts (France)
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