IRS Letter 525: Audit Results and Your 30 Days to Respond
Letter 525 tells you the results of your audit and what the IRS wants to change. You have 30 days to agree, send more information, or appeal.
Have a CPA review my Letter 525Letter 525 is often called a 30-day letter. It comes with an examination report showing the changes the IRS proposes to your return and the additional tax, penalties, and interest.
You can agree and sign the report, send more documentation, or file a written protest asking for a review by the IRS Independent Office of Appeals. If you do nothing, the IRS issues a Notice of Deficiency, which leaves Tax Court as your main option.
Where this notice falls in the IRS process
- Letter 566 — audit begins
- You send documentation
- Letter 525 — proposed changes — you are here
- 30 days to agree, add information, or appeal
- Notice of Deficiency if unresolved
What the IRS can do now
- Assess the proposed changes if you sign the agreement form.
- Send a Notice of Deficiency if you don't respond within 30 days.
What the IRS generally can't do yet
- Assess the additional tax yet, unless you agree to it.
- Take away your right to an Appeals review if you file a timely protest.
Your options
Agree
If the changes are correct, sign the report. You can then pay or set up a payment plan.
Send more information
If something was missed, send documentation to the examiner before the deadline.
Partially agree
Agree to the items that are right and protest the rest.
Appeal
File a written protest to get an independent review by IRS Appeals, often a chance to settle disputed items.
Ask for penalty relief
Penalties in the report can sometimes be removed for reasonable cause.
What not to do
- Let the 30 days pass. You lose the easiest route to Appeals.
- Sign just to make it go away. Make sure every change is right first.
- Assume the penalties are automatic. They can often be challenged.
Got a Letter 525? Let's review the results before you sign.
Tiffany V., CPA can check the examiner's changes, respond with what was missed, or prepare your protest to Appeals.
Book my CPA reviewFrequently asked questions
How long do I have to respond to Letter 525?
30 days from the date on the letter.
What if I disagree with the audit results?
Send more documentation, or file a written protest asking for a review by the IRS Independent Office of Appeals.
What happens if I don't respond?
The IRS sends a Notice of Deficiency (a 90-day letter). After that, the main way to dispute the changes is to petition the U.S. Tax Court.
Can I get a payment plan for the audit balance?
Yes. Once the tax is assessed, you can set up an installment agreement like any other balance.
Written by Tiffany V., CPA, founder of Cents Savvy LLC. Last reviewed October 2026. This page is general information, not tax or legal advice for your situation. Cents Savvy LLC is a private CPA firm and is not affiliated with the IRS. Always follow the dates printed on your own notice.