Overview

The IRS sends notices and letters for many reasons: to correct math mistakes, report a mismatch in income reported to the IRS, demand payment, request documents for an audit, or flag possible identity theft. Some notices are informational and need no action; others require a timely written reply, documentation, payment, or an appeal request. Always read the notice carefully and follow the specific instructions and deadline printed on the notice (IRS: “Understanding your IRS notice or letter”).

Common notice types and what they typically mean

  • Income discrepancy (example: CP2000): Sent when the IRS’s records (W-2s, 1099s) don’t match your return. It proposes changes and gives a deadline—usually about 30 days—to agree, dispute, or provide documentation. If you disagree, sign the response and attach supporting documents.

  • Balance due / Notice of amount owed (example: CP14 or similar): Notifies you of tax, penalties, or interest due. These generally require payment or contact to arrange a payment plan to avoid further collection action.

  • Math error and missing form notices: Informational or corrective; many math error notices include instructions to accept the change or supply missing forms/documents.

  • Audit / Examination letters: Ask for records or propose an in-person/virtual audit. These require careful documentation and timely replies; you can often respond by mail or submit documents electronically.

  • Collection notices and Final Notice of Intent to Levy: Warnings that the IRS may levy bank accounts or garnish wages. These require immediate action (payment, installment agreement, or offer in compromise) to stop enforced collection.

  • Identity verification / fraud alerts (example: Letter 5071C or other ID verification requests): Ask you to confirm your identity before the IRS processes a return. Follow the instructions immediately to prevent refund delays or fraud.

What to do when you receive a notice

  1. Read the entire notice: Note the notice ID, the date, the deadline, and the specific actions requested.
  2. Compare with your records: Check paystubs, W-2s, 1099s, bank statements, and your filed return.
  3. Follow the instructions exactly: Use the return envelope and address on the notice, or use the online option indicated. Don’t send original documents unless the IRS requests them.
  4. Respond in writing when requested: If you disagree, explain why, include copies of supporting documents, sign the response, and keep copies for your files. For CP2000-type notices, use the response form and include evidence that supports your position.
  5. Pay or set up payment if you owe: If you can’t pay in full, consider an installment agreement or short-term extension. Contact the IRS using the phone number on the notice or via IRS.gov to explore options.
  6. Protect against scams: Verify the notice by checking the IRS website and the phone number printed on the letter. The IRS will not demand immediate payment via unusual methods or threaten imminent arrest.

Timing: deadlines vary—check the notice

Deadlines differ by notice type. Many correspondence notices give 30 days to reply; some collection steps have shorter timeframes. If a notice includes an appeal right (for example, a statutory Notice of Deficiency), note the strict timelines for filing petitions or appeals. When in doubt, act early or consult a tax professional to preserve your rights.

When to get professional help

  • The notice involves a large amount, lien, levy, or a Notice of Deficiency.
  • You’re unsure how to document the discrepancy or prepare a formal protest.
  • Identity theft or potential refund fraud is involved.

In my practice helping taxpayers with IRS correspondence, a prompt, documented response has prevented escalations and extra penalties in many cases. If you hire a paid preparer or tax attorney, you can authorize them to communicate with the IRS on your behalf (Form 2848).

Records and follow-up

Keep copies of all notices, your response, and proof of mailing or electronic submission. If the IRS adjusts your account, request an account transcript or view your account at IRS.gov to confirm changes. Learn how to get transcripts on the IRS site.

Authoritative resources

Internal resources

Common mistakes to avoid

  • Ignoring any notice, even if you think it’s wrong.
  • Mailing originals instead of copies when the IRS asks for supporting documentation.
  • Waiting until the last minute—delays can forfeit appeal rights or trigger collections.

Disclaimer

This article is educational only and does not replace personalized tax advice. For case-specific guidance, consult a certified tax professional or attorney.