Responding to IRS Correspondence: Best Practices and Timelines

How should I respond to IRS correspondence and meet required timelines?

Receiving a letter or notice from the IRS is stressful, but acting fast and methodically lowers the chance of penalties, liens, or levies. This guide breaks down what to do first, how much time you typically have, which documents to gather, and when to get professional help. The steps below reflect current IRS practice and my 15+ years working as a CPA and tax advisor guiding clients through these exact situations.

Quick-action checklist (first 24–48 hours)

• Read the notice or letter in full. Note the notice number (top right), the tax year referenced, and the deadline. The IRS labels notices (for example: CP2000, CP14, Notice of Deficiency).
• Confirm the notice is really from the IRS. Look for official letterhead, notice numbers, and the secure mailing address. If you’re unsure, call the IRS phone number shown on the notice (not a number from an email or an unknown website). See IRS guidance on understanding notices (IRS — Understanding Your IRS Notice or Letter).
• Don’t ignore it. Most notices give a limited response window (commonly 30 days). Delaying can increase penalties or trigger collection steps.
• Gather supporting documents and create a response plan.

(In my practice I’ve seen quick, documented responses resolve the majority of correspondence audits and CP2000 proposals within a single exchange.)

Typical timelines and common notice types

Times vary by notice. Always follow the date printed on your specific correspondence. The most common timelines:

• CP2000 (proposed changes for unreported income): Generally 30 days to respond. You can agree, supply documentation, or dispute the proposed change.
• Balance-due notices (e.g., CP14): Usually 30 days to pay or contact the IRS to arrange an alternative (installment agreement or offer in compromise discussions may take longer).
• Notice of Federal Tax Lien / Notice of Intent to Levy: You typically have 30 days after the notice to request a Collection Due Process (CDP) hearing or to appeal.
• Notice of Deficiency (Statutory Notice / 90-day letter): You usually have 90 days to file a petition in U.S. Tax Court (150 days if the notice was mailed to a person outside the U.S.).
• Audit correspondence (letters requesting documentation for an audit): Often 30 days, depending on the letter. Some auditors will give a short extension if requested.

Authoritative IRS guidance confirms these typical windows; always read the deadline printed on your notice and consult IRS pages on appeals and collection due process (IRS — Appeals; IRS — Collection Due Process) for specifics.

Step-by-step: How to prepare your response

1. Identify the notice type and deadline. Put the deadline on a calendar and set reminders.
2. Verify accuracy. Check your tax return and source documents (W-2s, 1099s, bank records, K-1s, receipts). Often the IRS has received information from third parties and is asking you to reconcile differences.
3. Draft a clear cover letter. Include:

• Your full name, taxpayer identification number (SSN or EIN), and the tax year concerned.
• The notice number and date.
• A short, factual explanation of your response (agree, partially agree, or dispute) and a list of enclosed documents.

1. Enclose copies, not originals, unless the notice specifically requests an original. Keep certified copies of anything mailed.
2. Use the contact method specified on the notice. If a fax number, use that; if a mailing address, send by certified mail with return receipt or use the IRS fax/address listed for that specific notice type.
3. Retain proof of submission (delivery receipt, fax confirmation, email confirmation). Store a complete copy of your response and all enclosures.

Evidence and documentation: what helps

• Identity and income proofs: W-2s, 1099s, bank statements, transcripts.
• Deductions and credits: receipts, cancelled checks, invoices, mileage logs, partnership K-1s.
• If you’re missing a document, provide a written explanation and any alternative proof (bank statement lines showing deposits, employer contact information, or proof of corrections filed with the payer).

Tip from practice: Organize documents in the order you reference them in your cover letter. That saves the IRS reviewer time and speeds resolution.

How to request more time

If you need more time to assemble documents, call the phone number on the notice immediately and ask for an extension. Many IRS units will grant a short extension if you request it early and have a legitimate reason. If the notice lists a specific fax or mail address for a response, follow that routing even when asking for more time.

