Skip to main content
All IRS Notices
Time-Sensitive

IRS Notice Letter 525

Audit Notice

You're being audited. The IRS wants to examine specific items on your tax return and is requesting documentation.

Response Deadline
Varies (typically 30 days)
From the date on the notice
Talk to a Tax Attorney
(877) 829-5267
Free, confidential consultation
Legally reviewed byGregory McCauley Jr., Esq.

Tax Attorney · Villanova University School of Law · Admitted in Delaware, New Jersey, United States Tax Court

Last reviewed

What Happens If You Ignore Notice Letter 525

Failure to respond or provide documentation can result in the IRS disallowing deductions and assessing additional taxes.

Every day you wait, penalties compound, interest accrues, and your options shrink. The IRS does not negotiate well with silence — they escalate.

What You Should Do Right Now

Don't panic. Gather the requested documents and consider having professional representation during the audit.

  1. 1

    Do not call the IRS phone number on the notice until you've spoken with an attorney — anything you say can be used against you.

  2. 2

    Gather every page of the notice plus any prior IRS correspondence about the same tax year.

  3. 3

    Call a senior tax attorney (not just any CPA or preparer) so attorney-client privilege protects the conversation.

  4. 4

    Respond before the deadline — even a properly filed request for an extension or hearing buys you protection.

Why a Tax Attorney — Not a "Tax Relief" Company

Attorney-Client Privilege

Your conversations are legally protected. CPAs and enrolled agents do not have this protection in criminal or sensitive matters.

30+ Years vs. the IRS

Our attorneys have negotiated thousands of cases. We know which IRS agents to call and what arguments actually work.

We Stop Collections

Properly filed responses can immediately pause levies, garnishments, and asset seizures while we negotiate.

Real Legal Representation

If your case escalates to Tax Court, U.S. District Court, or criminal exposure, we can represent you there. Most firms cannot.

Call (877) 829-5267

Costly Mistakes People Make With Notice Letter 525

  • Assuming it's a mistake and throwing it away — the IRS computers move on whether you respond or not.

  • Paying the amount listed without verifying it — the IRS is wrong more often than people realize.

  • Calling the IRS without preparation and admitting facts that worsen the case.

  • Signing a payment agreement that locks in penalties you could have abated.

IRS Notices Related to Letter 525

These are the notices the IRS most often sends before, after, or alongside a Letter 525. Read the related ones to understand where you are in the collection sequence.

Tax Resolution Services That Resolve a Letter 525

Senior tax attorneys at McCauley Law Offices use these strategies to stop, settle, or unwind a Letter 525 notice.

Primary Sources & Authority

We cite the underlying IRS publications and statutes so you can verify everything on this page.