When Should You Hire A CPA? 6 Signs It's Time

The short answer: if your taxes have gotten more complicated than a W-2 and a standard deduction, or your business has grown past the "I'll figure it out myself" stage, it's time to hire a CPA. That includes starting a business, taking on self-employment or rental income, getting an IRS letter, going through a major life change, or realizing your books are a mess. A CPA does more than file a return; a good one saves you money and keeps you out of trouble year-round.

Most people don't think about hiring a CPA until tax season is already stressing them out. By then you're reacting instead of planning, and reacting is usually the more expensive option. Here are 6 signs it's time to bring in a CPA, and what that relationship actually looks like once you do.

Do You Need A CPA, Or Will Tax Software Work?

Tax software is built to fill in boxes based on what you tell it. A Certified Public Accountant is licensed by the state, tested extensively on tax law and accounting standards through exams recognized by the American Institute of CPAs (AICPA), and trained to look at your full financial picture, not just last year's numbers. A CPA can spot deductions you didn't know existed, flag a business structure that's costing you money, and give you a plan before decisions get made instead of a form after they're finalized.

That distinction matters most in the 6 situations below.

Sign 1: You Started A Business Or Changed Its Structure

Choosing between a sole proprietorship, LLC, or S-corp affects how much you pay in taxes, how much liability protection you have, and how complicated your filing becomes with both the IRS and the Idaho State Tax Commission. Getting this wrong at the start is expensive to fix later. Our business formation services walk you through the tradeoffs before you file paperwork with the state, not after.

Sign 2: You Have Self-Employment, Freelance, Or Rental Income

The moment income stops coming from a single W-2, your tax situation changes. Quarterly estimated payments, self-employment tax, depreciation on rental property, and business expense tracking all become your responsibility. This is exactly where DIY software tends to miss deductions or, worse, trigger errors that catch the IRS's attention.

Sign 3: You Received An IRS Letter Or Are Facing An Audit

An IRS notice does not automatically mean something is wrong, but it does mean you need someone who knows how to respond correctly and on time. A CPA can read the letter, tell you what it actually means, and provide IRS representation if it comes to that. Handling it yourself, or ignoring it, is how a small issue turns into a bigger one.

Sign 4: You Went Through A Major Life Change

Divorce, inheritance, selling a home, a new baby, or the death of a family member all carry tax consequences most people don't see coming. These are one-time events with permanent tax implications, and they're exactly the kind of situation where a generic software prompt won't ask the right follow-up questions. A CPA will.

Sign 5: Your Bookkeeping Is A Mess Or Doesn't Exist

If you're a business owner and you couldn't tell someone your current profit and loss without digging through a shoebox of receipts, that's a sign. Clean, current books are what let a CPA actually plan ahead for you instead of just reconstructing your year every April. Our bookkeeping and QuickBooks support is usually the fastest fix here, and often the first thing we help a new client set up.

Sign 6: You're Making Decisions With Tax Consequences You Haven't Thought Through

Buying a second property, taking money out of a retirement account early, expanding a business into a new state, selling a business. Each of these carries a tax bill that's much easier to plan around before the decision than after. If you're about to make a financial move and you're not sure what it will cost you at tax time, that question alone is a sign you need a CPA in the conversation now, not next April.

What A CPA Relationship Actually Looks Like

Hiring a CPA does not mean an expensive retainer or losing control of your finances. For most individuals and small businesses, it means a point of contact who prepares your return, provides year-round tax planning, and flags issues before they become expensive. At Poston Denney & Killpack, that has meant the same thing since 1984: personal attention from a CPA who actually knows your situation, not a rotating cast of junior staff.

Frequently Asked Questions

Do I need a CPA or can I just use tax software?

Tax software works well if your income is a single W-2 and you take the standard deduction. Once you add self-employment income, rental property, a business, or a major life change, a CPA is worth the cost because the deductions and rules involved are easy to miss on your own.

How much does it cost to hire a CPA?

Cost depends on the complexity of your return and the services you need, from a simple tax filing to ongoing bookkeeping and business advisory work. Poston Denney & Killpack has built its reputation in Idaho Falls partly on offering affordable rates without cutting corners on service.

What is the difference between a CPA and a regular accountant or tax preparer?

A CPA is licensed by the state and has passed rigorous exams and continuing education requirements. A general tax preparer or bookkeeper may not carry that license, which matters if you ever need someone to represent you in front of the IRS or advise you on complex tax strategy.

When during the year should I hire a CPA, not just at tax time?

