Few things create more anxiety than seeing an envelope from the IRS in your mailbox. But before you panic, know this: most IRS letters are routine and can be resolved easily once you understand what they mean.
Here’s a simple breakdown of why the IRS sends letters, what they typically say, and how to respond calmly and correctly.
Step 1: Understand Why the IRS Sends Letters
The IRS sends notices or letters for a variety of reasons — not all of them bad. Some are just informational.
Common reasons include:
- To request additional information about your tax return
- To notify you of a balance due or refund adjustment
- To confirm identity for fraud prevention
- To inform you of processing delays or missing documents
- To explain changes the IRS made to your return
Each letter includes details about what’s being requested and how to respond.
Step 2: Don’t Ignore It
The worst thing you can do is ignore an IRS letter. Even if it’s a mistake, delays in responding can lead to penalties, added interest, or enforcement actions.
Take a deep breath, open the letter, and read it carefully. Most notices clearly state:
- The issue (e.g., missing W-2, math error, identity verification)
- The response deadline
- The steps you need to take next
Prompt action shows good faith and keeps small issues from snowballing into big ones.
Step 3: Identify the Type of Letter
Each IRS letter has a notice number in the top or bottom right corner (e.g., CP2000, CP14, LT11).
That number tells you exactly what the issue is.
Here are a few common examples:
- CP14: You owe taxes. The letter explains how much and how to pay.
- CP2000: The income reported by your employer or bank doesn’t match what you filed.
- CP75: The IRS needs proof for a tax credit you claimed (like the Earned Income Credit).
- LT11: Final notice before the IRS begins collection action.
- 4883C: The IRS wants to verify your identity before processing your return.
Once you know the letter type, you can look it up on irs.gov for full details.
Step 4: Gather Information Before Responding
Before replying, make sure you understand exactly what the IRS is asking.
You’ll need:
- The letter or notice itself
- A copy of your original tax return
- Any supporting documents (e.g., W-2s, 1099s, receipts)
If you agree with the IRS, follow the instructions to make payment or confirm changes.
If you disagree, you can dispute the notice — but be sure to include clear documentation.
Step 5: Respond Correctly and On Time
Always respond by the deadline listed in the letter, even if you need more time to gather information.
Most letters include a return address or fax number. You can usually reply by:
- Mail (include copies, never originals)
- Fax (for some notices)
- Online (via your IRS account if available)
Keep copies of everything you send and note the date you responded.
If you can’t pay the full amount owed, the IRS often allows payment plans or temporary hardship status.
Step 6: Contact the IRS (If Necessary)
If the letter isn’t clear or you believe it’s an error, you can contact the IRS directly.
Use the phone number listed on the notice — not the general IRS line — to reach the correct department.
Before calling:
- Have your letter, tax return, and Social Security number ready.
- Be patient — wait times can be long, especially during tax season.
In many cases, the representative can clarify or resolve your issue in a single call.
Step 7: Watch Out for Scams
Scammers often pose as the IRS to steal personal information.
Keep in mind:
- The IRS never initiates contact by phone, text, or email.
- Official IRS letters come through the U.S. Postal Service.
- Always double-check the notice number and sender address on irs.gov.
If something feels off, call the IRS directly or report the scam attempt.
Bonus Tip: Seek Professional Help When Needed
If your situation is complicated — like owing a large balance or facing an audit — it’s worth consulting a certified tax professional, CPA, or enrolled agent.
They can help you navigate the process, negotiate payments, or appeal IRS decisions.
Final Thoughts
Getting an IRS letter can be stressful, but it doesn’t have to be scary. Most notices are routine and can be handled with simple communication.
Read carefully, respond promptly, and stay organized. When you understand what the IRS is asking — and why — you’ll realize most tax issues are completely manageable.
Remember: staying calm and informed is your best defense.