Got an IRS Notice? What to Do Now

What you should do if you receive a notice
from the IRS in the mail

First, do not panic. The IRS uses letters to communicate with taxpayers about IRS audits and other tax-related issues.

These notices affect most taxpayers in the same way. They cause you to feel fear, anxiety, and often embarrassment. As a result, many taxpayers enter into a hasty settlement.

It is important to add here that the IRS will never make initial contact via phone or email.

Your notice or letter will explain the reason for the contact and give you instructions on how to handle the issue.

Here’s what you should know:

Why Was I Notified By the IRS?

The IRS sends notices and letters for the following reasons:

You have a balance due.
You are due a larger or smaller refund.
They have a question about your tax return.
They need to verify your identity.
They need additional information.
They changed your return.
They need to notify you of delays in processing your return.

Next Steps

Read

Each notice or letter contains a lot of valuable information, so you must read it carefully. If the IRS changed your tax return, compare the information they provided in the notice or letter with the information in your original return.

Respond

If your notice or letter requires a response by a specific date, there are two main reasons you’ll want to comply:

to minimize additional interest and penalty charges.
to preserve your appeal rights if you don’t agree.

Pay

If you agree you owe money to the IRS, pay as much as you can even if you can’t pay the full amount you owe. You can pay online or apply for an Online Payment Agreement or Offer in Compromise. The payments page on IRS.gov provides more information.

Keep a Copy of Your Notice or Letter

It’s important to keep a copy of all notices or letters with your tax records. You may need these documents at a later date. When corresponding with the IRS, you will need to include the notice (CP) or letter (LTR) number located on either the top or the bottom right-hand corner of your notice.

A Final Note

Remember, you are not in this alone. You are always entitled to representation. Every problem is different and unique.

If you feel you need assistance with an IRS notice, your local tax professional can analyze your particular tax situation and advise you on the best options.

Stay safe. Stay well. Stay home.