An IRS envelope raises the pulse of even the most organised person. Before anything else: the majority of notices are routine, many are resolved with a single letter, and a good number are simply wrong. Take a breath and read it properly.

First, do not ignore it

Nearly every notice carries a response deadline — often 30 or 60 days. Responding within that window usually preserves options, including the right to dispute. Letting it lapse tends to close doors and lets interest and penalties continue.

Second, find the notice number

Look at the upper or lower right corner for something like CP2000 or LT11. That code tells us precisely what kind of notice it is, and knowing it changes the whole conversation. Some common ones:

  • CP2000 — income reported to the IRS by a third party does not match your return. Very common, and frequently resolved by explaining a figure that was reported correctly but recorded in an unexpected place.
  • CP14 — a balance is due. The first notice in the collection sequence.
  • CP501 / CP503 / CP504 — escalating reminders about that balance. CP504 is serious and signals intent to levy.
  • CP05 — your return is under review and a refund is being held. Often no action is needed beyond waiting.
  • Letter 5071C — identity verification. The IRS wants to confirm you filed the return before processing it.

How to tell a scam from the real thing

The IRS initiates contact by mail. It does not open with a phone call, and it never opens with a text message, an email or a social media message. It will not demand payment by gift card, wire transfer or cryptocurrency, and it will not threaten immediate arrest. Any of those signals a scam. A genuine notice references a specific tax year and form, gives a notice number, and explains your appeal rights. When in doubt, bring it to us before you respond to anyone.

Third, check the notice against your records

A CP2000 in particular proposes a change — it is not a bill and not a final determination. Pull the return for that year and compare line by line. In our experience the discrepancy usually turns out to be one of:

  • A form that arrived after the return was filed
  • Investment sale proceeds reported without the cost basis, making a modest gain look enormous
  • Income reported under a spouse's Social Security number
  • A duplicate — the same income reported twice by two payers
  • An amount that was reported, correctly, on a different schedule than the matching system expected

Fourth, respond in writing — and keep proof

If you agree, follow the instructions and pay or arrange a payment plan. If you disagree, say so in writing within the deadline and attach documentation supporting your position. Send it by certified mail with return receipt, or through the method the notice specifies, and keep a complete copy of everything you send. Proof of timely response matters if the case moves along.

If you cannot pay

Options exist, and they are more accessible than most people assume — instalment agreements, and in some circumstances other relief. What does not work is silence: enforcement escalates on its own schedule whether or not anyone is reading the mail.

When to bring us in

Straight away, if you would rather not do this alone. We can review the notice, tell you plainly what it means, prepare the response, and — with authorisation on file — correspond with the IRS on your behalf so the letters come to us instead of your kitchen table. Bring the notice, the return for that year, and any documents it refers to.