An IRS envelope in the mailbox tends to trigger one of two reactions: open it immediately with a knot in your stomach, or set it aside and hope it resolves itself. Neither is the right response. Most IRS notices are routine, most have deadlines, and almost all of them give you more options the sooner you act.
Here is how to work through one without panicking.
1. Read the whole notice, then find the notice number
Every IRS notice has a code in the upper-right corner, usually starting with CP or LT (for example, CP14, CP504, or LT11). That code tells you exactly what stage you are at. A CP14 is a first bill. An LT11 or Letter 1058 is a final notice of intent to levy and carries a short, strict deadline to request a hearing. The difference matters enormously, so identify the code before you do anything else.
Read the entire notice, not just the amount. It states what the IRS believes changed, the tax year involved, the balance or adjustment, and—critically—any response deadline.
2. Confirm it is really from the IRS
The IRS initiates contact by mail, not by phone, email, or text. If someone calls demanding immediate payment by gift card or wire transfer, that is a scam, not the IRS. A genuine notice references a specific tax year and amount, and you can verify it by logging into your account at IRS.gov or by calling the number printed on the notice itself.
3. Check the notice against your records
The IRS is not always right. Notices are frequently generated by automated matching—say, a 1099 that did not line up with your return—and that matching can miss context. Compare the notice to your filed return and your own records before you assume the balance is correct. If the numbers do not match, you may simply need to respond with documentation rather than pay.
4. Note every deadline
This is the step people skip, and it is the most expensive one to miss. Many notices give you a window—often 30 days—to respond, dispute, or request a hearing. Some of those windows, once closed, cannot be reopened, and they carry rights you lose by waiting, such as the right to a Collection Due Process hearing. Put the deadline on your calendar the day you open the notice.
5. Decide how to respond
Broadly, you have three options:
- Agree and resolve. If the notice is correct and you can pay, pay it or set up a payment arrangement.
- Agree you owe but cannot pay in full. Options such as an installment agreement, currently-not-collectible status, or an offer in compromise may apply depending on your finances.
- Disagree. Respond in writing with supporting documentation by the deadline, and preserve any appeal rights the notice grants.
6. Do not ignore it
Ignoring a notice does not make a balance disappear. It moves your case further down the collection sequence—from reminders, to a final notice, to enforced collection such as wage garnishment, a bank levy, or a tax lien. Every step forward removes options that were available a step earlier.
When to bring in help
You do not need representation for every notice. A simple math adjustment you agree with can be handled on your own. But if you are facing a final notice, an audit, several years of unfiled returns, or a balance you cannot pay, professional representation usually preserves more options than going it alone—and can take over the correspondence and deadlines so you are not managing them under stress.
If you have received a notice you are not sure how to handle, contact our office for a consultation. Bring the notice with you; the code in the corner tells us most of what we need to know to help.
This article is general information, not legal or tax advice. Tax rules change and every situation is different. For guidance on your specific circumstances, consult a qualified tax professional.