The earlier the better, especially if you are starting a business, changing its structure, or going through a major life event. Waiting until tax season means a CPA is reacting to decisions you already made instead of helping you plan them.

Can a CPA help if I already got a letter from the IRS?

Yes. A CPA can read the notice, explain what it actually means, and communicate with the IRS on your behalf. Responding quickly and correctly is important, so this is not something to sit on.

Do I need a CPA if I only have a small side business?

Even a small side business creates self-employment tax obligations and often quarterly estimated payments. A CPA can set up simple, sustainable habits early so the business stays organized as it grows, instead of untangling a mess later.

Ready To Talk To A CPA?

If any of these 6 signs sound familiar, it's a good time to have a conversation before your next filing deadline sneaks up on you. Poston Denney & Killpack has been serving individuals and businesses in Idaho Falls since 1984, with partners Bruce Denney, CPA, CVA, and Kevin Killpack, CPA, providing the kind of personal attention a growing business or a complicated tax year needs. Call (208) 522-0886 or contact our office to get started.

IRS Installment Agreement: What It Is, How It Works, And Whether It's A Good Idea

An IRS installment agreement is a monthly payment plan that lets you pay off tax debt over time instead of all at once. Most individuals who owe $50,000 or less and have filed all required returns can set one up online in minutes. It will not stop interest from accruing, but it does stop the IRS from pursuing liens, levies, or wage garnishment while the plan is active. Whether it is a good idea depends on how much you owe, how fast you can pay, and whether your situation is simple enough to handle yourself.

If you have opened a letter from the IRS and felt your stomach drop, you are not alone. Tax debt is more common than most people think, and the IRS actually prefers to work out a payment plan rather than chase you through collections. Here is what an installment agreement really involves, what it costs in 2026, and how to decide if it is the right move.

What Is an IRS Installment Agreement?

An installment agreement is a formal arrangement with the IRS to pay a tax balance over time instead of in one lump sum. The authority for these agreements comes from Internal Revenue Code Section 6159, and the IRS has offered some version of this program for decades. In practice, it means you agree to a monthly payment amount, and as long as you keep paying, the IRS generally will not file a lien, levy your bank account, or garnish your wages.

It is not a settlement. You still owe the full amount, plus interest and penalties that continue to accrue until the balance is paid off. Think of it as buying breathing room, not forgiveness.

The Types of IRS Payment Plans

The IRS offers a few different structures depending on how much you owe and how quickly you can pay:

• Pay in full: No setup fee, no future interest once paid, and you can do it online, by phone, or by mail.
• Short-term payment plan: For balances under $100,000 in combined tax, penalties, and interest, paid within 180 days. No setup fee, but interest and penalties keep accruing until it is paid off.
• Long-term payment plan (the traditional "installment agreement"): For balances of $50,000 or less, paid monthly. This is what most people mean when they say "IRS installment agreement."

Within the long-term option, you can choose Direct Debit (automatic payments pulled from your bank account) or a non-Direct Debit plan where you pay manually each month. Direct Debit costs less to set up and is generally the safer choice, since missed manual payments are one of the most common reasons agreements default.

One more thing worth knowing: for years, individuals with lower balances could qualify for what was called a Streamlined Installment Agreement. In March 2025, the IRS replaced that name with the Simple Payment Plan, which now allows qualifying individuals with $50,000 or less in assessed tax, penalties, and interest to pay through the remaining collection period, generally up to 10 years from assessment. If you see "streamlined installment agreement" referenced elsewhere, know that it is the same basic idea under a new name and, in some cases, slightly more generous terms.

What Does an IRS Installment Agreement Cost in 2026?

Fees depend on how you apply and which payment method you choose, based on current IRS.gov figures:

• Direct Debit, applied online: $29 setup fee
• Direct Debit, applied by phone, mail, or in person: $107 setup fee
• Non-Direct Debit, applied online: $69 setup fee
• Non-Direct Debit, applied by phone, mail, or in person: $178 setup fee
• Low-income taxpayers: setup fee waived for Direct Debit, or reduced to $43 for non-Direct Debit (may be reimbursed once the plan is complete)

On top of the setup fee, interest and any applicable failure-to-pay penalties continue to accrue until the balance is paid in full. That is the part people are often surprised by. An installment agreement stops aggressive collection, not the meter running on what you owe.