If you disagree: appeals and dispute options

• For a proposed assessment, you can submit a written dispute with evidence. If not resolved, you can use IRS appeals or file with the U.S. Tax Court when allowed (see IRS Notice of Deficiency procedures). Appeals deadlines are often strict — watch the date on your notice.
• For collection actions, you can request a Collection Due Process hearing (generally within 30 days of the notice). The CDP process provides an independent appeals officer review.

See IRS Appeals information and the Taxpayer Bill of Rights for your formal protections (IRS — Appeals; IRS — Taxpayer Bill of Rights).

What to do if you missed the deadline

• Act immediately. Contact the phone number on the notice and explain the delay. Request penalty relief or an opportunity to resolve the issue. The IRS has a First Time Penalty Abatement policy in limited cases and also allows penalty relief for reasonable cause when supported by documentation.
• If the IRS has already assessed a tax or filed a lien, you still have remedy routes (appeals, collection alternatives, installment agreements). Do not assume it’s too late — many situations can be remedied with prompt action and proper documentation.

When to hire a tax professional

• If the notice concerns complex issues (unreported income, large proposed assessments, potential fraud, business payroll issues), hire a CPA, enrolled agent, or tax attorney.
• If you prefer a professional to negotiate, sign and file a Form 2848 (Power of Attorney) so your representative can communicate with the IRS on your behalf.

In my practice I recommend professional help when the proposed change exceeds $5,000, when a tax court petition is required, or when collection actions like liens or levies are imminent.

How to send your response (practical tips)

• Follow the mailing or fax instructions on the notice. Many IRS notices list a secure fax or PO Box for responses.
• When mailing, use certified mail, return receipt requested, and keep a copy of everything sent.
• If you send documents electronically (some IRS units accept e-filed or portal uploads), follow the IRS’s instructions exactly and keep confirmation receipts.

Common mistakes to avoid

• Ignoring the notice or assuming it’s a scam. (If you suspect a scam, verify via the IRS website or the phone number on the notice.)
• Sending documents without a cover sheet identifying the notice number and tax year.
• Mailing originals when copies suffice — originals can be lost.
• Missing timelines for appeals or CDP hearings.

Real-life examples (anonymized)

• Client A received a CP2000 for unreported 1099 income. After verifying a duplicate 1099 by the payer and sending a short cover letter with corrected forms and bank evidence, we closed the matter within six weeks with no penalty.
• Client B ignored a balance-due notice and later received a Notice of Intent to Levy. Once I intervened, we requested a Collection Due Process hearing and negotiated an installment agreement, avoiding levy after demonstrating reasonable cause.

Additional resources and related FinHelp guides

• Preparing for a Tax Audit: Documents, Timeline, and Tips — practical checklist to organize records before an audit (https://finhelp.io/glossary/preparing-for-an-irs-audit-documents-timeline-and-tips/).
• Preparing a Document Packet for an IRS Correspondence Audit — how to assemble a clear, persuasive packet (https://finhelp.io/glossary/preparing-a-document-packet-for-an-irs-correspondence-audit/).
• What Triggers an IRS Correspondence Audit and How to Prepare — common triggers and mitigation steps (https://finhelp.io/glossary/what-triggers-an-irs-correspondence-audit-and-how-to-prepare/).

Final professional checklist

• Read and note the notice number and deadline.
• Confirm the notice is authentic.
• Gather supporting documents and prepare a one-page cover letter.
• Send copies (not originals) via the method specified; keep delivery proof.
• If needed, call immediately to request an extension or clarify instructions.
• Hire a tax professional for complex or high-dollar matters and file Form 2848 to authorize representation.

Professional disclaimer: This article is educational and general in nature and does not constitute personalized tax advice. Tax rules change and outcomes depend on facts specific to your situation. Consult a qualified tax professional for advice about your particular case. For official IRS guidance see the IRS website (https://www.irs.gov) and the Taxpayer Bill of Rights (https://www.irs.gov/taxpayer-bill-of-rights).