Getting a letter from the IRS can be stressful, but it doesn’t necessarily mean you’ve done anything wrong. The IRS issues millions of notices each year for a variety of reasons, ranging from simple corrections to audit notifications. Knowing how to respond—and when to seek professional help—can prevent the situation from escalating.
Common IRS Notices
- CP2000: A proposed change notice usually involving income discrepancies
- CP504: Urgent notice of unpaid taxes with potential collection actions
- LT11: Final notice before the IRS intends to levy your assets
- Notice of Deficiency: Gives you 90 days to respond before the IRS assesses additional tax
Steps to Take When You Receive a Notice
- Read Carefully: Understand what the IRS is asking for and what year or issue it involves.
- Do Not Ignore It: Deadlines matter. Ignoring notices can lead to penalties, interest, and collections.
- Check for Errors: Sometimes notices are based on incorrect or outdated information. Review your records before agreeing to any proposed changes.
- Gather Documentation: If the IRS claims income was omitted, gather W-2s, 1099s, and other relevant documents to verify your position.
- Respond in Writing: If required, submit a written response with documentation supporting your position.
- Work with a Professional: A CPA or tax attorney can correspond with the IRS on your behalf, protect your rights, and avoid miscommunication.
Have you received a tax notice? Let our office review it and help you respond. Contact us today.