IRS Sent Me a Letter - What Should I Do?

You check the mail and your stomach drops: there's an envelope from the Internal Revenue Service.

Before you panic, take a breath. Most IRS letters are not audits. Many are simple notices that can be resolved quickly - if you handle them correctly.

Here's what to do.

Step 1: Open It (Seriously)

This sounds obvious, but many people are so anxious about IRS mail that they leave it unopened for weeks or months. Every IRS notice has a response deadline - usually 30 to 60 days. Missing that deadline limits your options and can escalate the situation unnecessarily.

Open it. Read it. Note the deadline.

Step 2: Identify the Notice Type

Every IRS notice has a number in the top right corner (like CP2000, CP14, or LTR 3219). This tells you exactly what it's about:

Common (Usually Not Scary)

Notice	What It Means
CP14	You owe a balance. This is a bill.
CP2000	The IRS found income that doesn't match your return (like a 1099 you forgot).
CP11 / CP12	The IRS adjusted your return - you may owe more or get a bigger refund.
CP49	Your refund was applied to a past-due balance.
CP501 / CP503 / CP504	Reminder notices for unpaid balance (escalating urgency).

Requires Immediate Attention

Notice	What It Means
LTR 3219 (90-day letter)	Statutory Notice of Deficiency - the IRS is proposing additional tax. You have 90 days to respond or petition Tax Court.
CP90 / CP297	Intent to Levy - the IRS plans to seize assets or garnish wages.
CP91 / CP298	Intent to levy Social Security benefits.
LTR 1058	Final Notice of Intent to Levy. This is serious.

If you received any notice from the "Requires Immediate Attention" category, contact a tax professional today - not next week.

Step 3: Don't Ignore It

The #1 mistake people make with IRS notices is doing nothing. Here's what happens when you ignore them:

1. CP14 (you owe money) → penalties and interest accumulate
2. CP2000 (income mismatch) → IRS assumes the full amount is taxable and sends a bill
3. CP504 (final reminder) → IRS begins collection actions
4. CP90/LTR 1058 (intent to levy) → wages garnished, bank account seized

Each notice is a step up the enforcement ladder. The earlier you respond, the more options you have.

Step 4: Don't Call the IRS Yourself (If It's Complex)

For simple notices - like a CP12 adjustment you agree with - you probably don't need help.

But for anything involving a balance you can't pay, a proposed change you disagree with, or collection threats, having a tax professional handle it makes a significant difference.

An Enrolled Agent (EA) is licensed by the IRS to represent taxpayers directly. They can: - Call the IRS on your behalf (and navigate the hold times and bureaucracy) - Request penalty abatement if you qualify - Set up a payment plan that works for your budget - Challenge proposed changes with documentation - Stop or delay collection actions while your case is resolved

Step 5: Check if It's Even Real

IRS scams are widespread. The real IRS: - ✅ Sends official mail via USPS (not email or text) - ✅ Includes a notice number and your taxpayer ID (last 4 of SSN) - ✅ Never demands immediate payment by gift card, wire transfer, or cryptocurrency - ✅ Never threatens arrest over the phone

If you're unsure whether a letter is legitimate, a tax professional can verify it in minutes.

What NOT to Do

• ❌ Don't ignore it - it won't go away
• ❌ Don't call the number on a suspicious letter - verify through IRS.gov first
• ❌ Don't agree to a CP2000 adjustment without checking - the IRS may have it wrong
• ❌ Don't pay a balance you can't afford all at once - payment plans exist
• ❌ Don't amend your return without professional guidance - this can trigger more issues

The Bottom Line

An IRS letter is not a death sentence. Most of the time, it's a fixable issue - a math error, a missing form, or an unpaid balance with straightforward solutions.

The key is to respond on time, respond correctly, and know when to get help.