How to Apply

Individuals who owe $50,000 or less and have filed all required returns can typically apply online through their IRS Online Account. If you do not qualify online or prefer not to, you can apply by phone, by mail, or in person using Form 9465, Installment Agreement Request. Some situations, such as balances over $50,000 or unfiled returns, will require a more detailed financial disclosure using Form 433-F before the IRS approves a plan.

What Happens if You Miss a Payment

Defaulting on an installment agreement means the IRS can resume collection activity, including liens and levies, and may charge a reinstatement fee to get the plan back on track. If a payment is going to be late or you cannot make the amount you agreed to, contact the IRS before you miss it. Plans can often be revised online, including changing your monthly amount or due date, which is a much better outcome than letting it lapse.

Is an IRS Installment Agreement a Good Idea?

For a lot of people, yes. It stops the IRS from taking aggressive action, gives you a predictable monthly number to plan around, and is far less disruptive than a lien or levy. It makes the most sense when:

• You have filed all required returns and just cannot pay the full balance
• Your balance is under $50,000 and you can reasonably commit to a monthly payment
• You want to avoid liens, levies, or wage garnishment while you catch up

Where it gets more complicated is when you owe more than $50,000, have unfiled returns, have already defaulted on a prior agreement, or think you might qualify for a partial payment installment agreement or an offer in compromise instead. Those situations involve financial disclosure and IRS judgment calls that are worth having someone experienced walk through with you before you apply, since the wrong plan type or a rejected application can cost you time you do not have.

This is where IRS problem resolution becomes its own specialty rather than a box to check. Bruce Denney, CPA and CVA, has spent more than 20 years handling exactly these situations for clients across Idaho Falls, and knows which plan type actually fits a given balance versus which one just sounds right on paper.

A Note for Idaho Taxpayers

If you owe both the IRS and the state of Idaho, know that these are two completely separate processes. The Idaho State Tax Commission runs its own payment plan system through the Taxpayer Access Point (TAP), and setting up an IRS installment agreement does nothing to address an Idaho balance, or vice versa. Idaho's plans have their own rules, including different timelines and eligibility requirements than the IRS. If you are dealing with both at once, it is worth having someone look at the whole picture rather than tackling them one at a time on your own.

Poston Denney & Killpack has been sorting out situations like this for Idaho Falls clients since 1984. If you are behind on federal or Idaho taxes and want a straight answer on your options, our tax planning team can walk through what an installment agreement, a partial payment plan, or another option would actually look like for your situation. For more complex cases involving IRS notices or ongoing collection issues, our IRS representation services handle the negotiation directly so you are not doing it alone. And if you are just trying to get your tax prep caught up before any of this matters, our tax preparation services are the place to start.

Frequently Asked Questions

How Long Can an IRS Installment Agreement Last?

Long-term individual plans, now called Simple Payment Plans, generally allow payments through the IRS's remaining collection period, which can run up to 10 years from the date the tax was assessed. Older guidance references a 72-month standard, so the exact length depends on your balance and when it was assessed.

Does the IRS Still Call It a "Streamlined Installment Agreement"?

No, not for individuals. In March 2025, the IRS replaced the individual Streamlined Installment Agreement with the Simple Payment Plan. The core idea, a lower-disclosure payment plan for balances of $50,000 or less, is the same, but the name and some terms have changed.

Will an Installment Agreement Stop IRS Collection Actions Like Liens or Levies?

Generally, yes. Once a payment plan is approved, the IRS typically will not pursue enforced collection, such as levies, while the plan is in effect and payments are being made. It does not erase a lien that has already been filed.

Does Interest Keep Accruing While I'm on a Payment Plan?

Yes. Interest and any applicable penalties continue to add to your balance until it is paid in full. An installment agreement changes how you pay, not how much interest accrues along the way.

What Happens if I Miss a Payment on My Installment Agreement?

Missing a payment can put your agreement into default, which allows the IRS to resume collection efforts and may add a reinstatement fee. Contact the IRS as soon as you know a payment will be late, since plans can often be revised before they default.

Is an IRS Installment Agreement Separate From an Idaho State Tax Commission Payment Plan?

Yes. The IRS and the Idaho State Tax Commission run completely separate payment plan systems. If you owe both, you need to apply with each agency individually.

IRS Audit Statue Of Limitations: How Long Does The IRS Have To Come After You?

The IRS generally has 3 years from the date you file to audit your tax return. That window stretches to 6 years if you leave off more than 25% of your gross income, and there is no time limit at all if you never file a return or file a fraudulent one. Idaho has its own 3-year audit window for state tax returns, with a similar set of exceptions. Knowing which clock applies to your situation tells you exactly how long to keep your records and when you are actually in the clear.

