Immediate steps to take

  1. Verify the contact is real. The IRS usually initiates contact by mail, not by unexpected phone calls or email. If you get a call demanding immediate payment, it may be a scam—confirm with the IRS at the official site before sharing information (IRS warning on scams: https://www.irs.gov/newsroom/tax-scams-consumer-alerts).
  2. Read the notice or letter carefully. Look for the notice number, the tax year involved, amounts, and any deadline or required response. Notices will explain whether you owe, need to provide documents, or are being audited (see Understanding Your IRS Notice or Letter at the IRS: https://www.irs.gov/understanding-your-irs-notice-or-letter).
  3. Don’t ignore deadlines. Many IRS letters include a response or appeal deadline. Missing a deadline can limit your options and increase penalties and interest.
  4. Gather records. Collect the tax returns, W-2s, 1099s, receipts, bank statements, and any documentation referenced in the notice. Organize copies so you can respond clearly and quickly.
  5. Decide how to respond. Common responses are: pay the amount, request a payment plan, dispute the IRS findings with documentation, or appeal. The IRS provides payment options and instructions online (see IRS payment options: https://www.irs.gov/payments).

When to get professional help

  • Hire a CPA, enrolled agent (EA), or tax attorney if the notice involves large amounts, a Notice of Deficiency, criminal exposure, or complex business tax issues. A representative can communicate with the IRS on your behalf.
  • If you consider settling your tax debt, review Offer in Compromise eligibility and documentation requirements; our detailed guides explain when it’s realistic and how to prepare (Offer in Compromise guide, Offer in Compromise vs Installment Agreements).

Quick checklist to protect yourself

  • Confirm the notice number and tax year.
  • Do not provide sensitive info to callers who contact you first.
  • Make copies of all IRS letters and your responses.
  • Track deadlines on a calendar and set reminders.
  • Keep communication in writing when possible.

Common mistakes to avoid

  • Ignoring the letter: silence usually makes the situation worse.
  • Paying someone who claims they can eliminate your tax debt without checking eligibility.
  • Signing blank forms or authorizing a third party without verifying credentials.

Examples (realistic scenarios)

  • Small discrepancy: The IRS proposes a change after receiving a corrected 1099. If you can show the corrected form and a matching return, you can usually respond with documentation to resolve it.
  • Notice of Deficiency: This requires careful review because you can file a petition in Tax Court within the specified time frame. Get representation if amounts or legal issues are substantial.

Tips from practice

  • Be methodical: create a single folder (digital and/or physical) for a given IRS issue and date-stamp everything you send or receive.
  • Ask for everything in writing: if an IRS agent says something by phone, follow up to confirm details by mail.
  • If you can’t pay in full, request a payment plan rather than avoiding contact—installment agreements reduce collection pressure.

Scams and safety

The IRS will not: demand immediate payment by gift card, threaten arrest for nonpayment, or insist on a single unusual payment method. Report suspicious calls or emails directly to the IRS and the Treasury Inspector General for Tax Administration (TIGTA) (IRS scam guidance: https://www.irs.gov/newsroom/tax-scams-consumer-alerts).

Professional disclaimer

This article is educational and does not replace personalized tax advice. For specific legal or tax representation, consult a licensed CPA, enrolled agent, or tax attorney.

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