Step 1 — Don't panic, and don't ignore it

IRS notices are not audits by default. The large majority are automated letters proposing a small change, asking for information, or confirming a balance. Ignoring a notice is the only response that consistently makes things worse — penalties and interest continue to accrue, and the IRS can eventually move to enforced collection (a lien or levy) without further notice to you.

Open the envelope the day it arrives. Every IRS notice has a response deadline printed on the first page, usually 30 days. Mark it on your calendar immediately.

Step 2 — Identify what you received

On the top right of the first page you will find a notice number (for example, CP2000, CP504, LT11, or CP14) and a tax year. That number tells you exactly what the letter is about:

• CP2000 — a proposed adjustment because income or payments on file do not match your return. This is not a bill yet; it is a proposal you can dispute.
• CP14 / CP501 / CP503 — a balance-due reminder. The amount is already assessed and accruing interest.
• CP504 — a final notice of intent to levy. This one is urgent; the IRS can move to collection after 30 days.
• LT11 / Letter 1058 — a final notice before levy and your right to a Collection Due Process hearing.
• CP75 / CP75A — an examination (audit) of specific credits or deductions, often the Earned Income Credit or education credit.
• Letter 2205 or 2509 — a correspondence audit requesting documentation for specific items on your return.

Step 3 — Compare it against your filed return

Pull the tax return and the documents for the year in question. Many CP2000 notices are caused by a simple mismatch — a 1099 that was issued under a misspelled name, a corrected form the IRS recorded twice, or income reported on the wrong schedule. If the IRS is right and you owe, paying promptly stops the penalty and interest clock. If the IRS is wrong, you will respond in writing with your documentation.

Step 4 — Respond in writing by the deadline

Always respond in writing, even if you agree, and keep a copy of everything you send. Use certified mail with a tracking number so you have proof of timely response. A few rules that protect you:

• Never send original documents — send copies. The IRS is not responsible for returning your originals.
• Include the notice number, tax year, and your Social Security number or EIN on every page you send.
• If you agree with the proposed change, sign and return the response form with payment or a payment plan request.
• If you disagree, write a clear, factual explanation and attach the documents that support your position. Do not volunteer information the notice did not ask for.
• If you need more time, call the number on the notice and request an extension before the deadline passes.

Step 5 — Know when to call a professional

Some notices you can handle yourself. Others carry real financial and legal risk, and what you say to the IRS can be used against you. Contact an Enrolled Agent before responding if any of the following apply:

• The notice involves a balance you cannot pay in full.
• You receive a collection notice (CP504, LT11, or any "final notice of intent to levy").
• The notice opens an audit of your return, or requests documents for specific deductions.
• You have unfiled returns for the year in question, or for prior years.
• The proposed change is large, or you genuinely are not sure whether you agree.
• You receive a notice from your state that references a federal adjustment.

An Enrolled Agent is federally licensed by the U.S. Treasury to represent taxpayers before the IRS. With a signed power of attorney (Form 2848), we can pull your IRS account transcripts, speak to the IRS on your behalf, negotiate a payment plan or offer in compromise, and respond to the notice — so you do not have to take that call alone.

Step 6 — Watch for scams

The IRS almost never initiates first contact by phone, email, text, or social media — and it never demands immediate payment by gift card, wire transfer, or prepaid debit card. A real IRS notice arrives by U.S. mail and includes your notice number and taxpayer rights. If you receive a threatening call claiming to be the IRS, hang up and report it. When in doubt, call the IRS directly at 1-800-829-1040 or forward the letter to us to verify.