Most IRS notices are routine correspondence, not audit notices. The most common types include CP2000 (income discrepancy between your return and third-party reporting), CP14 (balance owed), CP504 (intent to levy, which requires immediate attention), and CP90/LT11 (final notice before levy, extremely urgent). Greg Monaco, CPA reviews IRS notices for NJ clients and prepares responses that address the specific issue while protecting your rights as a taxpayer.

Getting a letter from the IRS triggers anxiety, but most notices are routine.

What Are the Most Common IRS Notices NJ Taxpayers Receive?

CP2000 (income discrepancy), CP14 (balance owed), CP504 (intent to levy, urgent), CP90/LT11 (final notice before levy, very urgent).

Step 1: Read Carefully

Note the deadline and specific items in question.

Step 2: Contact Your CPA First

Before calling the IRS. Your CPA can review and draft an appropriate response.

Step 3: Respond by the Deadline

Missing it limits your options. Request an extension if needed.

When Is an IRS Notice Truly Serious?

CP504, CP90, or LT11 notices mean the IRS is preparing to seize assets. Contact your CPA immediately. Resolution options are time-sensitive.

Key Takeaway

Not every IRS letter is a cause for alarm, but every one requires a timely response. The most important steps are to read the notice carefully, note the response deadline, and contact your CPA before taking any action. A well-prepared response resolves most notices quickly. Ignoring a notice or missing the deadline limits your options and can escalate a routine matter into a collections case.

Related reading: What to Do If Your NJ Business Gets Audited | IRS Audit Red Flags | Tax preparation services

## Frequently Asked Questions

What is a CP2000 notice?

A CP2000 is an IRS notice indicating that income reported on your return does not match information the IRS received from third parties (W-2s, 1099s, K-1s). It is not an audit notice. The IRS proposes additional tax based on the discrepancy and gives you 30 days to respond. Common causes include unreported 1099 income, incorrect amounts, or income reported under a different name or SSN.

How long do I have to respond to an IRS notice?

Most IRS notices give you 30 days to respond, though some (like CP504 intent to levy) may allow less time. CP90/LT11 final notices before levy are extremely urgent and require immediate action. Never ignore an IRS notice. Responding by the deadline preserves your appeal rights and prevents the IRS from assessing additional tax by default.

Should I call the IRS or respond in writing?

Respond in writing whenever possible. Written responses create a documented record, allow you to include supporting documentation, and are processed more reliably than phone conversations. If you call, keep detailed notes of the date, time, agent name, and badge number. For complex notices, have your CPA prepare and submit the response on your behalf.

What is a CP504 notice and is it serious?

A CP504 is a notice of intent to levy, meaning the IRS intends to seize your assets (bank accounts, wages, or other property) to satisfy an unpaid tax balance. It is very serious and requires immediate attention. You typically have 30 days to pay the balance, set up a payment plan, or dispute the amount. Do not ignore a CP504; the consequences of inaction include bank levies and wage garnishments.