In my 15 years advising taxpayers, I’ve seen quick, organized responses stop most IRS notices from escalating to audits. The IRS generally sends a notice to resolve mismatches or missing information; it’s a chance to fix the record rather than a penalty in itself (IRS.gov: “Understanding Your IRS Notice or Letter”).
Quick, prioritized steps to take right away
- Verify the notice’s legitimacy. Confirm the notice code and sender at the IRS website and compare details to the notice you received. Don’t call or pay until you verify — scammers often mimic IRS language. See our guide: How to Verify an IRS Notice Is Legitimate Before Responding. (IRS.gov)
- Read the notice carefully and note the deadline. Most notices give a response date — use that date. If the notice lists a timeframe (for example, 30 days), aim to reply well before the deadline.
- Gather supporting documents. Pull paystubs, 1099s, bank statements, receipts, and any forms referenced in the notice.
- Respond exactly as requested. If the IRS asks for copies, send copies (not originals). If it asks for an amended return, file Form 1040-X or the specified form. Always follow the instructions and send materials to the address or online portal listed on the notice.
- Use traceable delivery. If mailing, send via certified mail or a service with tracking and keep digital copies of everything you send.
What to include in your response
- A copy of the IRS notice (front and back).
- A short, clear cover letter summarizing your response and listing attachments.
- Documents that directly support your position (W-2s, 1099s, receipts, bank statements, invoices, canceled checks).
- Calculations or a brief explanation if you’re correcting math or reporting additional income.
How to lower the chance of escalation (audit triggers to avoid)
- Report all income and match 1099s and W-2s to your return. Discrepancies between what payers report and what you report are the most common trigger.
- Keep accurate, dated records. IRS guidance recommends keeping most records at least three years; keep them longer (up to six years) if you substantially underreported income (IRS: recordkeeping guidance).
- Avoid “round” or estimated numbers for large claims; be prepared with receipts and explanations for large deductions.
- File returns timely and electronically when possible — e-file reduces manual entry errors.
If the notice requests more tax or proposes changes
- Don’t ignore bills or proposed adjustments. If you agree, pay or set up a payment plan. If you disagree, respond with evidence and request reconsideration.
- Consider filing an amended return only when you have solid documentation supporting changes.
When to get professional help
- If the notice threatens assessment of additional taxes, penalties, or levies, contact a CPA, enrolled agent, or tax attorney.
- If the IRS sends a statutory notice (for example, a Notice of Deficiency, CP3219), you may have a short, specific window to petition Tax Court — get professional help immediately. See our related overview on audits and examinations: Decoding Audit and Examination Notices: A Practical Guide.
Track your response and follow up
- Keep a log of dates you mailed or uploaded documents and the names of IRS contacts.
- Use the IRS Online Account or the phone number on the notice to check status after 30–45 days. For more on reading notices and deadlines, see: How to Read an IRS Notice: Quick Guide to Next Steps and Deadlines.
Common mistakes to avoid
- Sending original documents (always send copies and keep originals).
- Waiting until the notice deadline or assuming silence means acceptance.
- Over-explaining with extraneous paperwork — provide clear, relevant documentation tied to the issue.
Practical example from my practice
A client received a notice about unreported freelance income. We verified the 1099 sender, gathered three months of bank deposits and invoices, and returned a concise cover letter explaining timing differences between invoice dates and payments. The IRS closed the case without further action.
Final checklist before sending a response
- Verify notice authenticity (IRS and our verification guide).
- Include a copy of the notice, a cover letter, and supporting documents.
- Send via tracked mail or upload if the notice allows electronic submission.
- Keep copies and a response log.
Professional disclaimer: This article is educational and not individualized tax advice. If your notice involves large balances, proposed penalties, or legal questions, consult a qualified tax professional or the Taxpayer Advocate Service (https://www.taxpayeradvocate.irs.gov/).
Authoritative sources: IRS — “Understanding Your IRS Notice or Letter” and IRS recordkeeping guidance (IRS.gov).