If you have ever wondered whether an old tax return could still come back to bite you, you are not alone. The IRS audit statute of limitations is one of the most misunderstood parts of the tax code, partly because there is not just 1 rule. There are 3, and which 1 applies to you depends on what was on your return (or whether you filed one at all).

The 3-Year Rule: How Long The IRS Usually Has To Audit You

For the vast majority of taxpayers, the IRS has 3 years from the date you file your return, or the due date of the return, whichever is later, to open an audit and assess additional tax. The IRS calls this the Assessment Statute Expiration Date, or ASED.

• If you filed your 2022 return on the April deadline, the IRS generally has until that same date in 2026 to audit it.
• If you filed late with no extension, the 3-year clock starts on the date you actually filed, not the original due date.
• If you got an extension and filed by the extended deadline, the clock still starts from the due date, not your early or on-time filing date within the extension window.

Once that 3-year window closes, the IRS generally cannot open a new audit or assess more tax on that return. This is why keeping 3 years of tax records is the baseline every CPA recommends, though there are good reasons to hold onto some documents longer, covered below.

When The IRS Gets 6 Years Instead Of 3

The 3-year rule doubles to 6 years if you omit more than 25% of your gross income from a return. This does not have to be intentional. If you earned $200,000 and only reported $140,000, for example, that 30% gap is enough to trigger the extended window even if the omission was a genuine mistake.

The 6-year rule also applies if you failed to report more than $5,000 in gross income from foreign financial assets, such as interest from an overseas bank account. This lines up with the reporting period for FBAR (foreign bank account report) filings, which carry their own steep penalties for noncompliance.

Note that overstating deductions or credits, as opposed to omitting income, does not trigger the 6-year rule. That distinction has actually been tested in court, and the extended statute only applies to unreported income, not inflated write-offs.

When There Is No Time Limit At All

In 3 specific situations, the statute of limitations never starts running, which means the IRS can audit you at any time, with no expiration date:

1. You never filed a return. No filing means no clock. The IRS can assess tax on unfiled years indefinitely.
2. You filed a false or fraudulent return with intent to evade tax. Fraud removes the time limit entirely.
3. You did not sign your return. An unsigned return is not considered valid by the IRS, so the 3-year period never begins.

If the IRS never received a valid, signed return for a given year, that year effectively stays open forever. This is one of the clearest reasons to always file, even if you cannot pay what you owe. An imperfect return that starts the clock is almost always better than no return at all.

What Actually Starts The Clock

A lot of confusion around this topic comes down to 1 question: which date counts as day 1? The rule is the later of 2 dates: the original due date of the return, or the date you actually filed it.

• File on time (or early): the clock starts on the due date.
• File with an approved extension, by the extended deadline: the clock starts on the original due date, not the extended one.
• File late with no extension: the clock starts on the date you actually filed.

This matters most for people who file late. A return filed 2 years after the deadline does not give the IRS 5 years of runway (3 plus the 2-year delay); it gives them 3 years from the actual, late filing date.

Can The Statute Of Limitations Be Extended?

Yes, but only with your agreement. If an audit is underway and the IRS needs more time to finish reviewing your return before the statute expires, an auditor may ask you to sign Form 872, Consent to Extend the Time to Assess Tax. You are allowed to negotiate the length of the extension, limit it to specific issues, or decline to sign altogether. Refusing does not stop the audit, but it does force the IRS to work within whatever time remains on the original 3-year clock, which sometimes prompts a faster resolution.

This is exactly the kind of decision where having a CPA in your corner during the audit, rather than navigating it alone, makes a real difference. Our IRS representation services exist for exactly this situation, and our tax planning team can also help you get ahead of issues before they trigger a longer look-back period in the first place.

Idaho's Audit Statute Of Limitations: What Is Different At The State Level

Most articles on this topic stop at the federal rules and never mention that Idaho runs its own, separate clock. For Idaho Falls taxpayers and business owners, both timelines matter.

• Idaho income tax: The Idaho State Tax Commission generally has 3 years from the later of the filing date or due date to issue a notice of deficiency, mirroring the federal rule.
• Federal audit adjustments reopen the Idaho clock: Under Idaho Code 63-3068(f), if a federal audit changes your taxable income, Idaho's period to assess additional state tax reopens and does not expire until 1 year after you report that federal change to the state, or 3 years from your original filing date, whichever is later. In other words, an IRS audit can indirectly extend your exposure at the state level.
• Idaho sales and use tax: The standard statute is also 3 years from the filing or due date, but it stretches to 7 years if no sales tax return was ever filed for the period in question.

