Letter from the IRS: what to do first, step by step

What should you look at first?

An IRS letter is built to be read, which is easy to forget when your stomach drops. Before anything else, find four things on the first page:

• The notice or letter number. The IRS prints it in the right corner of the letter, as a code such as CP2000, CP14 or LT11. It tells you what kind of letter this is, and it is the key to everything else.
• The date of the letter. Deadlines are tied to what is printed on the page, not to the day you opened the envelope.
• The response or payment date. When the IRS asks you to act, the letter gives a due date. The IRS says that to guarantee your appeal rights, you should reply by that date.
• The tax year and the amount. Which year is under discussion, and what the IRS believes changed or is owed.

The IRS sends letters for ordinary reasons: a balance due, a changed refund, a question about a return, an identity check, a correction to a return or a delay in processing. If you agree and the letter does not ask for a reply, the IRS says you only need to take the requested action. With those four details you can usually tell whether this is routine paperwork or something that deserves a professional this week.

How do you know the letter is really from the IRS?

The IRS says it normally makes first contact by U.S. mail. Scammers copy that format, so a short check is worth the time:

1. Search the notice number on the IRS page Understanding your IRS notice or letter. If the number does not appear or the letter looks suspicious, the IRS asks you to call 800-829-1040.
2. Check your IRS Online Account. The IRS suggests signing in to see whether the letter or notice is in your file.
3. Use contact details you found yourself on IRS.gov, not a phone number, link or code supplied by an unexpected message.

According to the IRS page How to know it's the IRS, a call, email or text is not from the agency if it is unexpected, rushes you, threatens you, asks for personal or financial information or demands payment now. The IRS emails and texts only when you opted in, and a social media direct message is never from the IRS. The IRS and its authorized private collection agencies never ask for payment with prepaid cards or gift cards.

If something looks fake, do not reply, click links or open attachments. The IRS explains how to report each type of contact on its Report phishing page; for email, the address is phishing@irs.gov.

Which IRS notices are common, and what do they mean?

The letter itself states what it is, so use this table for orientation, not diagnosis. Each line summarizes the IRS's own explanation page for that notice.

Two practical notes. A notice about a year you already paid is not unusual, because letters and payments cross in the mail; the IRS asks you to send proof of payment to the address on the notice. And an unanswered balance notice is usually followed by the next one in this sequence, each with stronger collection language.

Why does the response date matter so much?

Most of what a good response can achieve depends on being inside the window. A proposed change such as a CP2000 lets you state whether you agree or disagree and send supporting documents, and the IRS lets you ask for more time if you send that request through one of the reply options. A levy notice such as LT11 or Letter 1058 carries the right to a Collection Due Process hearing, and that right has its own deadline.

If you owe, the IRS says to pay by the due date even if you cannot pay the full amount, because it can reduce interest and penalty charges. If you cannot pay in full, the IRS offers payment plans, and you can apply online. Use only the methods listed on IRS.gov/payments.

Missing the window does not end the matter, but it can narrow the options left. That is the honest reason to open the envelope the day it arrives and to put the response date on your calendar right away.

What should you avoid doing?

• Do not ignore it. On a CP2000, the IRS says that if you do not reply or the discrepancy cannot be resolved, it may send another notice and a bill.
• Do not pay a request you have not verified. Confirm the balance in your Online Account or with the IRS, and pay only through official IRS payment options. Gift cards, prepaid cards and payment links sent by text are red flags.
• Do not accept numbers you have not checked. A proposed change is built from third-party forms that can be incomplete, duplicated or wrong. Compare them with your own records first.
• Do not send originals. The IRS asks for copies of documents. Keep proof of what you sent and when.
• Do not hire on a promise. Nobody can tell you how the IRS will decide a case before reading the file and the letter.

What can a representative do with Form 2848?

You have the right to represent yourself before the IRS. You can also sign Form 2848, Power of Attorney and Declaration of Representative, to authorize an individual eligible to practice before the IRS, such as a certified public accountant (CPA), an attorney or an enrolled agent. According to the IRS, that person can then:

• represent, advocate, negotiate and sign on your behalf for the matters and years you list;
• argue facts and the application of law;
• receive your tax information for those matters and, if you choose, copies of IRS notices.

The authorization is generally recorded on the IRS Centralized Authorization File, so IRS staff can confirm your permission before discussing your account with your representative. It stays in effect until you revoke it or the representative withdraws. It can be submitted online, by fax or by mail, or approved in your Online Account when the professional sends the request there. Signing it does not transfer your obligations: the IRS notes you still must meet them.

Before you sign, check credentials. The IRS page Choosing a tax professional links to its directory of preparers who hold professional credentials the IRS recognizes. If you have a low income or speak English as a second language, Low Income Taxpayer Clinics may be able to help, and the Taxpayer Advocate Service is an independent organization within the IRS.

Frequently asked questions

Sources

General information, not tax, legal or immigration advice for your situation. Figures and dates were checked on official sources on the date shown and can change; a licensed CPA has not yet reviewed this draft. MTroncone CPA is not affiliated with the IRS or any government agency.