What you should and should not do when you get mail from the IRS.
Opening the mailbox to find an official letter from the Internal Revenue Service is an experience that reliably triggers anxiety. Whether it is a routine notice of a minor processing adjustment, a notification of an unpaid balance, or a formal audit request, receiving IRS correspondence feels intimidating.
Because the IRS possesses broad enforcement powers—including the ability to assess penalties, issue tax liens, and levy bank accounts; it is natural to feel overwhelmed. However, an IRS notice is not an automatic declaration of guilt, nor is it an emergency that requires panic. It is simply an official administrative communication that requires a calm, deliberate, and informed response.
Knowing how to handle official tax correspondence can save you time, money, and unnecessary stress. Below is a comprehensive guide detailing what you should—and should not—do when an IRS notice arrives in your mail.
WHAT YOU SHOULD DO
1. Read the Notice Carefully from Top to Bottom
IRS letters are standardized and structured to explain precisely why they were generated. The upper right-hand corner of the document contains essential identifying information, including the notice number (such as CP2000, CP14, or LT11), the tax year in question, your Social Security Number or Employer Identification Number, and the specific contact phone number for the department handling your file.
Read the text thoroughly to understand what the IRS is claiming. Is the agency correcting a simple math error? Are they reporting a mismatch between your tax return and a 1099 form sent by a payer? Are they requesting additional documentation to verify a deduction? Or are they notifying you of an unpaid balance? Identifying the exact nature of the letter is the first step toward resolving it.
2. Check the Deadlines and Act Promptly
Every IRS notice includes strict statutory response deadlines. Missing these deadlines can lead to severe consequences, such as forfeiting your right to appeal a tax assessment in U.S. Tax Court, losing eligibility for penalty relief, or triggering automatic collection actions.
Pay close attention to dates printed on the notice. If the letter requests a response within thirty or sixty days, mark that deadline on your personal calendar immediately. Even if you cannot gather all requested records or pay a balance in full right away, responding before the deadline preserves your legal rights and keeps open administrative remedies.
3. Compare the IRS Figures with Your Own Tax Records
Do not assume the IRS is automatically correct. Automated IRS matching systems frequently generate notices based on incomplete information—such as a missing cost basis on a stock sale or an unreported Form 1099 that was issued in error.
Pull out your copy of the tax return for the tax year cited in the letter, along with all supporting W-2s, 1099s, receipts, and bank statements. Compare the numbers reported by the IRS line-by-line against your original filing. In many cases, what appears to be a massive tax liability is simply a misunderstanding that can be resolved by providing missing documentation.
4. Respond in Writing and Keep Meticulous Records
If the notice requires a response, submit your explanation and supporting documents in writing. Clearly reference the notice number, tax year, and your taxpayer identification number on every page you submit.
Always send your written response via Certified Mail with Return Receipt Requested, or use an approved commercial delivery service with tracking. This provides legal, indisputable proof of the date you mailed your response. Keep a complete duplicate copy of everything you send, along with the certified mail receipt, in a dedicated tax file.
5. Explore Settlement and Payment Options If You Owe
If you review the notice, agree with the IRS’s adjustments, and find that you owe additional tax, do not let fear paralyze you. The IRS offers several structured payment options for taxpayers who cannot pay in full immediately.
You can apply online for a Short-Term Payment Plan (up to 180 days) or a formal Installment Agreement (Form 9465) to pay off the balance over several years via monthly direct debit. If you are experiencing severe financial hardship, you may qualify for Currently Not Collectible status or an Offer in Compromise. Engaging with the IRS to set up a formal payment plan halts aggressive collection efforts like bank levies or wage garnishments.
6. Seek Qualified Professional Help When Needed
While straightforward notices (such as confirming a minor address change or correcting a simple math error) can often be handled independently, complex notices warrant professional legal or tax representation.
If you receive an audit notice, a Notice of Deficiency, or a Final Notice of Intent to Levy (such as Notice LT11), consult a Licensed CPA, Enrolled Agent, or Tax Attorney. A qualified tax professional can communicate with the IRS on your behalf under a Power of Attorney (Form 2848), protect your statutory rights, and structure optimal resolution strategies.
WHAT YOU SHOULD NOT DO
1. Do Not Ignore the Notice
The single most damaging mistake a taxpayer can make is throwing an IRS notice in a drawer and pretending it does not exist. Ignoring the IRS does not make the problem go away; it accelerates enforcement.
If you do not respond to initial letters, the IRS will eventually issue a statutory Notice of Deficiency, formalizing the tax assessment. Continued silence will lead to automated collection actions, including the filing of a Federal Tax Lien against your property, the levying of your bank accounts, and the garnishment of your wages. The IRS has statutory authority to collect unpaid taxes, and ignoring them guarantees the worst possible outcome.
2. Do Not Panic or Fall for Phone and Email Scams
An official IRS notice can be alarming, but it is an administrative process governed by clear legal rules. Take a deep breath and avoid emotional reactions.
Furthermore, be vigilant against tax fraud. The IRS initiates nearly all official contact regarding tax adjustments through physical mail delivered by the U.S. Postal Service. The IRS will never call you out of the blue demanding immediate payment via pre-paid gift cards, wire transfers, or cryptocurrency, nor will they threaten to send local police to arrest you immediately. If you receive an unexpected phone call or email demanding money, hang up—it is a scam.
3. Do Not Sign an Agreement or Pay Money You Do Not Owe
If you disagree with the IRS’s proposed adjustments, do not sign the consent or agreement section attached to the notice, and do not pay the proposed tax out of fear. Signing a consent form waives your right to challenge the assessment in court or request an administrative appeals conference.
If the IRS is wrong, you have the legal right to dispute their findings. Prepare a clear, polite statement explaining why the adjustment is incorrect, attach the supporting documentation proving your position, and mail it within the designated response window.
4. Do Not Alter or Fabricate Supporting Records
When gathering documents to dispute an IRS notice or satisfy an audit request, present only authentic, original receipts, bank statements, and business records. Never alter dates, inflate dollar amounts, or fabricate documents to support a deduction.
Submitting altered or fraudulent documents to the Federal Government elevates a routine civil tax dispute into a criminal investigation under penalties of perjury. If you lack complete receipts for a legitimate expense, work with a tax professional to establish reconstructed records using secondary evidence (such as calendar entries, vendor correspondence, or bank statements) under legal standards like the Cohan Rule.
5. Do Not Assume the IRS Will Automatically Update Related Tax Years
If the IRS identifies an error on one tax return—such as misclassifying an expense or omitting a recurring income source—they may apply that same adjustment to prior or subsequent tax years.
Do not view the notice in isolation. If you discover a mistake on the tax year cited in the letter, review your filed returns for open tax years to see if the same issue exists. Proactively filing an amended return (Form 1040-X) for related years can minimize interest accrual and demonstrate good-faith compliance to the agency.
Taking Control of the Situation
Receiving an IRS notice is stressful, but it is fundamentally a manageable administrative challenge. By opening the letter immediately, carefully comparing the IRS’s claims against your financial records, adhering strictly to response deadlines, and seeking professional guidance when necessary, you can resolve the issue effectively while keeping your rights fully protected.
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