What to do when the IRS sends a notice

Written by

Certified Public Accountant, Texas; former IRS professional

Start with the notice, not the balance

Opening an IRS notice can be unnerving, but a notice does not automatically mean the IRS is correct or that immediate payment is the only option. Read every page, identify the tax year and form involved, find the notice or letter number in the upper-right corner, and write down the response deadline. The IRS explains that most notices concern a specific issue with a federal tax return or account and usually include instructions for the next step.

Confirm that the notice is genuine before sharing information or sending money. An authentic letter should identify the taxpayer, tax year, notice number, and a reason for the contact. Use the telephone number printed on the notice or an independently verified IRS number. The IRS generally begins contact through the mail; unexpected demands by text, email, or social media deserve extra scrutiny.

Match the notice to your return and records

Compare the proposed change with the return you filed, any later amended return, and the documents that support the item in question. For an income-matching notice, that may include Forms W-2 or 1099, brokerage statements, and proof that a reported item belongs to a different year or taxpayer. For a payment notice, gather canceled checks, electronic-payment confirmations, and account transcripts. Keep the original notice and send copies—not original records—unless the instructions specifically require otherwise.

If you agree with the notice, follow its payment or response instructions and retain proof of what you submitted. If you disagree, prepare a focused response that states the disputed item, explains why the proposed change is incorrect, and attaches the records that support that position. Mail or upload the response using the method in the notice, keep a complete copy, and use trackable delivery when mailing.

Know when the stakes require professional help

Some notices are routine requests for clarification. Others can affect appeal rights, collection action, penalties, or the time available to challenge an assessment. Seek prompt professional advice when the notice involves an examination, levy or lien warning, unfiled returns, identity theft, payroll taxes, a large unexplained balance, or a deadline you may not be able to meet.

Do not call simply to “see what happens” if you are unsure of the facts. Before contacting the IRS, organize a timeline, the relevant returns, payment history, prior correspondence, and a short list of questions. A CPA, enrolled agent, or attorney authorized to practice before the IRS can help determine whether the issue calls for correction, documentation, an appeal, a payment arrangement, or another procedural response.

Primary sources

• IRS: Understanding your IRS notice or letter
• IRS: Tax scams and consumer alerts
• Taxpayer Advocate Service: Get help with a notice or letter

This article provides general educational information, not individualized tax, legal, or investment advice.