How should you document IRS notices?

Receiving an IRS notice can feel stressful, but the way you record and store that notice determines how easily you can resolve the issue. Good documentation turns a confusing letter into a clear paper trail that shows what happened, when, and why. Below I lay out a practical, professional approach you can adopt immediately—based on common practice in tax offices and my 15+ years working with individuals and small businesses.

Why documentation matters

  • It creates an objective timeline if the IRS asks for verification or opens an audit (IRS guidance stresses keeping correspondence and records related to returns) (IRS, “Understanding your IRS Notice”, https://www.irs.gov/filing/individuals/understanding-your-irs-notice).
  • It limits errors and duplicated effort when multiple notices arrive or when you work with a tax advisor.
  • It supports appeals, penalty relief requests, or offers in compromise by showing timely responses and supporting evidence (see IRS Publication 556 for appeals and examinations, https://www.irs.gov/pub/irs-pdf/p556.pdf).

In my practice, taxpayers who maintain a simple, consistent log almost always resolve issues faster than those who rely on memory or loose paper stacks.

What to capture for every notice (minimum fields)

Create a one-line log entry for each notice plus a detailed document file. Each entry should include:

  • Date received (stamp or note when it arrived).
  • Notice type and code (e.g., CP2000, Notice of Deficiency, CP14).
  • Tax year(s) referenced and IRS account number (if shown).
  • Summary of the issue in one sentence.
  • Deadline in the notice and any extension dates.
  • Action required and action taken (with dates).
  • Names and contact details of anyone you or the IRS communicated with.
  • File path and filename for the stored document (physical folder ID or digital path).

A compact example log row:

Date received Notice Tax Year Summary Deadline Action taken File
2025-03-12 CP2000 2023 Proposed income increase from 1099-MISC 2025-04-26 Sent explanation w/ corrected 1099 on 2025-03-20 /tax/2023/IRS-CP2000-2025-03-12.pdf

Recommended folder structure and file naming

Keep either a physical binder or an organized digital folder. Many taxpayers use both (scan and index paper notices immediately).

Folder structure (digital or physical):

  • /Taxes/
  • /2025/ (tax year)
    • /IRS-Correspondence/
    • 2025-03-12CP20001099_Discrepancy.pdf
    • 2025-07-10_NoticeOfBalanceDue.pdf

File naming best practices:

  • Start with date YYYY-MM-DD so files sort chronologically.
  • Include notice code and a short topic.
  • Add a suffix for responses, e.g., Response2025-03-20.pdf.

Digital tools and backups

  • Scan every paper notice at the moment you open it. Use a PDF scanner app that OCRs text for searchability.
  • Store primary copies in a secure cloud folder (e.g., encrypted cloud storage) and maintain an offline backup (external drive or encrypted USB).
  • Use document-management or tax software with tagging and notes fields if you already work with a CPA platform.

Security note: protect your files with strong passwords and two-factor authentication. Tax notices include sensitive personal data—treat them like financial accounts.

How to verify a notice is genuine

Scammers often impersonate the IRS. Before you respond or click a link: verify legitimacy.

  • The IRS will usually send an initial notice by mail. If contact is by email or phone, verify via the IRS’s official channels (see https://www.irs.gov/filing/individuals/understanding-your-irs-notice and the site’s guidance on scams).
  • Look up the notice code on IRS.gov and confirm the subject line and instructions match official guidance.
  • If in doubt, call the IRS phone number listed on the official IRS page rather than a number in the suspicious message.

See our guide on recognizing scams for step-by-step checks: Recognizing Scam Notices vs. Genuine IRS Correspondence.

(Internal link: Recognizing Scam Notices vs. Genuine IRS Correspondence — https://finhelp.io/glossary/recognizing-scam-notices-vs-genuine-irs-correspondence/)

How to document your response

When you respond, add a response document to the file and update the log. Include:

  • A copy of the response letter or email you sent.
  • Proof of delivery—if you mailed documents, use certified mail with return receipt and save the receipt (more below; see our certified mail guide).
  • Copies of supporting documents (W-2, 1099, bank statement pages, canceled checks), redacting unrelated sensitive data if necessary.
  • A short cover letter that lists attachments and explains what you are providing and why.

Internal link: Certified Mail for IRS Notices — https://finhelp.io/glossary/certified-mail-for-irs-notices/

Deadlines and calendar tracking

IRS notices have strict response windows. Put the deadline into your calendar immediately with at least two reminder dates: one at 14 days before and another 3 days before. If you need extra time, document your extension request and the IRS’s reply.

For guidance on allowable response timelines, refer to our timeline resource for responding to notices: Timeline for Responding to IRS Notices: Deadlines and Extensions.

(Internal link: Timeline for Responding to IRS Notices: Deadlines and Extensions — https://finhelp.io/glossary/timeline-for-responding-to-irs-notices-deadlines-and-extensions/)

Special handling for audits and deficiency notices

For audit requests and Notices of Deficiency, create a separate audit packet:

  • A cover sheet listing each requested item and whether it was provided.
  • A chronological correspondence log showing every exchange.
  • Copies of the complete tax return(s) in question with annotations where you reference supporting documents.

These packets speed the audit process and make it easier for your representative (CPA or attorney) to act quickly.

Retention rules (practical guidance)

IRS retention guidance (as of 2025) suggests keeping records for at least three years after filing in most cases. Keep records longer if:

  • You omitted more than 25% of gross income (keep for six years).
  • You filed a claim for a loss from worthless securities or bad debt (keep for seven years).
  • You did not file a return or filed a fraudulent return (keep indefinitely).

See IRS recordkeeping and Publication 556 for full details (https://www.irs.gov/filing/individuals/recordkeeping and https://www.irs.gov/pub/irs-pdf/p556.pdf).

Working with a tax professional

If you work with a CPA or enrolled agent, grant them secure access to your documented folder or provide a copy of the packet. Ask your professional to:

  • Confirm the interpretation of the notice.
  • Draft responses and keep a copy saved in the master file.
  • Log phone calls with the IRS (include agent names, badge numbers, and call times).

In my practice, adding a single page “communications log” to the file (date, who called, summary, next steps) reduces duplicate follow-ups and confusion.

Practical templates (copy and adapt)

1) Short cover letter header (one paragraph):

“Re: Notice CP2000, Tax Year 2023. Please find attached corrected 1099 documentation and reconciliation showing reported income and supporting records. Contact name: [Your Name], phone: [XXX-XXX-XXXX].”

2) Response checklist:

  • Read and summarize the notice.
  • Scan and store original notice.
  • Identify supporting documents.
  • Draft response and attach proof.
  • Send via certified mail (or e-file/support channel) and save proof.
  • Update correspondence log.

Common mistakes to avoid

  • Failing to index scanned files by date and notice code.
  • Responding without retaining proof of what you sent.
  • Using ambiguous file names that make retrieval difficult (e.g., “letter.pdf”).
  • Ignoring the notice or missing the deadline.

Final steps after resolution

When an issue is resolved, create a final-resolution page that includes the closing notice, any payments made (with confirmation numbers), and the date the IRS closed the issue. Store this with the original notice and mark the log entry as “Closed” with the closing date.

Resources and authoritative references

Professional disclaimer

This article is educational and does not constitute legal, accounting, or tax advice. For case-specific guidance, consult a qualified tax professional or attorney.

By adopting these documentation habits—standardized file names, an up-to-date correspondence log, verified delivery records, and secure backups—you reduce stress, shorten resolution time with the IRS, and protect your financial record over the long term.