Quick overview

Receiving an IRS notice is stressful, but the first 30 days are the most important for controlling the outcome. This guide gives a practical, prioritized 30-day action plan, professional tips I use in practice, and links to additional resources so you can respond accurately and quickly. The IRS explains notices and what they mean on its website — start there for code-specific details (IRS: Understanding Your IRS Notice).

Why the first 30 days matter

Many notices require some form of response or payment by a deadline. Even when the notice itself doesn’t demand an immediate action, responding quickly preserves appeal rights, prevents interest and penalties from accumulating, and often stops automated enforcement steps. In my 15+ years working with taxpayers, early, well-documented replies reduce downstream costs and stress.

30-day action plan (by week)

Week 1 — Do these immediately

  • Read the notice carefully. Note the notice code, the tax year(s) involved, and any deadline printed on the notice.
  • Verify authenticity. The IRS first contacts taxpayers by mail. If you got an email or text, treat it as suspicious. Confirm the notice by visiting the IRS site or calling the number printed on the notice (not a number in an email or text). See IRS guidance on verifying a notice: https://www.irs.gov/individuals/understanding-your-tax-notice.
  • Record receipt. Create a folder (digital and physical). Scan or photograph the notice and save the image and original mailing date. Log the date you opened the notice and who in your household or office handled it.
  • Don’t panic or sign anything immediately. Many taxpayers respond with incomplete info or concede liability prematurely.

Week 2 — Gather facts and documents

  • Cross-check details against your tax return, W-2s, 1099s, bank statements, and business records. The IRS usually sends notices after matching third-party data (employers, banks, payers) against your return.
  • Identify exactly what the IRS is asking for: proof of income, a corrected form, a payment, or an explanation.
  • If you need representation or specialized help, contact a CPA, EA, or tax attorney now. If you retain a representative, complete IRS Form 2848 (Power of Attorney) so your agent can negotiate on your behalf.
  • If the notice references a computational error you agree with, calculate the new balance including interest and penalties.

Week 3 — Decide and prepare your response

  • If you accept the IRS calculation and can pay immediately, plan payment or set up a short-term installment agreement via the IRS Online Payment Agreement system. Paying quickly reduces interest and collection activity.
  • If you disagree or need to supply documentation, prepare a concise written response with copies of supporting documents. Do not send originals unless requested.
  • When mailing, include a copy of the notice, a clear cover letter stating why you disagree (or what you’re providing), your taxpayer identification (name, SSN or ITIN) and contact information, and a worksheet that maps each supporting document to the IRS issue.
  • Consider certified mail with return receipt or use the IRS’ secure online correspondence options if the notice allows electronic uploads.

Week 4 — Send, confirm, and follow up

  • Send your response with delivery confirmation. Keep proof of mailing and photographic copies of everything you sent.
  • Note the expected IRS processing time listed on the notice. Timelines vary; correspondence responses often take several weeks.
  • If you set up a payment plan, keep a record of the agreement number, terms, and payment dates.

Specific tactics and professional tips

  • Read the code. Every IRS notice has a code (e.g., CP2000-style proposals). The code tells you whether the IRS is proposing a change, asking for information, or demanding payment. If you need help decoding the code, see our guides on common notice codes and how to prioritize them (see “decoding the most common IRS notice codes” and “how to read and prioritize multiple IRS notices at once”).

  • Don’t mix up correspondence. If you receive multiple notices for the same year, address them together in one packet and reference all related notice numbers. Our article on how to read and prioritize multiple IRS notices at once can help you triage multiple messages: How to read and prioritize multiple IRS notices at once (https://finhelp.io/glossary/how-to-read-and-prioritize-multiple-irs-notices-at-once/).

  • Preserve appeal rights. If the notice gives you a right to protest or an appeal, follow the instructions exactly and keep copies. Missing an appeal deadline can limit your options.

  • Use clear organization. Number documents in the order you reference them and include a table of contents in longer packets. Auditors and IRS examiners respond better to organized, referenced submissions.

  • When in doubt, ask for an extension or more time. The IRS sometimes grants reasonable extensions for documentation if you request them promptly in writing and explain why you need more time.

