Received an IRS Notice? What to Do Before You Respond

Receiving a letter from the IRS can be unsettling, particularly when the notice involves additional taxes, an audit, a proposed adjustment, or collection activity. But receiving an IRS notice does not necessarily mean that something has gone seriously wrong.

The important thing is to understand why the IRS contacted you, what the notice requires, and whether there is a deadline to respond.

The IRS sends notices for many reasons, including questions about a tax return, changes to a return or refund, balances due, requests for additional information, and identity verification. Each notice addresses a particular issue and generally provides instructions for responding.

1. Read the Entire Notice Before Taking Action

Start by determining exactly what the IRS is addressing.

Look for the notice or letter number, usually identified by a CP or LTR number, as well as the tax year involved, the amount at issue, and any response deadline. Keep a copy or photograph of the complete notice, including all enclosed pages.

Do not assume that receiving a notice means the IRS is correct—or incorrect.

Compare the notice with your tax return and your own records before deciding how to proceed.

2. Pay Attention to the Deadline

Some IRS correspondence is informational, while other notices require action within a specified period.

Those deadlines can matter. Depending on the type of notice and stage of the proceeding, failing to respond timely can affect the options available to dispute an assessment or exercise appeal rights. For example, a statutory notice of deficiency generally provides 90 days to petition the Tax Court, while a Collection Due Process levy notice generally provides 30 days to request a hearing.

This is one reason it is generally better to address an IRS notice promptly rather than setting it aside for later.

3. Gather the Relevant Records

Before responding, collect the documents related to the issue raised in the notice.

Depending on the circumstances, those might include:

• The tax return for the year involved

• W-2s, 1099s, or other tax documents

• Prior correspondence with the IRS

• Payment records

• Business or accounting records

• Documents supporting deductions, income, or other items questioned by the IRS

Having the complete picture can make it much easier to determine whether the IRS's position is correct and what response may be appropriate.

4. Don’t Assume You Need to Call the IRS Immediately

Not every notice requires a phone call—or even a response.

Read the instructions in the notice carefully before taking action. If you do need to contact the IRS, first verify the notice by searching its CP or LTR number on IRS.gov. If the notice is genuine, use the contact information it provides rather than information from an unsolicited email, text message, or phone call.

If the matter is complicated, involves a significant amount of money, or could develop into an audit or collection matter, it may also be worthwhile to understand your position before communicating with the IRS.

5. Know When to Seek Professional Advice

Many routine IRS notices can be handled without legal representation. Others can have consequences that extend well beyond the letter itself.

Consider speaking with a tax professional or tax attorney when a notice involves an audit, substantial proposed assessment, tax lien or levy, collection action, disputed tax liability, business tax issue, or a deadline affecting your appeal rights.

A tax attorney can review the notice and underlying issue, explain the available options, and, when appropriate, communicate with the IRS on your behalf.

The Most Important Thing: Don’t Ignore It

An IRS notice is not necessarily a reason to panic, but it is something to take seriously.

Read it carefully, identify the issue and deadline, preserve your records, and determine what—if anything—the IRS is asking you to do. Taking the time to understand the notice before responding can help prevent a relatively manageable tax issue from becoming a more complicated one.

Need Help With an IRS Matter?

Weiler & Rees represents individuals and businesses in IRS audits, collections, tax controversies, and related federal and Louisiana tax matters. If you have received an IRS notice and are unsure what it means or how to respond, contact the firm to discuss your situation.

This article is provided for general informational purposes only and does not constitute legal or tax advice.

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