If you have been through a federal audit that resulted in changes to your reported income, do not assume the matter is closed once the IRS finishes. Idaho may still have an open window to review your state return as a result. A tax preparation review can catch these overlaps before they become a second audit.

How Long You Should Actually Keep Your Tax Records

Given all of the above, here is a practical, no-guesswork breakdown for how long to hang onto your documents:

• 3 years: The baseline for most individual and business returns, in line with the standard federal and Idaho assessment periods.
• 6 years: If you have income sources that could plausibly be underreported by more than 25%, such as self-employment income, rental income, or investment gains, or if you hold foreign financial accounts.
• 7 years: Records related to a bad debt deduction or a loss from worthless securities.
• Indefinitely: Any year you did not file a return, filed a fraudulent return, or never signed a return. Also keep records tied to property (like your home or investments) for as long as you own the asset, plus the applicable statute period after you sell it.

Frequently Asked Questions

How Long Does The IRS Have To Audit You After You File?

The IRS generally has 3 years from the date you file your return, or its due date, whichever is later. This extends to 6 years if you omit more than 25% of your gross income, and there is no limit if you never filed or filed fraudulently.

Can The IRS Audit You After 7 Years?

In most cases, no. The standard window is 3 years, extended to 6 for substantial income omissions. Beyond 7 years, an audit is unlikely unless the return involved fraud or was never filed, in which case there is no expiration at all.

Does Filing An Extension Change The Audit Statute Of Limitations?

No. Filing with an extension and submitting your return by the extended deadline still starts the 3-year clock on the original due date, not the extension date.

What Happens If I Never Filed A Tax Return For A Past Year?

The statute of limitations never starts running for a year with no filed return, which means the IRS can assess tax for that year at any time. Filing a late return, even years after the fact, starts the clock and limits your long-term exposure.

Is Idaho's Audit Statute Of Limitations The Same As The IRS's?

They are similar but not identical. Idaho generally follows a 3-year rule for income tax, but a federal audit that changes your reported income can reopen Idaho's assessment window under Idaho Code 63-3068(f), and unfiled sales tax returns carry a 7-year statute rather than 3.

Should I Sign An Extension If The IRS Asks Me To During An Audit?

It depends on the situation. You are allowed to negotiate the terms, limit the scope, or decline. This is a decision worth making with a CPA who can weigh what is actually at stake in your specific audit before you sign anything.

How Long Should I Keep My Tax Records?

Keep records for at least 3 years for most returns, 6 years if you have income that could be underreported by more than 25% or foreign accounts, 7 years for bad debt or worthless securities claims, and indefinitely for any year you did not file or filed fraudulently.

Worried About An Audit Or An Old Return? Let's Look At It Together

Statute of limitations questions rarely come up in the abstract. Usually they come up because you got a letter, you are worried about an old return, or you are not sure how long to keep a box of records taking up space in your closet. Poston Denney & Killpack has been helping Idaho Falls individuals and businesses sort through exactly these situations since 1984, and we would rather look at your specific numbers than guess. If you are facing an audit or just want a second set of eyes on your filing history, call us at (208) 522-0886 or reach out through our IRS representation page to schedule a conversation.

Got An IRS Letter? Here's What To Do First (And What Not To Do)

TLDR: If you received a letter from the IRS, do not panic and do not ignore it. Read it carefully, find the notice or letter number in the top right corner, and check the response deadline. Most letters deal with a routine issue like a math correction, a missing form, or a balance due, not an audit. If the letter involves an audit, a large balance, identity verification, or wording you don't fully understand, call a CPA before you respond.

Why The IRS Sent You A Letter In The First Place

An IRS letter in the mailbox feels like bad news before you even open it, but most of them aren't. The IRS sends letters and notices for dozens of routine reasons: a math error on your return, income that doesn't match what an employer reported, a request to verify your identity, or a simple balance due. Every letter has a notice or letter number printed in the upper right corner, things like CP2000, CP14, or 5071C, and that code tells you exactly why the IRS is contacting you.

• CP2000: the income or deductions on your return don't match what a third party (like an employer or bank) reported
• CP14: you have a balance due on your account
• 5071C: the IRS needs to verify your identity before processing your return
• LT11: a more serious collection notice, often a final warning before a levy

You can look up any notice number directly on the IRS's own notice and letter lookup page to see exactly what it means before you do anything else.

