Records were not provided
The IRS did not receive requested documents before preparing the examination report.
IRS Letter 525 • General 30-Day Letter
Received IRS Letter 525?
The IRS completed an examination and determined that you owe additional tax, penalties, or other amounts for the years listed in the letter.
This is an opportunity to request administrative review. If you disagree, the IRS says to file your protest within 30 days from the letter date to request review by the Independent Office of Appeals.
There is no fee to book the call. No documents are required when booking. Have the complete Letter 525 and earlier IRS correspondence available during your call.
Sonya D. Bright, EA
Baytown-Based
Virtual Nationwide Service
What Letter 525 Means
The IRS examiner is proposing changes
Letter 525 is generally sent with a computation report and explanation of proposed adjustments. It outlines the choices to agree, provide additional information, or request an administrative appeal.
Review the complete examination report, explanation of adjustments, proposed tax, penalties, and every enclosed agreement or waiver form.
Why It Was Sent
The examination produced proposed adjustments
Records were not accepted
The examiner determined the documents did not substantiate the return position.
Legal position differs
The taxpayer and examiner disagree about how the tax law applies to the facts.
Deductions disallowed
The IRS determined that records did not adequately support claimed expenses, losses, or deductions.
Income or credits adjusted
The examination changed reported income, withholding, filing status, dependents, or credits.
Penalties proposed
The report may include accuracy-related or other penalties that require separate review.
Response Choices
Agree, resolve it with the examiner, or request Appeals
If you agree
Follow the letter instructions and sign the enclosed agreement or waiver form. Review the tax, penalties, interest, and payment options before signing.
If additional records may resolve it
Provide the examiner with the missing information within the stated time and clearly connect each record to the disputed adjustment.
If you request Appeals
Submit the required small-case request or formal written protest to the office shown on Letter 525 within the deadline.
Records To Review
Have these available for the call
- Every page and enclosure from Letter 525
- The examination report and explanation of changes
- Draft written protest or Form 12203, if applicable
- Examiner correspondence and information requests
- Copies of records previously submitted
- The filed federal return and schedules
- W-2s, 1099s, K-1s, and corrected forms
- Broker statements and cost-basis records
- Retirement rollover or exception records
- Business income and expense records
- Calculations for disputed tax and penalties
- Proof of mailing or upload for prior responses
Written Protest
The protest must identify the disputed issues
Publication 5 explains that the protest should be sent to the IRS address in the letter within the stated time. A small-case request may be available when the amount for each tax period is $25,000 or less. A formal protest is generally required when a period exceeds $25,000 and in certain case types regardless of amount.
Audit Report
Review each adjustment separately
Facts and substantiation
Match each disputed issue to the documents, testimony, return position, and tax law supporting the taxpayer’s treatment.
Penalties
Review the stated legal basis, supervisory approval when applicable, reasonable-cause facts, and whether the penalty calculation is correct.
What Happens Next
The case may be resolved or move forward
Examiner revises the report
New records may resolve some or all disputed adjustments before Appeals.
Appeals conference
Appeals reviews the developed facts, law, and hazards of litigation independently from Examination.
Notice of Deficiency
If a proposed deficiency remains unresolved, the IRS may issue Letter 531 or another statutory notice with Tax Court rights.
Frequently Asked Questions
IRS Letter 525 questions
Is Letter 525 a bill?
No. It presents proposed examination changes and options for responding.
How is Letter 525 different from Letter 531?
Letter 525 generally gives 30 days to request an administrative appeal. Letter 531 is a statutory Notice of Deficiency with a Tax Court petition deadline.
Can I use Form 12203?
It may be used for an eligible small-case request. Review Publication 5 and the instructions enclosed with Letter 525 before choosing the protest format.
Can I send new records to Appeals?
Yes, but Appeals may send new information back to Examination for initial review, which can delay the case.
Is there a fee to book?
No. There is no fee to book the call. Professional work requires a separate written engagement.
Can TaxDecoders help?
Representation options may be discussed after the notice, deadline, return, earlier correspondence, and disputed items are reviewed.
Verified Resources
Official IRS information
This page was reviewed on July 27, 2026. Always follow the date and instructions printed on your actual notice.
Appeal letters and notices
Your appeal rights
The examination process
Protect the 30-day opportunity to request Appeals review.
Book a call with TaxDecoders. Have the complete Letter 525, examination report, filed return, prior responses, and supporting records available during the call.
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