IRS Letter 525 – The IRS is Auditing Your Form 1040 and Needs a Response From You

An IRS auditor made changes to your tax return and you have a right to appeal the changes.

View letter 525 image

Type of notice: Return accuracy

Most common tax problem area: IRS audits

Other tax problem areas: IRS penalties, IRS bill for unpaid taxes

Why you received IRS Letter 525

  1. The IRS selected your tax return for an audit.
  2. The audit resulted in the IRS proposing changes to your tax return.
  3. The IRS is proposing additional tax, penalties, and interest (or in some cases a refund due).

Your options to address IRS Letter 525

  1. Dispute the taxes you owe
  2. Dispute the penalties

Notice deadline: 30 days

If you miss the deadline: You will lose your right to appeal the auditor’s changes with the IRS Office of Appeals and the IRS will issue a notice of deficiency. This notice gives you 90 days to petition the U.S. Tax Court.

Want more help?

See your local tax pro for a free consultation.

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