Immediate actions after you open the notice

When you first open an IRS notice, treat it like urgent mail but not a crisis. Read the notice fully. Note the notice code (for example, CP2000 or CP14), the tax year referenced, the IRS deadline for response, and any phone numbers or return addresses. The IRS has a plain‑language resource called “Understanding Your IRS Notice or Letter” that explains common codes and next steps — save that page for reference: https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter.

In my practice (15+ years guiding taxpayers), the single best step is to create a single tracking record for the matter before you start collecting documents — a one‑page log that records the notice date, notice type, tax year, response deadline, and any contact attempts. This prevents duplicated effort and ensures nothing falls through the cracks.

Step 1 — Triage: identify scope and deadlines

  • Confirm the tax year and specific issue (income mismatch, balance due, missing return, etc.).
  • Write down the official deadline on your calendar and set reminders at two points: 10 days before and 48 hours before the deadline.
  • Decide whether you will respond personally, by mail, or through a tax professional. If you plan to authorize a representative, you may need to file Form 2848 (Power of Attorney and Declaration of Representative) — see IRS guidance on authorization forms.

If you suspect the notice is a scam, stop and verify it first using guidance like this article on how to verify an IRS notice is legitimate: https://finhelp.io/glossary/how-to-verify-an-irs-notice-is-legitimate-and-not-a-scam/ and IRS warnings about scams.

Step 2 — Collect the documents the notice requests

The notice usually tells you which documents to provide. Typical items include:

  • Copies of the tax return(s) for the year in question (Form 1040, schedules, or business returns).
  • W‑2s, 1099s, and other information returns.
  • Bank statements or broker statements showing deposits, dividends, or sale proceeds.
  • Receipts, invoices, mileage logs or canceled checks supporting deductions.
  • Proof of payments, amended returns, or previous correspondence with the IRS.

If the notice is a CP2000 (proposed changes), you’ll typically collect W‑2s/1099s showing why the IRS record differs from your return. For balance due notices (e.g., CP14), focus on proof of payment and the return pages that show the reported balance. The IRS CP2000 explanation and sample responses can be found on the IRS site and in practical guides like our CP2000 walkthrough in related posts.

Step 3 — Create a consistent filing structure (digital + physical)

I recommend a mirrored digital and physical system. Use whichever you are comfortable with, but keep both in sync until the matter is fully closed.

Suggested folder structure (root folder named with notice and year):

  • 2024CP2000Response/
  • 00_CoverLetter.pdf
  • 01TaxReturn2024.pdf
  • 02W2EmployerA.pdf
  • 031099Misc.pdf
  • 04_BankStatements/
  • 05_Receipts/
  • Index.xlsx

Naming convention rules:

  • Start filenames with a two‑digit index (01, 02) so printing preserves order.
  • Use YYYY and the tax form name (e.g., 2023W2SmithCo.pdf).
  • Keep PDFs searchable (OCR) and combine documents where logical (e.g., all W‑2s in one file).

Tools I often recommend to clients:

  • A dedicated scanner app that creates searchable PDFs (Adobe Scan, CamScanner, or a dedicated duplex scanner).
  • Cloud storage with versioning (Google Drive, OneDrive) — enable two‑factor authentication.
  • A simple spreadsheet index (columns: document number, filename, document type, brief description, page count).

Step 4 — Build an index and cover letter

Before sending anything, prepare a one‑page cover letter that:

  • Quotes the IRS notice number and tax year.
  • Briefly states the action you are taking (e.g., “Enclosed are copies of my 2023 Form W‑2 and the bank statement showing X.”).
  • Lists the attached documents by index number and filename.
  • Includes your phone number and a preferred contact time.

Attach the index spreadsheet (Index.xlsx) and include a printed copy in any physical mailing. This helps IRS clerks and your representative find the right pages quickly and reduces the chance the agency will request duplicate proof later.

Step 5 — Send, document transmission, and track delivery

  • If mailing physical documents, use certified mail with return receipt (USPS Certified Mail) or a courier with tracking. Keep copies of tracking numbers in your log.
  • If submitting digitally, follow the IRS instructions in the notice. For notices that allow fax or e‑file responses, save confirmation numbers and screenshots.
  • Never send originals unless the IRS explicitly requests them — send copies and keep originals in a safe place.

Record the date you mailed or uploaded materials on your tracking log and set a follow‑up reminder 14 days after transmission if you expect a reply.

Working with a tax professional or representative

If you hire a CPA, enrolled agent, or tax attorney, provide them with the same organized packet and send a signed Form 2848 if you want them to speak to the IRS on your behalf (see IRS Form 2848 instructions). In my experience, giving your preparer a clean, indexed packet cuts response time in half and reduces fees because they spend less time chasing documents.

Retention: how long to keep records

The IRS general guidance for recordkeeping recommends keeping records for at least 3 years from the date you filed the return or 2 years from the date you paid the tax, whichever is later, for most returns. However, keep records for 7 years if you file a claim for a loss from worthless securities or bad debt, and keep records longer if you omitted income (more than 25% of gross income) — see IRS recordkeeping guidance: https://www.irs.gov/businesses/small-businesses-self-employed/recordkeeping.

When you receive an IRS notice, keep the entire organized packet and delivery receipts until the matter is fully resolved and for the longer of the standard retention period or the date of resolution.

Common mistakes and how to avoid them

  • Sending documents without a cover letter or index — increases processing time.
  • Waiting until the deadline — start gathering documents immediately; some items (old bank statements, employer records) take time to obtain.
  • Over‑redacting or altering records — provide complete copies; if you must redact unrelated social security numbers, do so carefully and note redaction in your cover letter.
  • Ignoring follow‑up requests — track inbound and outbound communications and respond promptly.

Sample short cover letter (one paragraph)

Enclosed please find documentation in response to IRS Notice CP2000 dated May 1, 2025, for tax year 2024. The attached index lists the documents provided (01 — 2024 Form 1040; 02 — 2024 W‑2 from Acme Co.; 03 — Brokerage statement showing reported dividends). Please contact me at (555) 555‑5555 or janedoe@email.com if you need additional information. Thank you for your attention.

Real‑world example (brief)

A freelance client received a CP2000 claiming unreported 1099‑NEC income. Because we kept an up‑to‑date folder with invoices, bank deposits, and Form 1099 copies, we compiled a response packet in two business days and successfully corrected the IRS record without penalties. With disorganized clients, this process often takes weeks and can trigger unnecessary notices.

Related resources

Final tips and professional disclaimer

Keep communication factual and concise. If you disagree with the IRS, explain why and show the proof — annotations on documents (highlighting or short notes) can be helpful but don’t alter originals. In my practice, clients who arrive with a clear index and targeted cover letter resolve issues faster and with fewer follow‑up requests.

This article is educational and not a substitute for personalized tax advice. For questions about your specific notice, consult a qualified tax professional or contact the Taxpayer Advocate Service if you cannot resolve the issue with the IRS directly: https://www.taxpayeradvocate.irs.gov.

Author: Experienced tax advisor with over 15 years helping individuals and small businesses organize records and respond to IRS notices.

Sources: IRS — Understanding Your IRS Notice or Letter; IRS Recordkeeping guidance; Taxpayer Advocate Service.