USTaxPenaltySaverLetter 525
High Priority30-Day Letter - Examination Changes Proposed
Proposed changes from an IRS examination. You have 30 days to respond.
Response Deadline
30 days from notice date
Respond before this deadline to avoid additional penalties and enforcement action.
What This Notice Means
Letter 525 is sent after an IRS examination (audit) when the examiner proposes changes to your return. You have 30 days to agree with the changes, provide additional information, or request an appeals conference. If you do not respond, a Notice of Deficiency will be issued.
Why You May Have Received This
- 1Selected for audit
- 2Business deductions questioned
- 3Income verification
- 4Large unusual deductions
Required Actions
Review the proposed changes carefully
Gather supporting documentation
Respond within 30 days
Consider requesting Appeals if you disagree
Your Options
Use these calculators to understand your situation and explore resolution options.
Consequences If Ignored
- No response leads to Notice of Deficiency (90-day letter)
- Additional penalties may apply
Tips & Best Practices
- You have a right to appeal before a Notice of Deficiency is issued
- Appeals is an independent function from Examination
- Signing Form 870 waives your right to Tax Court
Related Resources
IRS Resources
Legal References
Ready to Take Action?
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