What Happens If You Ignore IRS Notices?

Ignoring IRS notices can lead to additional letters, continued account activity, and possible changes to your tax account depending on the type of notice involved.Some IRS notices are informational, while others may involve deadlines, balances, refund reviews, or requests for additional information.

Why Does the IRS Send Notices?

The IRS sends notices for many reasons, including:

  • Balances due
  • Refund delays
  • Identity verification
  • Income reporting differences
  • Changes to tax returns
  • Requests for documentation

What Happens If You Ignore an IRS Notice?

What happens next depends on the specific notice. In some cases, the IRS may continue processing account changes or send additional notices.

Ignoring notices may also result in:

  • Additional IRS letters
  • Continued penalties or interest
  • Refund delays
  • Ongoing account review

Common IRS Notices People Ignore

  • CP14 – balance due notice
  • CP501 – reminder notice
  • CP503 – urgent reminder notice
  • CP504 – collection warning notice
  • CP2000 – income mismatch notice
  • CP05 – refund review notice
  • 5071C – identity verification notice

Can Ignoring IRS Notices Increase Penalties?

Depending on the type of notice and account situation, penalties and interest may continue increasing while balances remain unresolved.

Can Ignoring IRS Notices Delay Refunds?

Yes. Some notices involve refund reviews or identity verification requests that may delay refund processing.

Can IRS Notices Be Mistakes?

Sometimes notices are triggered by delayed payments, incorrect reporting, missing forms, or processing issues. Reviewing notices carefully is generally recommended.

What Should You Do After Receiving an IRS Notice?

You may wish to:

  • Read the notice carefully
  • Review the notice number
  • Compare the information with your records
  • Review any deadlines listed on the notice

If you have questions about the notice, you may wish to contact the IRS or a qualified tax professional.

Bottom Line

Ignoring IRS notices may lead to additional notices, continued account activity, penalties, interest, or refund delays depending on the type of notice involved.

Reviewing notices carefully can help you better understand what information the IRS is providing and whether additional action may be needed.

Disclaimer: This article is for informational purposes only and does not constitute tax, legal, or financial advice.