Receiving an IRS notice can be one of the most stressful moments for any taxpayer. Whether it’s a simple error or a serious audit threat, knowing how to respond—and when to hire a tax attorney—can mean the difference between quick resolution and long-term financial consequences.
At The Law Office of Pietro Canestrelli, A.P.C., we specialize in representing individuals and businesses across California and nationwide in all matters related to IRS notices. Our lead attorney, a former IRS insider, uses decades of experience to offer strategic and aggressive tax resolution services from our offices in Temecula and San Diego.
In this guide, we’ll explore the most common types of IRS notices, what they mean, and which ones require the expertise of a seasoned IRS notice lawyer.
Understanding IRS Notices: Why Prompt Action Matters
The IRS issues different types of letters—known by codes like CP2000, CP504, and Letter 1058—to communicate specific tax issues. These can involve underreported income, missed payments, audit requests, or enforcement actions like liens and levies.
If you’ve received a notice, don’t ignore it. A timely response could protect your wages, property, credit score, and peace of mind. Hiring a tax attorney for IRS notices can help ensure you’re legally protected and positioned for the best possible outcome.
CP2000 – Underreported Income Notice
The CP2000 notice is sent when the income reported on your tax return doesn’t match the income reported to the IRS by third parties like banks or employers. This is a common trigger for unexpected tax bills.
What it means: The IRS believes you owe additional taxes due to unreported income.
Should you hire a tax attorney?
Yes. A tax lawyer for unreported income can analyze the data, challenge incorrect assumptions, and negotiate a favorable outcome. Incorrect responses can lead to larger debts, penalties, or even an IRS audit.
CP504 – Final Notice Before Levy
If you’ve failed to respond to previous notices, the IRS CP504 notice is issued as a final warning. It states that the IRS intends to levy (seize) your assets if you don’t act.
What it means: This is your last chance to resolve your IRS tax debt before enforcement.
Should you hire a tax attorney?
Absolutely. A tax debt lawyer can file the appropriate appeals, negotiate a payment plan or Offer in Compromise, and stop the levy before your wages or accounts are garnished.
Letter 1058 / LT11 – Final Notice of Intent to Levy and Right to a Hearing
This is a legal document informing you of your right to a Collection Due Process (CDP) hearing.
What it means: The IRS is about to seize your assets, but you have the right to challenge it.
Should you hire a tax attorney?
Yes. At this point, only a qualified IRS notice tax attorney can properly represent you in a hearing and preserve your legal rights.
CP90 – Levy on Social Security Benefits
For retirees or disabled individuals, this notice can be especially harmful. The CP90 notice informs you that the IRS plans to levy your Social Security income.
What it means: The IRS will garnish your government benefits to collect unpaid taxes.
Should you hire a tax attorney?
Yes. A wage garnishment lawyer can protect these essential funds and negotiate with the IRS on your behalf.
CP14 – Balance Due
This is the most basic notice indicating that your return has resulted in a balance owed to the IRS.
What it means: You owe taxes and must pay, set up a payment plan, or dispute the charge.
Should you hire a tax attorney?
Maybe. If the balance is small and accurate, you may resolve it without legal assistance. But if the amount is unaffordable or you suspect an error, working with a Temecula tax attorney for IRS debt can prevent bigger problems later.
CP523 – Installment Agreement Default
The CP523 notice tells you that your IRS payment plan has defaulted due to missed payments.
What it means: The IRS may cancel your agreement and resume collections.
Should you hire a tax attorney?
Yes. A tax attorney for IRS installment agreement issues can help reinstate or renegotiate the plan and avoid enforcement actions.
CP75 – Audit of Earned Income Tax Credit (EITC)
When you receive a CP75 notice, the IRS is questioning your eligibility for credits like the EITC.
What it means: You must submit documents to prove eligibility or lose the credit.
Should you hire a tax attorney?
Yes. A tax lawyer for EITC audit can ensure that you meet the documentation requirements and defend your claim.
Letter 525 – IRS Audit Examination Report
This letter includes a formal IRS audit report and outlines changes to your return.
What it means: The IRS has audited you and is proposing additional taxes.
Should you hire a tax attorney?
Yes. You should never respond to an audit report without proper representation. A tax attorney for IRS audit defense will respond strategically and protect your financial and legal interests.
CP3219A – Statutory Notice of Deficiency
Also known as a “90-day letter,” this notice gives you the opportunity to challenge a tax assessment in Tax Court.
What it means: The IRS intends to assess additional taxes unless you file a petition within 90 days.
Should you hire a tax attorney?
Absolutely. This is a critical legal deadline. Only a licensed tax attorney can petition the U.S. Tax Court and fight for a fair outcome.
Letter 6173 / 6174-A – Cryptocurrency Noncompliance
As digital currency becomes more common, so do these notices. They are sent to taxpayers who may not have properly reported cryptocurrency transactions.
What it means: You’re under IRS scrutiny for crypto-related tax issues.
Should you hire a tax attorney?
Yes. A cryptocurrency tax attorney can help you navigate this evolving area of law and avoid significant fines or charges.
Do You Always Need a Tax Attorney?
Not every notice demands legal representation. Examples of relatively minor notices include:
- CP01 – Identity theft confirmation
- CP05 – Refund held for review
- CP88 – Tax return not filed
Still, if you’re unsure how to respond—or if multiple notices start stacking up—it’s best to consult with a tax attorney in California before taking action.
Why Choose The Law Office of Pietro Canestrelli, A.P.C.?
Our firm brings deep knowledge of IRS procedures, insider experience, and an unwavering dedication to resolving your tax issues quickly and effectively. We serve clients throughout California and the United States in matters including:
- IRS audit representation
- Offer in Compromise negotiation
- Installment agreement structuring
- Penalty abatement and appeals
- Cryptocurrency tax compliance
- Business tax resolution
- Emergency defense against IRS liens and levies
Our offices in Temecula and San Diego are here to support you wherever you are in your tax journey.
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Whether it’s a CP2000 notice, a statutory notice of deficiency, or a cryptocurrency tax letter, understanding what an IRS notice means and responding with the right legal strategy is crucial. Ignoring or mishandling an IRS letter can lead to steep financial penalties—or worse.
If you’re unsure about how to respond or feel overwhelmed by the IRS’s demands, don’t go it alone. Contact The Law Office of Pietro Canestrelli, A.P.C. today for a personalized consultation and powerful legal defense.
