IRS Certified Letter: What It Means and What to Do Next

Receiving a certified letter from the IRS can be alarming. For many Orange County taxpayers, the thought of dealing with the IRS brings immediate stress and uncertainty. However, not all IRS-certified letters mean trouble—some require urgent attention, while others simply provide important information. Understanding what your letter means and taking the right steps can prevent serious tax issues.

As the leading tax resolution experts in Orange County, Boulanger CPA and Consulting PC specializes in helping individuals and business owners navigate complex IRS matters. If you’ve received a certified letter from the IRS, here’s what you need to know.

Why Did I Receive a Certified Letter from the IRS?

The IRS typically sends certified mail when the matter is serious and requires immediate attention. Common reasons include:

• Final Notices of Tax Due (CP504, LT16, LT11, or Letter 1058) – These letters indicate unpaid taxes and can be precursors to enforced collection actions like liens or levies.
  
• Notice of Deficiency (CP3219A) – This means the IRS has made changes to your tax return, often leading to an increased tax liability.
• Audit Notifications – If the IRS is auditing your tax return, they will notify you via certified mail.
  
• Collection Due Process (CDP) Notices – These letters provide you with the right to appeal before the IRS initiates collection actions.
  
• Summons or Legal Notices – In rare cases, the IRS may summon you for more information regarding your taxes or business activities.

Ignoring these letters can lead to escalating penalties, wage garnishments, or bank levies.

Understanding the Different Types of IRS Certified Letters

Final Notice of Intent to Levy (Letter 1058 or LT11)

This is one of the most serious IRS notices. It serves as a final warning before the IRS begins levying your assets, including wages, bank accounts, or property. If you receive this letter, immediate action is required to prevent enforced collection.

CP504 – Urgent Tax Due Notice

A CP504 notice is sent when you have an outstanding balance, and the IRS is preparing to levy your state tax refund. While it is not yet an intent to levy wages or bank accounts, ignoring this notice will escalate your tax issue.

CP3219A – Notice of Deficiency

This notice is sent when the IRS has made adjustments to your tax return, resulting in additional tax liability. You have the right to challenge the proposed changes by filing a petition with the U.S. Tax Court within 90 days.

Audit Notifications (Letter 2205 or 566)

These letters inform you that the IRS is auditing your return. The IRS may request documentation to verify deductions, income, or credits claimed on your tax return. Professional representation is crucial to avoid potential penalties.

Collection Due Process (CDP) Notices

If the IRS is planning collection action against you, they must send a Collection Due Process notice, giving you the right to appeal before further action is taken. This is your opportunity to dispute the IRS’s claims or negotiate a payment plan.

What Should You Do If You Receive a Certified IRS Letter?

If you receive a certified letter from the IRS, follow these steps:

1. Do Not Ignore It – Many IRS notices come with strict deadlines. Failure to respond could result in penalties, interest, or enforcement actions.
   
2. Read It Carefully – Identify the letter’s notice number (usually found in the top right corner) and understand its purpose.
   
3. Assess Your Tax Situation – Check your tax records to see if the issue is valid.
   
4. Seek Professional Help – IRS tax issues can be complex. Consulting a tax resolution specialist like Boulanger CPA and Consulting PC in Orange County can help you determine the best course of action. You don't need to deal with the IRS alone.
   
5. Respond Promptly – Whether it requires payment, additional documentation, or an appeal, acting quickly can prevent severe consequences.

Common Mistakes Taxpayers Make When Receiving an IRS Certified Letter

Ignoring the Notice

Many people ignore IRS notices out of fear. However, avoiding the problem will not make it go away and can result in wage garnishments, bank levies, or property liens.

Responding Without Understanding the Issue

Some taxpayers respond hastily, agreeing to IRS demands without fully understanding their rights or potential alternatives. Consulting with a tax professional ensures that you explore all options.

Attempting to Handle Complex IRS Matters Alone

While some simple notices can be resolved independently, more serious letters, such as audit notifications or deficiency notices, require professional representation to protect your financial interests.

How Boulanger CPA and Consulting PC Can Help

At Boulanger CPA and Consulting PC, we specialize in tax resolution services for Orange County residents and business owners. We can help you:

• Guide You - We can advise what to do if you receive an IRS letter
• Understand Your IRS Letter – We analyze your situation to determine the best course of action.
  
• Negotiate with the IRS – Whether it’s setting up an installment agreement, filing an Offer in Compromise, or appealing an IRS decision, we advocate for your best interests.
  
• Prevent IRS Collections – We help stop wage garnishments, bank levies, and tax liens before they escalate.
  
• Provide Audit Representation – If you are facing an IRS audit, we ensure your rights are protected and help you navigate the process effectively.

Contact Boulanger CPA and Consulting PC Today

If you’ve received a certified letter from the IRS and are unsure how to proceed, contact Boulanger CPA and Consulting PC today. Our experienced tax professionals help Orange County taxpayers resolve IRS issues quickly and effectively.

📞 Call us at 657-218-5700
📧 Email us at marc@boulangercpa.com

Don’t let an IRS-certified letter disrupt your peace of mind—act now to protect your financial future!