Common notice types and quick responses

  • CP2000/Income mismatch-type notices: These propose changes based on third-party data. Compare the IRS data with your records. If the IRS is wrong, respond with copies of W-2s, 1099s, or corrected forms. If you agree, sign and return the response and pay or set up payments (IRS CP2000 info on proposed changes: https://www.irs.gov/).

  • Notices demanding payment: If you can pay, do it to stop interest. If you cannot, promptly apply for an installment agreement or an Offer in Compromise only after consulting a professional. Do not ignore payment notices.

  • Audit or examination notices: Gather requested records for the years listed. Organize documents chronologically and include a concise statement explaining any complex transactions. See our audit preparation resources for document checklists and tips (Preparing for an IRS Income Tax Audit: Documents to Gather).

  • Notice of intent to levy or lien: These require urgent action. Contact the IRS or a professional immediately to discuss collection alternatives, holds, or appeals. Our related article on the IRS notice timeline explains steps after a levy notice: Understanding the IRS notice timeline (https://finhelp.io/glossary/understanding-the-irs-notice-timeline-from-inquiry-to-levy/).

Practical examples from my practice

  • Example 1: A client received a CP2000 proposing $9,000 in additional income. We responded within 20 days with copies of corrected 1099s and payroll records; the IRS adjusted its records and rescinded proposed tax and penalties.

  • Example 2: Another client got a payment demand but could not pay immediately. We applied for a short-term installment agreement within 10 days; the IRS approved an automatic online agreement and stopped collection notices while payments started.

These outcomes are typical when taxpayers act promptly and supply clear evidence.

How to verify authenticity and avoid scams

  • The IRS generally initiates contact by mail. If you receive an email, text, or phone call demanding immediate payment and threatening arrest, it’s likely a scam. Verify any suspicious contact by using IRS resources: https://www.irs.gov/newsroom/tax-scams-consumer-alerts.

  • If a caller asks for payment by gift card, cryptocurrency, or wire transfer, hang up and report the incident to the Treasury Inspector General for Tax Administration (TIGTA) and the IRS.

When to hire a pro and how to choose one

  • Hire a CPA, enrolled agent (EA), or tax attorney for complex notices (multi-year adjustments, large proposed liabilities, or notices that trigger enforcement). If you retain a professional, use Form 2848 so they can speak to the IRS for you.

  • Check credentials, ask for prior experience with similar notices, and request a written fee estimate. In my experience, a good tax pro saves clients more than the cost of representation when issues are complex.

Records to keep and for how long

  • Keep tax returns and supporting records for at least three years after filing; seven years when the IRS suspects a substantial understatement or fraud. Keep records longer if they relate to property (for basis) or unresolved audits.

Appeal and collection alternatives

  • If you disagree after the IRS adjusts your return, you can appeal. The IRS Independent Office of Appeals handles disagreements; follow the notice instructions to request an appeal or conference.

  • Collection alternatives include installment agreements, offers in compromise, and currently not collectible (hardship) status. Each has different qualifications—consult the IRS site and a professional before applying.

Common mistakes to avoid

  • Ignoring the notice
  • Sending original documents instead of copies
  • Missing the deadline or mailing to the wrong IRS address
  • Discussing the case publicly or on social media

For more on mistakes people make and how to correct them, see our guide to common mistakes on IRS notices and how to correct them: Common mistakes on IRS notices and how to correct them (https://finhelp.io/glossary/common-mistakes-on-irs-notices-and-how-to-correct-them/).

Final checklist (30-day summary)

  1. Verify notice authenticity and log receipt.
  2. Read all instructions and identify the notice code and tax year(s).
  3. Gather and organize supporting documents.
  4. Decide whether to pay, dispute, or request more time.
  5. Send a clear, documented response with delivery confirmation.
  6. Track IRS acknowledgment and next steps; follow up if you don’t hear back in the time shown on the notice.

Disclaimer

This article provides general information based on current IRS procedures as of 2025 and my professional experience. It is not legal or tax advice for your specific situation. For case-specific guidance, consult a qualified CPA, enrolled agent, or tax attorney licensed in your state.

Authoritative sources