Few pieces of mail cause more anxiety than an envelope from the IRS. But most notices are routine, and panicking (or ignoring it) is the worst response. Here’s how to handle it.
First: don’t ignore it
Notices have deadlines. Ignoring one doesn’t make it go away, it limits your options and can turn a small issue into a bigger one. Open it, read it carefully, and note any response date.
Understand what it says
Every IRS notice has a code (like CP2000 or CP14) in the top or bottom corner that tells you exactly what it’s about:
- CP14, you have a balance due.
- CP2000, the income reported on your return doesn’t match what third parties reported. This is not a bill or an audit, it’s a proposed change you can agree with or dispute.
- Audit letters, request documentation to verify items on your return.
Verify before you pay
Notices aren’t always correct. Compare the notice against your records before agreeing to any change or paying any amount. Sometimes the right response is a polite, documented disagreement.
Beware of scams
The IRS initiates contact by mail, not by phone call, text, or email demanding immediate payment. If someone calls demanding gift cards or wire transfers, it’s a scam.
When to get help
If the amount is significant, the notice concerns an examination, or you are unsure how to respond, seek professional help early. Representation requires appropriate authorization, and the response depends on the notice and supporting records. Keep the stated response deadline in view while arranging help.
Received a notice and not sure what it means? Send it our way. Our IRS support service handles it for you. Book a consultation.
Prepare a complete notice-review packet
Include every page of the notice, the return it refers to, payment confirmations, and earlier correspondence. Write down what you believe is incorrect and identify the record that supports your view. Keep the response date visible while you seek help. A professional must first understand the issue and establish the appropriate authorization; there is no dependable promise that one reply will resolve every notice.
General educational information, not an individual tax opinion. The applicable year, jurisdiction, and facts must be reviewed before acting.