Quick overview

Receiving an IRS letter can be unnerving, but most letters are routine and resolvable. The IRS sends correspondence to correct simple errors, request missing information, notify you of a balance due, or begin collection activity. Acting promptly — by reading the notice, confirming its authenticity, gathering supporting documents, and responding within the stated timeframe — resolves the majority of cases without further action. (See IRS guidance on understanding notices and letters: https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter).

Detailed, step-by-step checklist

Below is a practical checklist I use in my practice. Follow these steps in order; skip or expand steps only after confirming they’re unnecessary for your specific notice.

  1. Pause and confirm authenticity
  1. Read every line and highlight deadlines
  • Identify the notice type (CP or LT series), the tax year in question, the amount claimed, and the required action. Notices typically include a deadline — note it and work backward to ensure you meet it.
  • Common notices: CP2000 (proposed changes to income), CP14 (balance due), LT11 (final notice before levy). Details for CP2000: https://www.irs.gov/individuals/cp2000-notice.
  1. Make a copy and create a case file
  • Scan and save the notice as PDF and keep the original. Open a file folder (paper or electronic) for all related documents, including tax returns, W-2s/1099s, bank statements, receipts, and any prior communications with the IRS.
  1. Compare with your tax return and third-party forms
  • Reconstruct the items identified in the letter. For example, a CP2000 shows income reported to the IRS by employers or payers that doesn’t match your return. Cross-check your W-2/1099s with the IRS’s figures.
  1. Decide your response path
  • If the IRS is correct and you owe money: pay the amount due, request an installment agreement, or consider other collection options (Offer in Compromise in qualifying situations). See IRS payment options: https://www.irs.gov/payments and more detail on offers in compromise: https://www.irs.gov/payments/offer-in-compromise.
  • If you disagree: respond in writing with documentation that supports your position. For correspondence audits or CP2000, include copies of W-2s/1099s, receipts, or other substantiation.
  • If you need help or want representation: complete and submit Form 2848 (Power of Attorney) to authorize a tax professional to act for you (https://www.irs.gov/forms-pubs/about-form-2848).
  1. Follow the instructions exactly
  • The IRS often tells you precisely what to return to them (copies, not originals), the mailing address, and the deadline. If a form or letter template is provided with the notice, use it. Failing to follow instructions can slow resolution.
  1. Send a clear, concise written response
  • If disputing an item: write a short cover letter that states (a) your name and tax ID, (b) the notice number and tax year, (c) the reason you disagree, and (d) a list of attached documents. Keep the tone factual; do not volunteer extra or irrelevant information.

Sample cover note (short):

Re: Notice CP2000 — Tax Year 2023

Taxpayer: John Doe, SSN xxx-xx-1234

I disagree with the proposed change regarding Form 1099-MISC income reported by Acme Co. Attached: copies of Form 1099-MISC and bank deposit records showing that the payment was returned to Acme Co. Please contact me if you need additional documentation.

  1. Use secure delivery and document everything
  • For mailed responses, use certified mail with return receipt or another trackable service, and keep copies of all materials sent. For electronic responses (when allowed), follow the IRS portal instructions.
  • Record dates you mailed or uploaded documents, and any telephone conversations with IRS staff (include name, badge number if available, and summary of the call).
  1. Monitor and follow up
  • The IRS can take several weeks to respond. If you send a response, expect to wait 4–12 weeks for processing of correspondence issues; audits and collection cases can take longer.
  • If a deadline is imminent and you need more time, call the phone number on the notice to request an extension or supervise written follow-up. Missing deadlines can trigger penalties, interest, or enforced collection actions.
  1. Escalate when necessary
  • If the issue involves a significant tax amount, potential levy, or complex technical issue, seek professional representation (CPA, enrolled agent, or tax attorney). In my practice I file timely appeals when appropriate and prepare documentation to support positions during examinations and appeals.

Specific scenarios and recommended responses

  • CP2000 (proposed changes to income): Respond within 30 days (or the time shown). If you agree, sign and return the response and pay any balance due. If you disagree, return supporting documents and a short explanation. (IRS CP2000: https://www.irs.gov/individuals/cp2000-notice)

  • CP14 (balance due): Pay immediately or set up a payment plan. If you can’t pay now, apply for an installment agreement or temporary delay (Currently Not Collectible). See payment plans and options: https://www.irs.gov/payments and our comparison of collection plans: Common IRS collections payment plans compared.

  • LT11 (notice of intent to levy): This is serious — respond immediately. Contact the IRS to arrange payment or appeal the levy. Consider professional help; I’ve seen levies stopped with quick responses and proof of repayment plans.

  • Identity theft or suspicious notices: If you suspect fraud, contact the IRS Identity Protection Specialized Unit and follow instructions at https://www.irs.gov/identity-theft-fraud-scams. Keep evidence and consider an Identity Protection PIN if eligible.

Documentation checklist (what to include when you respond)

  • A copy of the IRS notice
  • A clear cover letter identifying the notice, tax year, and your requested action
  • Copies (never originals) of W-2s, 1099s, receipts, canceled checks, bank statements, invoices, and contracts
  • Proof of earlier payments (if relevant)
  • If authorizing a representative, a signed Form 2848 (Power of Attorney) or Form 8821 (Tax Information Authorization)

For guidance on assembling correspondence-audit packets, see our article on preparing a document packet for an IRS correspondence audit.

Payment options if you owe

  • Pay in full online through IRS Direct Pay or EFTPS
  • Request an installment agreement (short-term or long-term) — many taxpayers qualify
  • Consider an Offer in Compromise only if you meet the financial criteria; it requires detailed financial disclosure and is not often approved, but it can settle tax debt for less in qualifying cases. More on offers: https://www.irs.gov/payments/offer-in-compromise and our guide to offers in compromise.

Common mistakes to avoid

  • Ignoring the notice or assuming it’s a scam without verification
  • Sending incomplete documentation or originals instead of copies
  • Calling general IRS phone lines without your notice in hand (always have the notice number ready)
  • Using unvetted tax relief companies that promise guarantee results — check credentials

When to hire a tax professional

  • The notice involves more than a few thousand dollars, a potential levy, lien, or serious audit issue
  • You’re unfamiliar with tax law that affects the notice
  • You want representation for an audit, collection negotiation, or appeal

In my 15 years of practice I often intervene when clients face complex audits or collection actions; timely professional involvement commonly reduces penalties and stops collection escalation.

Closing notes and legal disclaimer

This checklist is educational and based on common IRS procedures and professional experience. It is not legal advice. For guidance tailored to your circumstances, contact a qualified tax professional, enrolled agent, CPA, or tax attorney. Official IRS resources cited include the IRS notice guidance (https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter), CP2000 page (https://www.irs.gov/individuals/cp2000-notice), Form 2848 details (https://www.irs.gov/forms-pubs/about-form-2848), and payment/offer resources (https://www.irs.gov/payments, https://www.irs.gov/payments/offer-in-compromise).

If you want practical templates or a checklist packet you can print and send with a response, I can provide a downloadable sample cover letter and folder checklist for common notice types.