Quick summary

Receiving an IRS notice is not the same as being audited — most notices are routine, explain a change, or request information. The key is speed: verify the notice, record dates and notice numbers, follow the instructions exactly, gather supporting documents, and respond before the deadline. Timely, documented responses often stop collection activity and limit penalties and interest (IRS, “Understanding Your IRS Notice or Letter”).

Why acting quickly matters

  • Many IRS notices include short, binding deadlines (commonly 30 days) for responses or appeals. Missing these can mean loss of appeal rights, new penalties, or enforced collection actions. Certain notices, like a Notice of Deficiency, give you 90 days to file a petition with the U.S. Tax Court if you want to dispute before assessment (IRS, Notice of Deficiency).
  • In my practice, clients who respond within the stated window typically avoid aggressive collection steps and resolve discrepancies with fewer fees and less stress.

Step-by-step: How to identify the notice

  1. Don’t panic — read the whole letter. Each IRS notice begins with an identification code (e.g., “CP2000,” “CP14,” or “Letter 226-J”) and a short summary near the top. That code tells you what the IRS is addressing.
  2. Note the key fields immediately: notice number, tax year, date mailed, and any stated deadline.
  3. Check the opening paragraph for the IRS’ stated finding: an adjustment to income, a balance due, a request for documents, or a penalty assessment.
  4. Verify legitimacy. The IRS generally contacts taxpayers by U.S. mail first. The IRS will not call, email, or text to demand immediate payment using language that threatens arrest (see IRS Consumer Alerts on scams). If in doubt, compare the notice number and wording with the IRS page “Understanding Your IRS Notice or Letter” (irs.gov) or call the IRS directly at 800-829-1040 for individual tax help.

Verify the notice and avoid scams

  • Real IRS notices come by mail and include a notice number. Scammers may spoof IRS letterhead or send messages that demand instant payment or request sensitive information online.
  • If you receive a suspicious call or email, do not give personal data. Instead, go to the IRS scam page (irs.gov/newsroom/tax-scams-consumer-alerts) and the IRS notice pages to compare wording. You can also log in to or create an IRS online account to check your account activity.

Immediate actions to take (checklist)

  • Save the original letter (don’t throw it away). Make a scanned copy for your records.
  • Record the date you received the notice and the response deadline.
  • Read the instructions exactly — some notices contain a payment stub, others require a written response or specific form.
  • If the notice indicates an amount due and you can pay, pay or set up an agreement to stop penalties and levy risk. If you cannot pay, review payment options at the IRS payments page (irs.gov/payments).
  • If the notice requests documentation (for example, copies of W-2s, 1099s, receipts), assemble clear copies, label them, and include a concise cover letter that references the notice number and tax year.

How to respond: best practices

  • Follow the notice instructions. If the notice includes a form or a return slip, use it and return copies by certified mail or through a trackable delivery service.
  • Always include a copy of the notice when mailing your response. Write the notice number on every page.
  • Keep copies of everything you send and notes on whom you spoke to (name, date, and phone number).
  • If the notice requires a written protest (for proposed changes), provide a clear, fact-based statement explaining why you disagree, attach supporting documents, and include your signature.

Typical notice types and what they usually mean

  • CP2000 (proposed changes): The IRS found a mismatch between what third parties reported (W-2s, 1099s) and your return. Respond by agreeing, paying, or sending documents to prove your return is correct. Response windows are usually around 30 days.
  • CP14 / Notice of Balance Due: A reminder for unpaid tax. Pay, set up an installment agreement, or respond if you dispute the amount.
  • Letter 226-J: Employer shared responsibility penalty (ACA) issues — respond with coverage proof or dispute details.
  • Notice of Deficiency (90-day letter): If you want to challenge the proposed adjustment before the IRS assesses the tax, you must file a petition with the U.S. Tax Court within 90 days.

For more about common notice codes and a practical checklist, see our detailed guide: Decoding IRS Notice Codes: A Practical Checklist for Taxpayers.

If you disagree: how to dispute and appeal

  • For minor discrepancies, provide the requested documents and a short explanation. For larger or more technical disputes, you may need to file a formal written protest and attach substantiation (copies of receipts, corrected forms, or statements).
  • If you receive a statutory notice of deficiency (the 90-day letter), your formal option to dispute before payment is to file a petition in U.S. Tax Court within 90 days of the date on the notice (see IRS Notice of Deficiency guidance).
  • If you disagree after assessment, you can still appeal through the IRS Independent Office of Appeals or pay and then file a claim for refund.

Payment, collection, and relief options

  • If you owe and cannot pay in full, consider an installment agreement, an Offer in Compromise, or a temporary delay in collection if you qualify. Each option has its eligibility rules; check the IRS payments and relief pages for details (irs.gov/payments; irs.gov/payments/offer-in-compromise).
  • First-time penalty abatement (FTA) may be available for eligible taxpayers with a clean compliance history. Ask the IRS representative about administrative relief options. Documentation and timing matter.

When to get a professional involved

  • Contact a tax professional if the amount involved is large, if the issue is complex (e.g., business returns, foreign income, audits), or if the notice threatens liens or levies. For guidance on when to reach out, see: When to Contact a Tax Professional After Receiving a Notice.
  • If you face immediate collection actions or severe hardship, contact the Taxpayer Advocate Service for free, independent help (taxpayeradvocate.irs.gov).

In my work advising taxpayers, early engagement with a tax professional often prevents escalated penalties or collection steps. Even a short, documented response can stop the clock and create time to assemble evidence.

Sample cover letter (use plain language)

[Date]
Internal Revenue Service
Notice Number: [insert notice number]
Tax Year: [insert tax year]
Taxpayer: [name and SSN last four]

To Whom It May Concern:
I am writing in response to the above-referenced notice dated [date]. I have enclosed the following documents in support of my position: [list documents]. Please apply these documents to my account and confirm receipt in writing. If you need additional information, contact me at [phone] or [email].

Sincerely,
[Signature]
[Printed name]

Include copies of the notice and clearly label attachments. Mail using a trackable service.

Common mistakes to avoid

  • Ignoring the notice; assuming it will go away.
  • Mailing originals (send copies).
  • Failing to reference the notice number and tax year.
  • Speaking to third-party callers who claim to be the IRS without verifying.

Next steps if you receive a balance-due notice

  1. Confirm the amount and reason.
  2. If you agree and can pay, pay online or set up a payment plan at irs.gov/payments.
  3. If you cannot pay, contact the IRS to request an installment agreement or explore Offer in Compromise options.
  4. If the notice mentions liens or levies, act quickly — a tax professional can help you request a hold or appeal.

For specific guidance on unpaid balances and taxpayer protections, see our page on Unpaid Tax Notice.

Professional disclaimer

This article is for educational purposes and general information only — not legal or tax advice. For advice about your particular situation, consult a licensed CPA, enrolled agent, or tax attorney.