Letter 950 is a "30-day letter." The IRS sends it when an audit ends with proposed changes you haven't agreed to. According to the Internal Revenue Manual, it is the 30-day letter used for deficiency cases in field examinations, the in-person audits handled by revenue agents, often for businesses and self-employed people. It comes with the examiner's report and explains your right to appeal. Nothing has been assessed yet. You have about a month to decide whether to agree or to take the dispute to the IRS Independent Office of Appeals, which is separate from the examination staff.
Why you got a Letter 950
An in-person examination of your return, at your home, business, an IRS office or your representative's office, has ended, and you and the examiner did not reach full agreement. The IRS describes Letter 950 as the letter for unagreed cases with a straight deficiency (more tax), a straight overassessment (less tax), or a mix of both. It can be used for several types of tax.
There are variations: Letter 950-F is used for overassessment and "no-change with adjustments" cases, 950-B when the taxpayer is in bankruptcy, and 950-Z for large business audits. The choices described below work much the same way. Office audits held at an IRS office usually end with a different 30-day letter, Letter 915, and audits by mail with Letter 525.
What the Letter 950 says
Look for:
- The letter date. Your 30 days generally run from it.
- The examination report, for individuals usually Form 4549-A, listing each adjustment, the tax change and any penalties, with an explanation of items.
- An agreement or waiver form, usually Form 870, to sign if you accept the changes.
- Instructions for requesting an Appeals conference and a copy of Publication 3498, The Examination Process.
- The group manager's contact details. IRS rules require 30-day letters to be signed by the examiner's group manager.
What to do
- Note the response date, generally 30 days from the letter date.
- Review every adjustment in the report with your records and, ideally, your representative.
- Decide whether to agree, agree in part, or appeal.
- Respond in writing to the office and address on the letter before the deadline. Keep copies and proof of mailing.
If you agree
Sign and return the waiver or agreement form. You can pay without waiting for a bill; interest generally runs from the return's original due date until you pay. If you can't pay in full, look at payment plans or, if your finances are tight, other options.
If you disagree: request Appeals
Before appealing, Publication 5 recommends making sure the examiner has every document and explanation you want considered. You can also ask to talk with the examiner's supervisor. Then send your appeal request within the time on the letter:
| Proposed tax and penalties | What Appeals requires |
|---|---|
| $25,000 or less for each tax period | A small case request: a brief statement of the disputed issues and why you disagree, or Form 12203 |
| Over $25,000 for any period | A formal written protest covering all periods |
According to Publications 5 and 3498, a formal protest must include a statement that you want to appeal; your name, address and daytime phone; a list of the disputed issues, tax periods and proposed changes, with your reasons for disagreeing with each; the facts and any law supporting your position; and a signed penalties of perjury statement. Partnership and S corporation cases need a formal protest at any amount.
Appeals conferences are informal and may be held by phone, video or in person. You can represent yourself, or be represented by an attorney, CPA or enrolled agent. Appeals can only weigh arguments based on tax law.
If the IRS asks you to extend the statute of limitations
Appeals generally needs at least 365 days left on the time limit for assessing tax when it receives a case. If too little time remains, the IRS may ask you to sign a consent to extend it. Publication 3498 explains your choices: sign an open or fixed-date consent, negotiate a consent limited to certain issues or a shorter period, or refuse. If you refuse, Appeals won't accept the case, and the IRS will take steps to assess, usually by issuing a notice of deficiency.
Fast Track Settlement
Some cases qualify for Fast Track Settlement, where a trained Appeals employee helps you and the examiner reach agreement while the case stays with the examination group. Ask the examiner if you're interested. You keep your regular appeal rights if it doesn't work.
Field audits often involve business records, larger amounts and technical issues. This is a good time to work with a CPA, enrolled agent or tax attorney under a Form 2848 power of attorney. The small business owners hub and self-employed hub explain the records that usually matter.
What happens if you ignore it
If you don't respond within the time on the letter, the IRS sends a statutory notice of deficiency by certified or registered mail. You then have 90 days, or 150 days if it's addressed to you outside the United States, to petition the U.S. Tax Court without paying the tax first. Neither the IRS nor the court can extend that deadline. The court's filing fee is $60 as of 2026 and can be waived for inability to pay; see our CP3219A page for the details. If you don't petition, the tax is assessed and collection begins.
Is this letter real?
A Letter 950 should follow an audit you took part in or were notified of by mail. Confirm it by calling the IRS at a number listed on irs.gov, or through your representative. IRS employees don't demand payment by gift card or wire transfer. See how to spot IRS scams.
Frequently asked questions
Can I go straight to Tax Court instead of Appeals?
Yes, by waiting for the notice of deficiency and petitioning within its deadline. Even then, a Tax Court case is normally sent to Appeals for settlement talks before trial.
What if I agree with some issues but not others?
You can agree to some issues and appeal the rest. Your protest or small case request should list only the issues you dispute.
Can I bring new documents to Appeals?
You can, but if they raise new issues, Appeals will generally send them back to the examiner for review first, which slows things down. It's better to give everything to the examiner.
Does appealing stop interest?
No. Interest keeps running on any tax you end up owing. Publication 3498 explains that an advance payment or a deposit under tax code section 6603 stops interest on the amount paid once the IRS receives it, though interest already built up keeps compounding. Ask your representative which fits.
Sources
- Internal Revenue Service (IRS), "Letters and notices offering an appeal opportunity". irs.gov
- IRS, Internal Revenue Manual 4.10.8.12.1, 30-Day Letters (04-10-2023). irs.gov
- IRS, Publication 5, "Your Appeal Rights and How to Prepare a Protest if You Disagree" (Rev. 4-2021). irs.gov
- IRS, Publication 3498, "The Examination Process" (Rev. 5-2025). irs.gov
- IRS, Publication 556, "Examination of Returns, Appeal Rights, and Claims for Refund" (Rev. 9-2013). irs.gov
- U.S. Tax Court, "Starting a Case". ustaxcourt.gov
IRSV.com is an independent guide and is not affiliated with the IRS. This page is general information, not tax or legal advice. Rules change; confirm details on IRS.gov or with a tax professional. Found an error? Tell us.