Top 5 IRS Notices J-1 Visa Holders Receive (And What to Do)

As a J-1 visa holder navigating U.S. tax obligations, you might assume that once you file your taxes (using Form 1040NR, Form 8843, or even Form 1040 if you qualify) everything is done. But the IRS doesn’t always agree. Even after correct filing, many J-1 holders receive IRS notices that raise alarms: “Did they catch an error?”, “What do I respond?”, “Will this affect my visa?”

These notices are not automatic doom. In fact, many are standard procedures, but because J-1 visa holders have slightly more vulnerable tax status (nonresident, treaty rules, FICA exemptions, etc.), these notices require careful responses. Mistakes or ignoring them can lead to penalties, delays of refunds, or risk to future filings.

In this article, we cover the top 5 IRS notices J-1 holders commonly receive — CP2000, 4464C, 4883C, 5071C, and LT41 — what each means, when to worry, how to respond, and how your tax setup (W-2 salary, transcripts, DS-2019, 1042-S, etc.) influences your defense.

The Tax Moves Blog

Oct 7, 2025 | J1 VISA, Learning IRS

Top 5 IRS Notices J-1 Visa Holders Receive (And What to Do)

Before that, if you haven’t already, review our full J-1 Visa Tax Return Guide and run an estimate using our J1 tax calculator. Those tools help you understand your baseline so the notices don’t catch you off guard.

CP2000: Proposed Adjustment Notice

What it is:
CP2000 is the IRS’s proposed adjustment letter. It means the IRS found a discrepancy between what you reported and what third parties (like employers, banks) reported to them. It suggests changes in wages, interest, dividends, etc.

Why J-1 holders receive it:

W-2 or 1042-S reported by employer/bank doesn’t match your return.
Foreign source income or scholarship amounts (1042-S) not properly included or excluded.
Overlooked 1099 income or interest.

What to do:

Compare your IRS transcript (Wage & Income transcript) with your W-2, 1042-S, and 1099. (See IRS transcript guide).
If the discrepancy is valid (employer underreported), request a corrected W-2 (W-2c).
Respond by mail by the deadline (usually 30 days) stating whether you agree or disagree. If disagreeing, provide documentation (pay stubs, employer letters).
If you agree, accept the adjustments, pay any additional tax, and file an amended return if needed.

When to worry:
If you don’t respond, IRS will impose the adjustment, possibly adding penalties and interest, and you lose your chance to dispute.

Notice 4464C

What it is:
Notice 4464C indicates that your tax return is under review or additional examination. It is a generic audit or verification notice asking for more time.

Why J-1 holders receive it:

Complexity in your return: treaty benefits, scholarship income, FICA exemption, multiple forms (W-2, 1042-S).
Unusual deductions or unusually low tax.
Discrepancies flagged by IRS automated systems.

What to do:

Do not ignore it.
Review your return and supporting documents (W-2, 1042-S, DS-2019, transcripts).
Prepare documentation (copies of transcripts, employer correspondence, pay stubs).
Respond by the deadline indicating readiness to cooperate.

When to worry:
Only escalate if they request documentation you cannot provide. But as long as you respond correctly, many audits close without penalty.

Notice 4883C

What it is:
A notice 4883C is often a follow-up or more specific request after 4464C, indicating the IRS wants specific documentation or clarification on parts of your return.

Why J-1 holders receive it:

IRS wants proof of treaty eligibility, supplemental income, or verification of scholarship vs taxable income.
Discrepancies in SSN/ITIN, name mismatch, employer name mismatch.

What to do:

Provide exactly what they request — don’t overdeliver.
Only include documentation that supports your position (transcripts, pay stubs, DS-2019).
Explain clearly in writing which part of your return is under question and your justification.

Notice 5071C: Identity Verification

What it is:
5071C is a fraud prevention / identity verification notice: the IRS wants to confirm you are who you say you are before processing.

Why J-1 holders receive it:

Suspicious filing pattern (first year, foreign address).
SSN/ITIN flagged, mismatches.
Unusual IP/location, timing of filing.

What to do:

Follow instructions (call a number or verify online).
Use secure IRS Identity Verification system (ID.me, etc.).
Provide required documents (passport, prior return, etc.).
Respond promptly so IRS doesn’t suspend processing.

When to worry:
If ignored, the IRS may hold your return, delay refund, or ask for more identity proof. But it is standard; most people resolve it.

LT41: Balance Due Notice

What it is:
LT41 is a notice that you owe money (balance due) because, in IRS’s view, you underpaid taxes. It may include penalties and interest.

Why J-1 holders receive it:

Underreporting income or withholding mismatch.
Treaty benefits denied or misapplied.
Errors in accounting, forgetting to include taxable portion of scholarships or 1042-S

What to do:

Check your transcript and original return.
If you agree with their amount, pay promptly (or arrange installment).
If you disagree, respond with documentation and possibly file an amended return.

Additional Tips & Precautions for J-1 Visa Holders

Use transcripts as your shield

Before responding to any notice, check the IRS transcript. That gives you an objective baseline. If your documents match their transcripts, it’s harder for the IRS to challenge.