Introduction

An IRS notice is an official statement about your tax account — it may explain an adjustment, request information, offer a refund change, or start a collection process. In my 15+ years helping clients with notices, I’ve found most problems come from missing a deadline or overlooking a small line that changes the required response. This guide breaks down the key sections you’ll see and practical next steps.

Quick checklist (read first)

  • Find the notice number and mailing date.
  • Confirm the tax year(s) referenced.
  • Note deadlines and required actions.
  • Compare the IRS’s account summary to your tax records.
  • Keep a copy and document any response you send.

The core sections and what to look for

  1. Notice number and title
  • Where it appears: usually top-right or top-left.
  • Why it matters: notice codes (e.g., CP2000, CP11) tell you the type of issue and possible next steps. Look up the code on IRS.gov for details (IRS notice glossary). Example: CP2000 flags a discrepancy between income reported to the IRS and what you reported on your return (IRS).
  1. Tax year and account summary
  • What it shows: the tax year(s) affected, original tax, payments, adjustments, and new balance or refund.
  • Tip: Match figures to your filed return and W-2/1099 records before responding.
  1. Explanation of change (the heart of the notice)
  • What it contains: a plain-language explanation of why the IRS made an adjustment or sent the notice.
  • Read carefully: this section may list the source of the discrepancy (missing 1099, math error, unreported income).
  1. Action required and deadline
  • Look for exact actions: pay, sign and return a form, provide documentation, or file a protest/appeal.
  • Deadlines matter: some notices give 30 days to respond, while a Notice of Deficiency (the “90‑day letter”) typically gives 90 days to petition the U.S. Tax Court (90 days; 150 if outside the U.S.). Missing a deadline can limit your options.
  1. Payment instructions and options
  • Check acceptable payment methods, installment or online payment links, and where to send checks.
  • If you can’t pay, the notice should indicate collection notices or who to contact about payment plans.
  1. Contact information and next steps
  • Confirm IRS phone numbers (use IRS.gov to verify) and any specific mailing address for responses.
  • If the notice includes a secure ID or reference number, include it in all communications.
  1. Appeal rights and how to dispute
  • Many notices explain how to disagree and the timeframe for appeal or petition. Keep copies of all supporting docs and follow the dispute instructions exactly.

Real-world examples

  • CP2000: Income discrepancy — respond with documentation (W-2s, 1099s) or accept the change.
  • CP11: Refund adjustment — typically explains why an expected refund changed and how to review it.
  • Notice of Deficiency (90‑day letter): gives you the right to file a Tax Court petition; act promptly to preserve appeal rights.

Practical steps after reading any notice

  1. Verify legitimacy: confirm the notice using IRS resources before sharing sensitive info (see our guide on verifying notices: How to Verify an IRS Notice Is Legitimate Before Responding).
  2. Pause and compare: match the IRS figures to your tax return and source documents.
  3. Gather evidence: assemble W-2s, 1099s, receipts, and correspondence.
  4. Respond in writing when possible: follow the notice’s instructions or use our checklist to build a response package (How to Prepare a Professional Response Package to an IRS Notice).
  5. Get help when needed: complex notices or collection threats often warrant a CPA, EA, or tax attorney.

Common mistakes to avoid

  • Assuming every notice is a demand for payment; some request only information or explain a refund change.
  • Missing or ignoring deadlines.
  • Calling numbers on suspicious letters without verifying authenticity.
  • Sending incomplete documentation.

Professional tips and strategies

  • Document everything: date stamp mailed responses and keep certified-mail receipts.
  • Use the exact notice code on all replies so IRS staff can quickly match your correspondence to the right account.
  • If you accept an adjustment, pay any tax due promptly or set up an installment agreement to limit penalties and interest.
  • For collection notices, consider your options: installment agreement, offer in compromise, or currently not collectible status — evaluate with a professional.

Frequently asked questions

Q: What if I don’t understand the legal language?
A: Focus on the action required and deadline. For interpretation, consult a tax professional. The IRS explains common notices online (see Understanding Your IRS Notice or Letter at IRS.gov).

Q: Can I appeal every notice?
A: Most notices include appeal rights but the process and deadlines vary. A Notice of Deficiency has strict rules for Tax Court petitions.

Relevant FinHelp resources

Authoritative sources

Disclaimer

This content is for educational purposes only and does not replace personalized tax advice. For decisions that affect your tax liability, consult a qualified tax professional.

In my practice, a timely, documented response is the single most effective step taxpayers can take to limit penalties and preserve appeals rights.