Running a business is already a lot to manage—then an IRS letter shows up in your mailbox and throws you way off your game. But not every notice is a penalty or audit. In many cases, the IRS is just flagging something that needs attention.
Here are the 5 most common IRS notices sent to business owners, what they mean, and where to learn more about how to respond.
This is one of the most common letters sent to both individuals and businesses. A CP2000 means the income reported on your tax return doesn’t match what third parties (like banks or clients) reported to the IRS.
The notice will usually propose additional taxes, plus interest and possibly penalties. Get the full guide to CP2000 →
A CP171 is a billing notice. It tells you exactly how much you owe the IRS, including your tax balance, any late payment penalties, and accrued interest.
This often follows a previous notice you might have ignored—or forgot to follow up on. It’s a sign you need to act quickly to avoid additional penalties or enforcement actions.
Get the full guide to CP171 →
If you filed Forms 1099-NEC, 1099-MISC, or 1099-INT, and the name and TIN don’t match IRS records, you’ll likely get a CP2100A notice. Sometimes it also means you submitted a 1099 without including a TIN at all.
This notice doesn’t mean you’re being fined—but it’s a warning. If you don’t correct the issue or follow up properly (with B Notices or backup withholding), penalties may follow.
Get the full guide to CP2100A →
A CP259 tells you the IRS expected a return (often a business income or payroll tax return), but didn’t receive it. It might be a mix-up in filing requirements or something more serious, like a missing Form 1120 or 941.
This notice is your opportunity to fix the issue before the IRS assesses a “substitute for return” or penalty.
Get the full guide to CP259 →
The CP276B is a warning notice, not a fine—yet. It means the IRS had a problem with your recent federal tax deposits. One or more of them were either late, insufficient, or not made using the required electronic method.
You may have used paper when you were supposed to e-file, formatted something incorrectly, simply filed too late. Fixing the issue now can help you avoid penalties later.
Get the full guide to CP276B →
Ignoring IRS notices doesn’t make them go away. In fact, many of them are preventable or easily fixed with the right documentation and a quick response.
But the easiest way to avoid them altogether? Stay on top of your books! At LedgerFi, we help businesses file accurately, stay compliant, and keep clean records that stand up to IRS scrutiny.
Check out our IRS Notice Library for more IRS notice breakdowns. From 1099s to payroll to quarterly filings—we’ve got your back.
Need help reviewing a notice or avoiding the next one? Contact LedgerFi today and let’s make IRS mail a non-issue.