How to Respond to an IRS Notice Without Panicking

Step-by-step guide to handling IRS notices calmly and correctly, from reading the notice to taking appropriate action.

  1. Read the entire notice twice. Don't skim the first paragraph and panic. Read every word of the notice, including the fine print. The IRS explains exactly what they want, why they're contacting you, and what you need to do. Most notices are about simple issues like math errors, missing forms, or requests for documentation.
  2. Identify the notice type and deadline. Look for the notice number (like CP14 or CP2000) at the top right corner. Find the response deadline, usually 30 days from the notice date. Write this deadline on your calendar immediately. Different notice types have different urgency levels — a CP14 is just a bill reminder, while a CP2000 proposes changes to your tax return.
  3. Gather your tax documents. Pull your tax return for the year in question, plus any supporting documents like W-2s, 1099s, receipts, or bank statements. Compare what the IRS says against what you actually filed. Often, the issue is a missing document or a number that doesn't match their records.
  4. Determine if you agree or disagree. If the IRS is right, pay the amount owed or set up a payment plan using the instructions in the notice. If you disagree, prepare your response with copies of supporting documents. Never send originals — always send copies and keep the originals for your records.
  5. Respond in writing by the deadline. Use the response form included with the notice, or write a clear letter explaining your position. Include copies of supporting documents, your Social Security number, and the tax year in question. Send everything via certified mail so you have proof of delivery. Keep copies of everything you send.
  6. Know when to get professional help. Contact a CPA or enrolled agent if the notice involves complex issues like business income, large amounts owed, or if you don't understand what the IRS is asking. Also get help if you receive multiple notices, face collection actions, or need to appeal their decision.