Quick overview

Receiving a letter from the IRS is stressful for many taxpayers, but most letters are resolvable if you act deliberately. In my 15 years helping clients, I’ve found that careful reading, timely responses, and organized documentation resolve the majority of cases without escalation. This guide walks you through how to verify a notice, what information to collect, how to respond, and when to involve a tax professional.

Why these letters matter

IRS correspondence letters may:

  • Propose changes to a return (for example, a CP2000)
  • Request additional documentation or clarification
  • Demand payment or notify you of a lien or levy risk
  • Inform you of refund changes or eligibility issues

Ignoring a letter rarely makes the problem go away. Many notices contain deadlines for response or appeal that, if missed, can result in added penalties, enforced collection, or loss of appeal rights (IRS, 2025).[1]

Step 1 — Read the letter carefully, not just skim

Every IRS letter contains structured information. Key items to note immediately:

  • Notice or letter number (top-right or top-left); examples include CP2000, CP14, CP501
  • Tax year involved and the return affected
  • The IRS’s proposed change or request (what they believe is wrong or missing)
  • Specific documents the IRS asks for, if any
  • Deadline to respond or pay
  • Contact information and any IRS case or examination number

Write these items down on the first page and keep the original letter in a safe place. Do not toss it after you call — the letter is the official record of the agency’s position.

Step 2 — Verify the notice is legitimate

Scammers often pose as the IRS. Before you respond, confirm legitimacy:

  • Check the notice number and the issuer at “Understanding Your IRS Notice or Letter” on IRS.gov (IRS, 2025).[2]
  • The IRS typically initiates contact by mail, not by phone, for most collection or adjustment notices. If you received email, text, or a threatening call demanding immediate payment, treat it as suspicious (IRS, 2025).
  • Compare the issue in the letter with your records (W-2s, 1099s, tax returns).

If you suspect fraud, use the IRS identity-theft and phishing pages to report it. If the notice is real, proceed with the steps below.

Step 3 — Gather supporting documents

Collect only the documents the IRS requests. Common items include:

  • Copies of the originally filed tax return
  • W-2s, 1099s, K-1s, or other income records
  • Bank statements, canceled checks, or payment receipts
  • Receipts for deductible expenses or proof of credits

Make copies — never send originals unless the IRS specifically requests them. Organize documents in a clear folder with a cover letter summarizing what you are sending.

Step 4 — Prepare your written response (what to include)

Always respond in writing unless the letter instructs you to call. A clear written response should:

  • Reference the notice number and tax year at the top
  • Identify yourself: name, address, taxpayer identification number (TIN or SSN), and daytime phone
  • State whether you agree or disagree with the IRS’s assertion
  • Attach the documents that support your position (label them and reference the labels in your response)
  • Request confirmation in writing that the IRS received your response

Sample opening lines:
“Re: Notice CP2000 for tax year 2023 (Notice #123456789). I disagree with the proposed income adjustment. Enclosed please find a copy of Form 1099-NEC from ABC Company showing correct income reporting.”

Step 5 — How to send the response

Follow the letter’s instructions exactly. Common submission methods:

  • Mail: Use the address on the notice. Send copies only, and keep proof of mailing (USPS certified mail with return receipt, or FedEx/UPS tracking).
  • Fax: Some IRS offices accept faxes; the notice will list the number if allowed.
  • Online: For select issues or payments you may use IRS.gov secure services — check the notice for online options.

Keep a copy of everything you send and a record of the method and date sent. If you use certified mail, keep the green receipt or the tracking confirmation.

Step 6 — Pay or arrange payment if you owe

If the notice shows you owe tax and you agree, pay or set up a payment plan promptly to limit interest and penalties. Options include:

  • Pay online via the IRS Direct Pay or debit/credit options (see IRS payments pages) (IRS, 2025).
  • Request an installment agreement online or by completing the form directed in the notice.
  • Consider an Offer in Compromise only after consulting a professional — it’s not appropriate for most taxpayers.

If you cannot pay, do not ignore the notice. Respond and ask for a payment plan or temporary delay. Documentation of hardship may qualify you for an installment agreement or temporarily halted collections.

Step 7 — If you disagree, appeal or request an audit reconsideration

Many letters include instructions on how to disagree and the timeframe to appeal. Don’t miss deadlines — typical response windows are 30 days, but check your notice. If you need more time, you can request an extension or file an appeal as described in the notice. The IRS Office of Appeals offers independent review for many disputes (IRS, 2025).

Special situations

  • Identity theft: If the IRS suspects identity theft, follow IRS identity-theft instructions immediately and file Form 14039 if required.
  • Third-party errors: If a payer (employer, bank) reported incorrect information, get a corrected form (W-2c, corrected 1099) and send the corrected document to the IRS.
  • Collection notices (liens, levies): These require urgent attention. Consider professional representation; tax pros can request stays of collection while issues are resolved.

Recordkeeping and follow-up

  • Maintain a permanent file for the notice and all responses.
  • Note the date you responded and the method used.
  • If you don’t hear back in the expected timeframe (30–60 days), follow up using the case number in the letter.

When to get professional help

Call or hire a qualified tax professional if:

  • The notice involves large sums, potential lien or levy, or criminal implications
  • You receive a notice you don’t understand after reviewing your records
  • The IRS asks for extensive documentation you can’t assemble
  • You prefer an authorized representative to communicate on your behalf

In my practice I often save clients time and prevent unnecessary collection action by drafting responses, assembling supporting documents, and negotiating installment agreements. Authorized representatives (CPAs, enrolled agents, tax attorneys) can contact the IRS on your behalf with Form 2848 (Power of Attorney).

Common mistakes to avoid

  • Waiting to respond because you’re scared — response preserves rights
  • Sending original documents when copies will do
  • Failing to reference the notice number clearly
  • Assuming a phone call is from the IRS without verifying the caller

Useful resources and further reading

Internal FinHelp links

Final checklist before sending a response

  • Copy of the IRS notice, front and back
  • Written cover letter referencing the notice number and taxpayer information
  • Labels and table of contents for attachments
  • Proof of mailing or electronic confirmation
  • A recorded follow-up date in your calendar

Professional disclaimer
This article is for educational purposes and does not replace personalized tax advice. If your IRS notice involves significant amounts, a potential lien or levy, or criminal exposure, consult a qualified tax professional (CPA, enrolled agent, or tax attorney) immediately.

Footnotes
[1] See IRS guidance on notices and appeals timelines: “Understanding Your IRS Notice or Letter,” IRS.gov (2025).
[2] General information on IRS notices is available from the IRS: https://www.irs.gov/individuals/understanding-your-irs-notice-or-letter (accessed 2025).