How do I respond to an IRS notice or letter?
Most IRS notices are routine correspondence, not the start of a major problem. The agency sends millions of letters every year for things like unpaid balances, math errors, missing information, or verification requests. The key is reading it carefully and responding by the deadline.
Start by identifying the notice type. Every IRS letter has a notice number in the upper right corner such as CP14, CP2000, or LTR 525. This tells you what category of issue you’re dealing with. A CP14 is a balance due notice. A CP2000 means income reported to the IRS doesn’t match your return. Each type requires a different response.
Read the entire letter before doing anything else. The notice will explain what the IRS believes happened, what they’re asking you to do, and the deadline for your response. Don’t call the IRS until you understand what the letter says. Hold times are long and you’ll be more effective if you know what you’re discussing.
Check the deadline and mark it on your calendar. IRS deadlines are firm. Missing them can mean losing your right to appeal, automatic approval of proposed changes, or escalating collection activity. Most notices give you 30 to 60 days to respond.
Gather documentation that supports your position. If the IRS says you didn’t report income, find records showing you did. If they’re questioning a deduction, pull the receipts and records that prove the expense. If they say you owe money and you already paid, get the cancelled check or payment confirmation.
Respond in writing even if you call the IRS to discuss it. Your written response becomes part of the official record. Use the address on the notice, not a general IRS address. Send it certified mail with return receipt if you’re close to the deadline. Keep copies of everything you send.
Some notices you can handle yourself. A simple balance due that you agree with just needs payment. A request for a document you have is straightforward. But not every notice is simple.
If the notice involves an audit, significant tax owed, penalties, or something you don’t fully understand, consider getting help. Enrolled Agents are federally licensed to represent taxpayers before the IRS. They can communicate with the agency on your behalf, negotiate payment plans or penalty abatement, and handle audit representation. You don’t have to face the IRS alone.
Common mistakes include ignoring the notice (it won’t go away), calling the number on a fake letter without verifying it’s real first, missing the deadline, and agreeing to changes you don’t understand. Take time to read and respond thoughtfully.
If you’re in the Treasure Valley and received an IRS notice, our Nampa business tax preparation service can review the letter, explain what it means, and help you respond correctly. Handling IRS correspondence promptly and properly usually resolves the issue before it becomes a bigger problem.
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