Why this matters

IRS notices start the clock on important deadlines and often explain both the problem and the IRS’s proposed solution. A correct, timely response protects your rights, limits penalties and interest, and preserves appeal options (IRS: “Understanding Your IRS Notice or Letter”).

Quick 5-step checklist (do these first)

  • Pause and verify: Confirm the notice is legitimate before acting. Check the IRS guidance on notice verification and compare details with your records (see “How to Verify an IRS Notice Is Legitimate Before Responding”).
  • Read every line: Note the notice code at top, the reason for the notice, the amount (if any), the deadline, and contact instructions.
  • Compare to your return: Match the IRS’s numbers and source documents (W-2s, 1099s, schedules). Note discrepancies and gather supporting documents.
  • Record the deadline: Deadlines usually range from 21 to 90 days depending on the notice type — treat them as firm.
  • Respond in writing or pay: Follow the notice’s instructions exactly. If you disagree, send documentation and a clear written explanation.

Key elements inside an IRS notice

  • Notice code and letter (e.g., CP or Letter number): Tells you the type of notice and typical next steps.
  • Reason: Explains why the IRS issued the notice (underreported income, math error, missing forms, balance due).
  • Action required: Pay, reply with documents, request an installment plan, or file a petition.
  • Deadline and appeals language: Explains time to respond or appeal (for a Notice of Deficiency, the statutory period to petition Tax Court is generally 90 days if the notice was mailed in the U.S.).
  • Contact details: Phone number and mailing address for the IRS unit handling the matter.

Common notice types and usual priorities

  • Balance due notices (e.g., CP14): Prioritize payment options and request a payment plan if you cannot pay in full (see IRS Online Payment Agreement).
  • CP2000 / Notice of Proposed Adjustment: Review the proposed changes, compare to your return, and respond with documentation if you disagree.
  • Notice of Deficiency (CP3219A): High priority—this notice starts the clock to take the case to Tax Court or otherwise respond.
  • Final Notice of Intent to Levy (often a CP504 or Final Notice): Immediate action required to avoid wage garnishment or bank levy; contact the IRS or a tax professional right away.

How to respond (practical steps)

  1. Verify identity and legitimacy
  • Confirm the notice has your correct name, SSN/ITIN, and the notice code. Scams look similar but often demand payment by unusual methods—confirm using IRS guidance before paying.
  • For scams and identity-theft guidance, use IRS resources and the Taxpayer Advocate Service if needed (IRS & Taxpayer Advocate Service).
  1. Gather documentation
  • Pull the tax return in question, W-2s/1099s, bank records, and any correspondence that supports your position.
  1. Write a focused reply
  • Include: your full name, SSN/ITIN, notice code, tax year, clear statement (agree/disagree), and copies of supporting documents. Keep the original return; send copies of documents.
  • Use certified mail or an IRS-designated mailing method when sending documentation to create a proof trail.
  1. If you owe and cannot pay
  • Apply for an Online Payment Agreement or consider short-term delay, installment agreement, or Offer in Compromise if eligible (IRS: Online Payment Agreement; Offer in Compromise page).
  • Contact the IRS before the deadline to avoid collection actions.
  1. If you disagree and need help
  • If the notice proposes an adjustment you can document, respond directly with those documents.
  • For complex disputes, consider representation by a CPA, EA, or tax attorney. See our guide on when to seek professional help for IRS notices.

Practical templates (short)

  • Disagreement letter: State you disagree, reference the notice code and tax year, list each disputed item, and attach copies of supporting documents.
  • Payment plan request: State inability to pay in full, propose a realistic monthly amount, and include recent pay stubs and a short budget summary.

Common mistakes to avoid

  • Ignoring the notice: This escalates the problem and can lead to liens, levies, or loss of appeal rights.
  • Paying before verifying: Scammers often mimic IRS demand letters; verify legitimacy first.
  • Sending originals: Always send copies unless the notice specifically requests originals.

Resources and next steps

  • How to verify a notice is real: “How to Verify an IRS Notice Is Legitimate Before Responding” (FinHelp).
  • When to get professional help: “When to Seek Professional Help After Receiving an IRS Notice” (FinHelp).
  • Learn how notices are structured: “The Anatomy of an IRS Notice: Reading Codes, Deadlines, and Contact Info” (FinHelp).

Authoritative sources

Professional disclaimer

This content is educational and not individualized tax advice. For guidance specific to your situation, consult a qualified tax professional or the Taxpayer Advocate Service.

Internal links

Last practical tip

Document every action you take (dates, names, what you sent). A clear paper trail is the best protection when resolving IRS notices.