Reading an IRS notice without escalating the problem.
A field guide to the notices most companies see — what triggered them, what the deadlines actually mean, and how to respond without making the exposure worse.
Start with the letter type, not the balance.
Every IRS notice carries a code in the upper-right corner — CP or LT followed by a number. The code tells you three things the balance does not: which system generated it, what the agency has already decided, and how many days you have before the next automated step fires.
Treat the code as the entire situation. A CP2000 with a $40,000 proposed adjustment is a very different problem than an LT11 with a $4,000 balance — the LT11 is a final notice of intent to levy, and the calendar is short.
The notices most companies see.
- CP2000 — proposed adjustment from unreported information returns (typically 1099s vs. filed 1120 or 1040).
- CP504 — final balance-due notice before enforced collection begins.
- LT11 / Letter 1058 — final notice of intent to levy, unlocking collection due process rights.
- CP161 — return processed, balance owed on Form 941 or 940.
- CP215 — civil penalty assessed against the entity, typically Form 941 late deposit or 940 late-filed penalty.
- CP136 — annual notification of your Form 941 deposit schedule (monthly vs. semiweekly).
What we do differently.
Murphy Collective's notice triage practice assigns a senior operator on day one. We do not route your case through a call center or a template response. The first deliverable is a written analysis of the specific notice, the underlying account transcript, and the fastest legitimate path to resolution.
Questions we get on this one.
- How urgent is an IRS notice, really?
- It depends entirely on the code. A CP2000 typically gives 30 days to respond; a CP504 gives 21 days before enforced collection; an LT11 gives 30 days and starts a collection due process clock. Reading the code first tells you whether you have weeks or hours.
- Should I call the number on the notice?
- Only after you have pulled the account transcript and understand what the IRS's file actually shows. Calling before you have the transcript typically extends the case and closes off resolution paths (like penalty abatement) that a written response can preserve.
- Can penalties be removed?
- Frequently, yes — through First-Time Abatement, reasonable-cause abatement, or statutory exception. Which one applies depends on the tax period, the compliance history, and the specific penalty code assessed. The wrong request wastes the one-time abatement; the right one closes the exposure.
The right response is written before the call is made.
Every notice we handle starts with the transcript, not the phone. Senior operators, no call centers, no template letters.