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.
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
- The IRS selected your tax return for an audit.
- The audit resulted in the IRS proposing changes to your tax return.
- The IRS is proposing additional tax, penalties, and interest (or in some cases a refund due).
Your options to address IRS Letter 525
- Dispute the taxes you owe
- 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.
Get help from an IRS expert
H&R Block’s experts can solve any IRS problem, no matter how complex.
Learn what the IRS is looking for during an audit, the steps you should take to prepare for an IRS audit, and when it's best to get expert help.
Get the facts about IRS mail audits from the tax experts at H&R Block. Learn how to respond and how long you can expect the audit to last.
Learn how to address and understand an IRS tax penalty from the tax experts at H&R Block.
Separate fact from fiction when it comes to IRS audits. Learn what causes tax audits, what happens during an audit, and what to do if you get an IRS letter.
How long you can expect your IRS audit to last depends on the type of audit and the scope. Learn how to efficiently wrap up an audit from the tax experts at H&R Block.
Nobody wants a letter from the IRS -- but you shouldn't ignore one. Here's what happens if you ignore an IRS audit, and how you should respond to the IRS.
Learn the three main benefits of engaging a power of attorney to research your IRS account and resolve your tax problems. Get the facts from the experts at H&R Block.