Received an IRS Notice? Here's What to Do
Don't panic. Most IRS notices are routine. Learn what common notices mean, how to respond, and when to seek professional help.
Don't Panic — Read Carefully
Receiving a letter from the IRS can be nerve-wracking, but most notices are routine and don't mean you're in trouble. The IRS sends millions of notices each year for reasons ranging from minor math corrections to requests for additional information.
Common Types of IRS Notices
CP2000 — Income Discrepancy
The IRS received information (from your employer or bank) that doesn't match what you reported. This is one of the most common notices and usually requires a simple explanation or correction.
CP14 — Balance Due
You owe additional taxes. The notice will show the amount, including any interest or penalties. You can pay in full, set up a payment plan, or dispute the amount if you disagree.
CP501/CP503/CP504 — Collection Notices
These are escalating reminders about unpaid taxes. CP504 is the final notice before the IRS may take collection action. Don't ignore these.
Letter 525 — Audit Notification
The IRS is examining your return. This doesn't mean you did anything wrong — some returns are selected randomly. Respond promptly and consider getting professional representation.
Steps to Take
- Read the entire notice carefully — understand what the IRS is asking
- Note the deadline — most notices have a response due date
- Don't ignore it — ignoring a notice always makes things worse
- Gather relevant documents — have your tax return and supporting documents ready
- Respond in writing if needed — keep copies of everything you send
- Consider professional help — especially for audit notices or large balances
When to Get Professional Help
While simple notices (like math corrections) can often be handled on your own, you should consider professional help if:
- You're being audited
- You owe a significant amount
- You don't understand what the notice is asking
- The notice involves penalties
- You've received multiple notices
Our IRS Notice Help service includes notice review, response preparation, and direct communication with the IRS on your behalf. Contact us and we'll review your notice within 24 hours.