A letter from the IRS spikes most people’s heart rate — but the majority of notices are routine, and many resolve with a simple response. The worst strategy is ignoring it. Here’s how to handle that envelope the right way.
Step 1: Actually Open and Read It
Each notice has a code in the upper right corner — something like CP2000, CP14, or LT11. That code tells you what the letter is about. A CP14 is a balance-due statement. A CP2000 proposes changes based on income the IRS thinks you underreported. Others verify identity, adjust your refund, or request a missing return.
Read the whole letter, including the response deadline. Most notices give you 30 days, and deadlines matter — missing them can forfeit appeal rights or let proposed changes become final assessments.
Step 2: Confirm It’s Really the IRS
The IRS initiates contact by mail — not by phone, email, text, or social media demanding immediate payment via gift card or wire transfer. Those are scams, full stop. If a letter looks suspicious, you can verify it by calling the IRS directly using the number on IRS.gov (not the one printed in a questionable letter), or by checking your online account at IRS.gov.
Step 3: Compare It Against Your Records
Pull the tax return in question and check whether the notice is correct. Notices are frequently wrong or incomplete:
- Agree? Follow the instructions — pay, sign the agreement, or provide what was requested. Keep proof of everything.
- Disagree? Respond in writing by the deadline, explaining why, with copies (never originals) of supporting documents. A clear, documented response resolves many disputes without escalation.
- Partially right? Respond anyway — concede what’s accurate and contest what isn’t.
Step 4: Respond — Even If You Can’t Pay
If the notice says you owe and you can’t pay in full, respond anyway. Payment plans exist for most balances, and options like Currently Not Collectible status or an Offer in Compromise may apply in hardship situations. Silence, by contrast, moves your account toward enforced collection: liens, levies, and garnishments.
Keep a Paper Trail
Send responses by a method with delivery confirmation, and keep copies of the notice, your response, and any proof of mailing. If you call, note the date, time, and the representative’s ID number.
When to Get Help
Consider professional representation when the amount is significant, the notice involves an audit or a levy, multiple years are involved, or you simply don’t understand what’s being asked. An Enrolled Agent can speak to the IRS on your behalf — often resolving in one call what takes taxpayers months of letters.
This article is provided for general informational purposes only and does not constitute tax, legal, or accounting advice. Every notice and situation differs — consult a qualified tax professional before responding to the IRS.