Summary: In this paper we propose a new lattice based second-order adaptive infinite impulse response (IIR) notch filter that uses a simplified adaptation algorithm. Steady-state analysis of the proposed structure is then studied based on the mean-squared error analysis of the steady-state variable coefficient fluctuations. The analysis is used to derive simple analytical expressions for steady-state variable coefficient variance and an upper bound for the step size adaptation constant. The results are shown to be useful in designing an FSK demodulator using the proposed structure. Computer simulation results are shown to confirm derived analytical expressions.