Glossary

Letter 525 (30-day letter)

Letter 525 is the IRS examination report and 30-day letter issued at the end of an audit, proposing changes to your return and giving you 30 days to agree or to protest to the Independent Office of Appeals.

How it works

At the end of an audit, Letter 525 transmits the examination report and gives 30 days to agree, by signing the report and paying, or to protest to the Independent Office of Appeals with a written statement of the disputed items and reasons. Doing nothing leads to a notice of deficiency and the 90-day Tax Court clock.

Why it matters

The 30-day letter is where most audit disputes are settled, because Appeals can weigh litigation hazards and the examiner cannot.

Related: IRS Independent Office of Appeals, notice of deficiency.

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Where this comes up in our work

IRS audit defense

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Definitions are general information, not legal advice, and may not reflect the most recent changes in law.

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