What to Do If You Receive an IRS Notice

Opening your mailbox to find a letter from the IRS can be unsettling. For many people, the first reaction is worry. But receiving a notice does not automatically mean something is seriously wrong, and it does not mean you are in trouble.

The most important thing you can do is stay calm and read it carefully.

What the Notice Is Actually Telling You

The IRS sends notices for a wide range of reasons. Some are routine. Some require a response. Some are simply informational. Common reasons include:

• A balance due on your account 

• A question about information on your return 

• A request to verify your identity 

• A change the IRS made to your return 

• A confirmation that your return was received

Each notice will include a notice number in the upper right corner, usually starting with a "CP" or "LT." That number tells you exactly what the IRS is communicating and what, if anything, is expected from you.

Do Not Ignore It

Even if the notice turns out to be minor, ignoring it can make the situation worse. The IRS sets deadlines for responses, and missing them can result in additional penalties or interest. Reading the notice fully and noting the response date is always the right first step.

What to Do Next

Once you have read the notice, gather any tax documents or records that relate to the issue it mentions. If the IRS is disputing a figure on your return, having your original documentation ready will be important.

If you are unsure what the notice means or how to respond, that is exactly where a qualified tax professional can help. Responding to the IRS incorrectly or incompletely can create additional complications, so having someone in your corner who understands the process makes a real difference.

At Personalized Bookkeeping and Tax Services, we have helped clients navigate IRS notices for over 35 years. We will review your notice with you, explain exactly what it means, and help you respond the right way.

You do not have to handle this alone. Give us a call and let us take it from here.

Frequently Asked Questions

Does receiving an IRS notice mean I am being audited? Not necessarily. Most IRS notices are not audit notices. Many are simply requests for additional information, notifications of a minor correction, or reminders about a balance. The notice itself will tell you what type of communication it is.

How long do I have to respond to an IRS notice? Most notices include a specific response deadline, typically 30 to 60 days from the date printed on the letter. It is important to respond by that date to avoid penalties or additional interest.

What if I disagree with what the IRS is saying? You have the right to dispute an IRS notice. If you believe the information in the notice is incorrect, you can respond with documentation to support your position. A tax professional can help you prepare a clear and accurate response.

Should I call the IRS directly? You can, but it is often helpful to speak with a tax professional first. Understanding what the notice is asking before you contact the IRS helps ensure the conversation is productive and that you are prepared to provide the right information.

What if I cannot pay the balance the IRS says I owe? There are options available, including payment plans and other arrangements. Ignoring a balance due is not recommended, but owing money does not mean you have no recourse. A tax professional can help you understand your options and work toward a resolution.