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IRS LETTER 525

30-Day Examination Report

Quick answer

Audit results. The IRS proposes changes to your return and gives you 30 days to agree or appeal.

What is an IRS Letter 525 notice?

Audit results. The IRS proposes changes to your return and gives you 30 days to agree or appeal.

A Letter 525 is a review of specific items on a return. It is not, by itself, a finding that anything was done wrong. For the IRS's own overview of notices and letters, see the official Understanding Your IRS Notice or Letter page on IRS.gov.

What does a Letter 525 look like?

A genuine Letter 525 is a paper notice with the notice number "Letter 525" printed in the upper-right corner, the tax year it concerns, a short plain summary of the issue, the amount involved (if any), and a section explaining how and by when to respond.

When reading a Letter 525, it helps to locate four things: the notice code (so you know which notice it is), the tax year it applies to, any dollar amount, and the response or payment date. Those four details tell you most of what the notice is about.

Why did the IRS send a Letter 525?

Concludes a correspondence or office audit.

Is a Letter 525 real, or a scam?

Scam letters sometimes imitate IRS notices. A real Letter 525 arrives by mail, shows an official notice number, and never demands payment by gift card, wire, or cryptocurrency, and never threatens immediate arrest.

How time-sensitive is a Letter 525?

The response date for a Letter 525 is the date printed on the notice itself. Always go by that printed date and confirm it against your own copy — do not rely on a general estimate.

What happens if you don't respond to a Letter 525?

Ignoring an IRS notice generally makes the situation harder to resolve — interest and penalties can continue to build, and the IRS can send further notices or take further action. It is almost always better to review the notice and respond by the printed date.

General next steps

In general, these are some of the steps people take for this type of notice — not advice about your specific situation.

When to get help

Many notices can be reviewed and handled by reading them carefully. For serious or confusing ones, or if you are unsure, contact the IRS at the number printed on the notice, or a licensed tax professional — a CPA, an Enrolled Agent, or a tax attorney.

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Related IRS notices

CP3219A
Statutory Notice of Deficiency
Letter 566
Audit Initiation Letter
CP75
EITC Audit — Documentation Requested
CP05A
Refund Review — Documents Required

Further reading

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IRS Letter 2205: Understanding an Audit Appointment Request
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Learn what IRS power of attorney allows, who can represent a taxpayer, how Form 2848 differs from Form 8821, and how submission works.
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Learn when the IRS may reduce interest for an unreasonable error or delay, how Form 843 works, what evidence matters, and how appeals proceed.
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IRS Form 872: What Extending the Audit Statute Means
Learn what IRS Form 872 extends, how fixed and open consent periods differ, which terms can be limited, and what happens without consent.
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IRS Form 4549: How to Read Income Tax Examination Changes
Learn what IRS Form 4549 shows, how to read audit adjustments, what signing means, and how agreement, appeal, and later review differ.
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Learn how the IRS accuracy-related penalty works, what counts as negligence or understatement, and how disputes and relief are handled.
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See how an IRS audit moves from the first letter through records review, proposed findings, appeal options, and the final closing notice.
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IRS Audit Reconsideration: When You Can Ask for Another Review
Learn when IRS audit reconsideration is available, what new evidence matters, how to prepare a request, and what happens after review.
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How Far Back Can the IRS Audit? Three, Six and No Limit
The IRS generally has three years to assess tax, six when income was substantially omitted, and no limit at all when no return was filed.
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IRS Audit Red Flags: What Actually Raises Your Audit Odds
What actually raises IRS audit odds, using published examination coverage rates by income band, plus the common notices that are not audits at all.
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Frequently asked questions about the Letter 525

What is an IRS Letter 525 notice?

Audit results. The IRS proposes changes to your return and gives you 30 days to agree or appeal.

Why did I receive a Letter 525?

Concludes a correspondence or office audit.

What does a Letter 525 look like?

A genuine Letter 525 is a paper notice from the IRS with the notice number "Letter 525" printed in the upper-right corner, the tax year it concerns, a short summary of the issue, and a section explaining how and by when to respond.

How time-sensitive is a Letter 525?

The response date for a Letter 525 is the date printed on the notice itself. Always go by that printed date and confirm it against your own copy — do not rely on a general estimate.

Is a Letter 525 a scam?

Some scam letters imitate IRS notices. A real Letter 525 arrives by mail, shows an official notice number, and never demands payment by gift card, wire transfer, or cryptocurrency, and never threatens immediate arrest. When in doubt, verify by calling the IRS at 1-800-829-1040.

What happens if I ignore a Letter 525?

Ignoring an IRS notice generally makes things harder to resolve — interest and penalties can continue to build and the IRS can send further notices or take further action. It is almost always better to review it and respond by the printed date.

Do I need a tax professional for a Letter 525?

Many notices can be reviewed and handled by reading them carefully and responding as instructed. For serious or confusing notices, or if you are unsure, a CPA, Enrolled Agent, or tax attorney can help. This is educational information, not advice about your situation.

How do I know a Letter 525 is really from the IRS?

The IRS initiates contact about a notice by mail, not by unsolicited email, text, or phone. A real Letter 525 has an official notice number and references a specific tax year. You can confirm any notice by calling the IRS directly using the number on IRS.gov.

Tax Panic provides educational information only. This is not tax or legal advice, does not interpret your legal rights, and does not tell you what to do about your specific situation. Not affiliated with the IRS. For your situation, contact the IRS at the number on your notice or a licensed tax professional.