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.