How to Read an IRS Letter About Your US LLC (Foreign Owner Guide)

An IRS letter sent to your US LLC tells you what it is about in its upper right corner, and the date to act by is in the text. Find the notice number first, then the due date, then the amount, and you know most of what you need.

For the notices most often sent to a foreign-owned LLC, see CP215, CP575 and Letter 147C explained.

In short:

• The IRS says the CP or LTR number is in the upper-right corner of the letter.
• If the IRS asks you to respond, act by the due date; to guarantee your appeal rights, reply by it.
• CP575 and Letter 147C are about your EIN. CP215 (business accounts) and CP15 (individual accounts) are Notices of Penalty Charge.
• A penalty is not always final, but no outcome is guaranteed. The IRS decides.
• Melya explains the letter. Preparing a response is a separate service. We do not represent you before the IRS.

How to read any IRS letter

1. Notice number. In the top right corner (CP for notices, LTR for letters). Search it on the IRS "Understanding your notice" pages.
2. Date and tax period. Check the date of the letter and the year or form it concerns (for example Form 5472 for 2024).
3. Due date. If the IRS asks for a response, note the date and put it in your calendar.
4. Amount. Penalty, tax, interest. The IRS says that if you owe, you should pay by the due date, even partially, to reduce interest and penalty charges.
5. Contact details. Use the number or address on the letter. If a letter looks suspicious, the IRS page says to call 800-829-1040 and follow the representative's instructions.
6. What it asks. Agree, disagree, pay, or just keep it.

Mail to a foreign-owned LLC often goes to the registered agent, so the letter may reach you late. Ask for a scan quickly: what counts is the due date printed on the notice, not the day the letter reached you.

Common letters for a foreign-owned LLC

CP15 versus CP215: which one a foreign-owned LLC receives depends on the account the IRS charged. For a Form 5472 attached to a Form 1120 the IRM names CP 215. The $25,000 amount is stated in the Form 5472 instructions for a failure to file when due and in the manner prescribed.

Letters about your EIN: CP575 and 147C

The CP575 is the notice that confirms an EIN. The original paper notice cannot be duplicated or recreated, according to the IRS. When a bank, Stripe or another platform asks for proof, Letter 147C is the usual document. See how to request the 147C and what to do with a lost EIN. To get an EIN without an SSN, read EIN for a US LLC without an SSN.

Penalty letters about Form 5472

If the IRS charged a penalty on a Form 5472, three things matter:

• Which year and form. Match the letter to the return. Our guide on the Reference ID number helps when a notice cites an ID.
• The amount and the 90-day rule. The instructions say an additional $25,000 applies with respect to each related party for which a failure occurs, for each 30-day period (or part of one) that continues after the 90-day period, if the failure continues more than 90 days after IRS notification. If returns are missing, filing them quickly matters: see catching up on missed years.
• Your response. The regulation (Treas. Reg. 1.6038A-4(b)) allows the IRS to waive the penalty where the LLC acted in good faith and there is reasonable cause. Our abatement letter guide has the template and the first-time abatement rule. The relief checker shows what the IRS manual describes. Melya promises no outcome.

Example: reading a penalty notice step by step

Imagine a notice in the upper right corner that reads CP215, dated in the autumn, naming your LLC's EIN and a tax period. You would do the following. First, confirm that the EIN and the period match a Form 5472 you know about. Second, read the amount and the due date. Third, ask which situation applies: was a Form 5472 never filed, filed late, or filed but incomplete? The instructions treat a substantially incomplete form as a failure to file, so the answer changes what you send. Fourth, gather the facts that explain what happened (when the owner learned of the rule, what was done once known). Those facts are what a reasonable cause statement is built from. This is a description of the process, not a prediction: the IRS decides each case.

What an IRS letter does not mean

• It does not always mean you did something wrong: CP575 and 147C are simple confirmations.
• It does not always require a reply: the IRS asks for a response only when the notice says so.
• It is not the same as a state letter. A Wyoming or Delaware notice comes from the state, not the IRS, and has its own deadline. Our Wyoming annual report guide and Delaware annual tax guide cover the usual ones. Melya's letter service also covers state letters.
• It does not change your obligations for next season. See the Form 5472 checklist for 2027 and what a foreign-owned LLC files each year.

What to do first, in order

• Photograph or scan the whole letter, both sides.
• Write down the notice number, date, due date and amount.
• Find the return it concerns in your records.
• Read the whole letter before paying or answering, but do not let the due date pass.
• If you disagree, reply by the due date with copies of supporting documents.
• Keep proof of every fax or mailing.

How Melya helps

IRS Letter Explained in 24 Hours is $49. You send the letter through the secure portal; within 24 hours you get, in English or French, what it says, the deadline and what to do next. If a response is needed, preparing it is a separate service (IRS Notice / Penalty Response Support, from $350, with the price confirmed before work starts). Melya's founder holds a PTIN: we do not represent you before the IRS, and we do not advise on your country of residence.

Related reading: Form 843 instructions, line by line

Frequently asked questions

Where is the notice number on an IRS letter?

The IRS says the CP or LTR number is in the upper-right corner of the letter.

Do I have to answer every IRS letter?

No. Respond only if the letter asks you to, and by the due date. Some notices, like a CP575, are for your records.

Is a CP215 penalty final?

Not necessarily. The IRS says to contact it if you disagree, and a reasonable cause statement can be filed. Relief is not guaranteed.

Can Melya talk to the IRS for me?

No. Melya does not represent clients before the IRS. We explain the letter and, as a separate service, prepare a response you sign.

What if the letter looks fake?

The IRS says to call 800-829-1040 and follow the representative's instructions.

I lost my CP575. Can I get a copy?

The IRS says the original cannot be duplicated or recreated. You can request Letter 147C or use the digital CP575 if eligible.

Sources

• IRS, If you receive an IRS notice or letter
• IRS, Understanding your CP215 notice
• IRS, Understanding your CP575 notice
• IRM 21.8.2 and IRM 20.1.9
• IRS, Instructions for Form 5472
• 26 CFR 1.6038A-4