An envelope from the Internal Revenue Service can ruin a good afternoon, but most letters are routine. This guide on what to do with an IRS notice walks you through how to read the letter, confirm it is genuine and choose your next step.

Whether the notice asks for information, proposes a change or shows a balance due, the way to handle an IRS notice is the same: understand it, check it and respond on time.

Step one: read the notice and find its number

Every IRS notice or letter carries an identifier. According to the IRS, the CP or LTR number appears in the right corner of the letter. That code tells you exactly what type of notice you have.

Before anything else, note these details from the page:

• The notice number (for example, a CP or LTR code).
• The tax year and the type of tax involved.
• The due date for a response or payment, if there is one.
• The amount the IRS says you owe or the change it proposes.
• The phone number and mailing or upload instructions printed on the notice.

Then search for the notice number on the IRS page Understanding your IRS notice or letter. It explains what each notice means and what the IRS expects from you. Keep the original letter with your tax records.

Is the IRS notice real?

Scammers often pretend to be the IRS, so it is reasonable to double-check any IRS notice you receive. The IRS says it initiates most contacts through regular mail delivered by the U.S. Postal Service. A genuine letter will also point you to official channels, not to a random website or gift card.

Be suspicious if someone claiming to be the IRS:

• Demands immediate payment by gift card, prepaid debit card or wire transfer.
• Threatens to have the police or immigration officers arrest you.
• Insists you pay without giving you a chance to question or appeal the amount.

If the letter does not appear in the IRS notice search, or it simply looks wrong, the IRS recommends calling 800-829-1040 to confirm. Some notices can also be viewed in your IRS online account, which is a simple way to verify one.

Common IRS notice types and what they usually mean

There are many notice types. Two of the most common for individuals are summarized below, based on the IRS descriptions.

Notice	What it means	Typical next step
CP2000	Income or payment information from employers, banks or others does not match your return. The IRS proposes changes, which could raise, lower or not change your tax.	It is not a bill, but it may require a reply by the date on the notice, using the response form if one is included.
CP14	The IRS says you owe money on unpaid taxes.	Pay by the due date, or contact the IRS if you disagree or cannot pay the full amount.

If your IRS notice has a different number, the IRS search tool will describe it. Requests for more documents, identity checks and adjustment letters each have their own instructions.

Responding to an IRS notice: if you agree or disagree

If you agree

Take the action the notice requests. The IRS notes that you do not need to reply unless the notice specifically asks you to. If the IRS corrected your return and you agree, write the corrections on your personal copy and keep it.

For a CP2000, if you agree and have no other income, credits or expenses to report, you generally do not need to amend your return. If the notice is correct but you have other items to report, the IRS instructs you to file Form 1040-X and write “CP2000” at the top.

If you disagree

Follow the dispute instructions on the notice and include an explanation with copies of supporting documents, such as Forms W-2 or 1099, receipts or canceled checks. Never send originals. The IRS states that to guarantee your appeal rights, you should reply by the due date.

Keep a copy of everything you send in response to the IRS notice and a record of the date and method, whether you upload, fax or mail your response to the location shown on the notice.

What if you owe and cannot pay in full?

The IRS advises paying by the due date even if you cannot pay the whole amount, because that can reduce interest and penalty charges. Ignoring a balance usually leads to more notices and a larger bill.

Options the IRS describes include:

• A payment plan, including an installment agreement you can request online.
• A temporary delay of collection in cases of financial hardship.
• An offer in compromise, which in some situations settles the debt for less than the full amount.

Each option has its own eligibility rules, so review them carefully. If your address of record is in a federally declared disaster area, you may receive a CP14C notice with additional time to file and pay.

When to get professional help with an IRS notice

Some letters are simple. Others involve several tax years, a business or audit questions. In those cases, a second set of eyes can help you organize records and prepare a documented response.

Our IRS problem resolution and audit assistance service helps individuals and businesses review notices, gather documents and plan their reply. If the notice traces back to a return that was prepared incorrectly, our tax preparation services can help you review the return and, if needed, prepare an amendment. If you filed late under an extension, our earlier guide on filing after an extension may also be useful.

Keep in mind that only certain people can formally represent you before the IRS. Form 2848 is the IRS form used to authorize an individual who is eligible to practice before the IRS to represent you. If your problem with the IRS is not being resolved through normal channels, the Taxpayer Advocate Service, an independent organization within the IRS, may be able to help.

Frequently Asked Questions

Where do I find the notice number on an IRS letter?

The IRS says the CP or LTR number appears in the right corner of the letter. Search for that number on irs.gov to read what the notice means and what you need to do.

How can I tell if an IRS notice is real?

The IRS initiates most contacts by regular mail. It does not demand immediate payment by gift card, prepaid debit card or wire transfer, or threaten arrest. If a letter looks suspicious or does not appear in the IRS notice search, call 800-829-1040 to confirm.

Do I have to respond if I agree with the notice?

Take any action the notice requests. According to the IRS, you do not need to reply unless the notice specifically asks you to. Keep a copy of the notice with your records.

What if I owe money but cannot pay it all?

The IRS advises paying what you can by the due date to reduce interest and penalties. You can also look into a payment plan, a temporary collection delay for hardship, or an offer in compromise, each with its own requirements.

How can JCB Solutions help with an IRS notice?

JCB Solutions offers IRS problem resolution and audit assistance in English and Spanish. We can help you understand the notice, organize your documents and prepare a clear response before the due date.

General information: This article is general information, not personalized tax, legal or accounting advice. Tax rules change; confirm your situation with a professional before acting.