You Received a Letter from Hacienda or the IRS: What to Do in the Next 72 Hours

The envelope arrives by mail or appears in SURI. You open it. It is a letter from the Puerto Rico Department of the Treasury (Hacienda) or the IRS.

Many people’s first instinct is to panic, ignore it, or put it in a drawer hoping the problem goes away.

None of those reactions help. What does help is understanding what type of letter it is, what it means, and what you should do — calmly but with urgency.

Why time matters

Notices from Hacienda PR and the IRS come with specific deadlines. If you do not respond within the stated period, you lose important rights.

In Puerto Rico, according to the Department of the Treasury:

"If the notice arises from a deficiency, the debtor shall have thirty (30) days, from the date the notice was deposited in the mail or within any extension granted by the Secretary, if any, to request in writing a reconsideration of the same and an administrative hearing."

Thirty days from the postmark — not from when you opened it. The clock runs from the moment Hacienda sent it.

If you miss that deadline without responding, you lose the opportunity to object and the deficiency determination becomes final.

The most common letter types from Hacienda PR

Not every Hacienda letter means the same thing. These are the most frequent:

Notice of taxes owed

This letter informs you that Hacienda determined you have an outstanding balance. It includes the detail of principal owed, calculated interest, surcharges, and penalties.

It may arise because:

• You filed a return with a balance you did not pay
• Hacienda made adjustments to your return and determined you owe more
• You have IVU returns with unpaid balances

What to do: Verify whether the balance is correct. If it is, evaluate whether you can pay in full or need a payment plan. If you believe there is an error, you have the right to request reconsideration.

Deficiency notice

This is more serious. Hacienda determined you owe more tax than you reported — or tax you never reported. It includes the detail of the adjustment and the basis for the determination.

What to do: You have 30 days to request reconsideration in writing. If you do not respond, the deficiency becomes final and Hacienda proceeds with collection. If you respond and do not reach agreement in reconsideration, you can appeal to the Court of First Instance within 30 days of the final determination.

Information request

Hacienda requests specific documents — invoices, sales records, proof of payment, accounting books — to verify information on your return or investigate possible inconsistencies.

What to do: Respond within the stated deadline with the requested information. Failing to respond to an information request can result in a determination based on available information — generally unfavorable to the taxpayer.

Balance reminder letter

A softer notice indicating you have an outstanding balance and requesting payment. It is generally the first contact before more formal steps.

What to do: Pay the balance or contact Hacienda to establish a payment plan.

The most common letter types from the IRS

CP2000 — Notice CP2000

This is one of the most frequent letters Puerto Rico residents with U.S.-source income receive. The IRS found a discrepancy between what your payers reported (employers, U.S. clients, financial institutions) and what you declared on your federal return.

It is not a formal audit — it is a "proposed adjustment." You have the right to agree, partially disagree, or fully disagree.

Typical deadline: 60 days to respond from the letter date.

CP504 — Notice of Intent to Levy

This letter indicates the IRS intends to levy assets or income to collect debt you have not paid. It is urgent — you generally have 30 days before the IRS can proceed with the levy.

LT11 or Letter 1058 — Final Notice Before Levy

Similar to CP504 but more formal. It is the final notice before the IRS executes a levy. From this letter, you have the right to request a Collection Due Process Hearing within 30 days.

CP88 — Delinquent Return Refund Hold

The IRS is holding your refund because you have unfiled returns from prior years. The path to release the refund is to file the missing returns.

Audit letter (Examination Letter)

The IRS selected your return for review. It may be by correspondence (they request documents) or in person. IRS audits of Puerto Rico residents frequently involve bona fide residence, source of income, and Act 60 compliance issues.

What to do in the first 72 hours

1. Read the letter completely and note the postmark date The deadline to respond is generally counted from the send date, not receipt. Note that date on the envelope before opening it or photograph it.

2. Identify the notice type and deadline Each letter has a reference number (for the IRS) or case/account number (for Hacienda). Find the section stating the response deadline. Write it on your calendar that same day.

3. Do not ignore the letter The problem does not go away. Ignoring a deficiency makes it final. Ignoring an information request results in unfavorable determinations. Ignoring an LP504 or LT11 can result in bank account or wage levies.

4. Do not contact the agency on impulse Before calling Hacienda or the IRS, understand well what the letter says and what you want to achieve. Communications with agencies are documented. Saying something inaccurate or incorrect can complicate your position.

5. Gather relevant documentation Depending on the letter type, locate returns for the years mentioned, payment receipts, withholding statements (W-2, 480.6SP, 1099), and any other documents relevant to the matter the letter addresses.

Your rights as a taxpayer

Both Hacienda PR and the IRS have documented taxpayer rights. In Puerto Rico, the Internal Revenue Code establishes that you have the right to:

• Receive dignified, considerate, and impartial treatment
• Have submitted information kept confidential
• Be notified in writing of any adjustment, with detail of the amount and grounds
• Request reconsideration of a deficiency within the established period
• Designate an authorized representative to act on your behalf before Hacienda
• Appeal to the Court of First Instance if you disagree with the final determination

The right to representation is particularly important. You can designate a CPA, attorney, or other authorized representative to handle communication with Hacienda on your behalf. This not only reduces stress — it also ensures communication with the agency is technically and strategically correct.

Mistakes that complicate situations

Waiting to act Each day that passes after receiving the letter reduces your options. Deadlines are real and have legal consequences.

Assuming Hacienda or the IRS are automatically right Agencies make mistakes. Incorrect adjustments, deficiencies calculated with incomplete information, and notices sent to outdated addresses are situations that occur. If you believe there is an error, you have the right and mechanism to object.

Assuming you have no options because you owe real money Even if the balance is correct and real, you have options: payment plans, penalty relief requests for reasonable cause, settlement agreements in certain cases. Not responding is never the best path.

Trying to resolve complex situations without representation A deficiency involving multiple tax years, an audit on bona fide residence under Act 60, or a levy in process are situations that generally require professional representation. The cost of representation is almost always less than the cost of mishandling a complex situation.

When the situation requires immediate representation

Some situations justify seeking professional representation without delay:

• The letter mentions possible criminal charges or tax evasion
• You receive an LP504, LT11, or similar letter indicating imminent collection action
• The deficiency amount is significant and you believe there are errors
• The letter involves multiple tax years
• You have an active IRS audit related to Puerto Rico residence
• You have not filed returns for several years and now receive contact from an agency

The first step is always to evaluate

If you came to this article because you received a letter and do not know where to start, the first thing you need is to understand exactly what is happening — before taking any action.

We work with clients who receive letters from Hacienda PR and the IRS: we review the notice, identify the type of situation, evaluate available options, and define the clearest path to resolve it.

You can request an initial evaluation with no commitment to review your situation.