What To Do First When You Get An IRS Letter

• Read the whole letter before reacting. The notice number, tax year, and reason for contact are usually on the first page.
• Check the response deadline. Most IRS letters give you 10 to 30 days to respond, and that date is printed directly on the notice.
• Compare it to your tax return. If the letter references a correction, pull your copy of that year's return and check the numbers side by side.
• Note whether it's informational or actionable. Some letters just tell you something changed. Others require a specific response, a payment, or documentation by the deadline.
• Keep the original and make copies. You'll want the letter on hand if you call the IRS, a CPA, or both.

What Not To Do When You Get An IRS Letter

A lot of people assume any letter from the IRS means they're being audited or that they need to pay immediately to avoid getting in trouble. That's not accurate, and acting on that assumption is how simple notices turn into bigger problems.

• Don't ignore it. Unpaid balances keep accruing interest and penalties, and missed deadlines can forfeit your right to dispute a notice you don't agree with.
• Don't assume the IRS is automatically right. Notices are frequently based on incomplete information. If something looks off, you're allowed to push back.
• Don't call a number from a text or email claiming to be the IRS. The IRS makes first contact by mail, not by phone, text, email, or social media. Any unexpected call or message demanding immediate payment is almost always a scam.
• Don't send payment or personal information before verifying the letter is legitimate. See the next section for how to check.

How To Tell If An IRS Letter Is Actually Legit

Real IRS letters share a few consistent features: they arrive by mail, include a notice or letter number in the top corner, reference a specific tax year, and never demand payment through gift cards, wire transfers, or cryptocurrency. If a letter pressures you to pay immediately using an unusual payment method, threatens arrest, or arrived by text or email instead of mail, it's a scam. When in doubt, look up the notice number on IRS.gov's official guidance page or call your CPA to verify before responding to anything.

When It's Time To Call A CPA Instead Of Handling It Alone

This is exactly where a lot of taxpayers get themselves into more trouble than they started with. IRS auditors are trained to gather more information than you're actually required to provide, and going it alone to avoid a representation fee often ends up costing more once a deficiency bill shows up. If your letter is an audit notice, our IRS audit representation service means you forward the notice to us and we handle the process from there, so you're not taking time off work or losing sleep over paperwork. Bruce Denney, CPA and CVA, and Kevin Killpack, CPA, have represented Idaho Falls taxpayers through IRS audits since the firm opened in 1984. If the notice involves a spouse or ex-spouse's filings instead, our innocent spouse relief services may be the better fit.

Frequently Asked Questions

What does it mean if I get a letter from the IRS?
Most IRS letters address a routine issue such as a math error, a missing form, identity verification, or a balance due. It does not automatically mean you're being audited. Each letter has a notice or letter number, such as CP2000 or CP14, in the top right corner that identifies the exact reason for contact.

How long do I have to respond to an IRS letter?
Most IRS letters give taxpayers 10 to 30 days to respond, and the specific deadline is printed directly on the notice. Missing that date can add penalties and interest or limit your right to dispute the notice, so check the date the moment the letter arrives.

Is it normal for the IRS to contact me by mail?
Yes. The IRS almost always makes first contact by mail, not by phone, email, text, or social media. If you receive a call, text, or email claiming to be the IRS demanding immediate payment, treat it as a scam, even if the caller ID looks official.

What if I don't understand why I received the letter?
Look up the notice or letter number on IRS.gov's notice lookup page, which explains what each code means in plain language. If it's still unclear after that, or the letter references an audit, a large balance, or identity verification, contact a CPA before responding on your own.

Do I need to hire a CPA for every IRS letter?
No. A simple notice about a math correction or a small balance can often be handled by following the instructions on the letter itself. A CPA becomes worth involving when the letter involves an audit, a large balance, identity theft, or wording you don't fully understand, since a wrong response can create a bigger problem than the original letter.

What happens if I ignore an IRS letter?
Ignoring an IRS letter is one of the costliest mistakes a taxpayer can make. Unpaid balances continue to accrue interest and penalties, and unresolved audits or notices can escalate to liens, levies, or wage garnishment. Even if you disagree with the letter, responding by the deadline preserves your right to dispute it.

Got A Letter You're Not Sure About?

If an IRS letter landed in your mailbox and you're not sure whether it's routine or something bigger, don't sit on it until the deadline. Call Poston Denney & Killpack at (208) 522-0886 and we'll help you figure out exactly what it means and what to do next.