IRS Letter 525: Examination Report — 30-Day Letter

What the IRS says: “The IRS examined your return, is proposing changes in the enclosed report (Form 4549), and gives you 30 days to agree or appeal.” Here’s what it actually means, your deadline, and exactly how to respond.

Underreporter & AuditRespond promptlyDeadline: 30 daysFree response letter draft

What Letter 525 actually means

The '30-day letter' closes the audit's fieldwork stage. Sign and the changes become final; disagree and you have exactly one inexpensive window to reach IRS Appeals — an office that settles the majority of cases it hears, weighing the hazards of litigation. Do nothing and a Notice of Deficiency (90-day letter) follows.

Notice family: Underreporter & Audit — The IRS thinks your return doesn't match its records — or wants to examine it. These notices carry hard response deadlines, and a written response with documentation is exactly how they get resolved.

Your deadline

30 days — to agree or file a protest for IRS Appeals.

Counted in calendar days from the notice date. The exact respond-by date printed on your notice always controls — check page 1.

Why you received Letter 525

What to do about Letter 525

1

Step 1

Read Form 4549 line by line — identify which adjustments you actually contest

2

Step 2

Agreeing: sign, return, arrange payment; interest runs from the original due date

3

Step 3

Disagreeing: file a written protest (formal protest over $25,000; small-case request under) within the 30 days

4

Step 4

Keep pushing documentation to the examiner meanwhile — cases still close at exam

How to respond

The written protest is a structured response letter: each disputed adjustment, the facts, the law you rely on, and a penalties paragraph. A well-organized protest is the single highest-leverage document in the audit process.

Draft a Letter 525 response letter now ↓

Draft your response letter

Describe the notice and your side of it — use placeholders, never your SSN or account numbers (the letter keeps [YOUR NAME]-style fields so you fill in the real details privately before mailing). A mail-ready draft with an enclosure checklist comes back in ~20 seconds.

Your IRS response letter draft will appear here.

Frequently asked questions

What does IRS Letter 525 mean?

The IRS examined your return, is proposing changes in the enclosed report (Form 4549), and gives you 30 days to agree or appeal. In practice: The '30-day letter' closes the audit's fieldwork stage. Sign and the changes become final; disagree and you have exactly one inexpensive window to reach IRS Appeals — an office that settles the majority of cases it hears, weighing the hazards of litigation. Do nothing and a Notice of Deficiency (90-day letter) follows.

How long do I have to respond to Letter 525?

You generally have 30 days — to agree or file a protest for IRS Appeals. The respond-by date printed on your own notice always controls.

Should I respond to Letter 525 in writing?

The written protest is a structured response letter: each disputed adjustment, the facts, the law you rely on, and a penalties paragraph. A well-organized protest is the single highest-leverage document in the audit process.

Related IRS notices