Receiving a letter from the IRS can be stressful. The moment you see that official envelope in your mailbox, your heart might skip a beat. But take a deep breath—there’s no need to panic. The IRS sends out millions of notices every year, and in most cases, these letters are just routine communications. They could be about a small correction on your tax return, an update on your tax account, or a request for additional information.
If you’ve received a notice from the IRS, follow these simple steps to handle the situation calmly and correctly.
- Don't Ignore It
- Stay Calm
- Read the Entire Notice Carefully
- Compare It to Your Tax Return
- Only Respond If Necessary
- Respond Promptly If Needed
- Avoid Unnecessary Calls to the IRS
- If Your IRS Letter Arrives Late
- Seek Professional Help If Needed
- Keep a Copy for Your Records
- Final Thoughts
- Frequently Asked Questions About IRS Notices
Don’t Ignore It
First things first—never ignore an IRS notice. Even if you believe there’s been a mistake, or you think it might not apply to you, always read it carefully. IRS letters contain important information about your taxes, and failing to respond when required could lead to bigger problems, including additional penalties or interest.
Stay Calm
It’s natural to feel anxious when you get a notice from the IRS, but most letters are straightforward and easy to resolve. Many taxpayers receive notices that only require a simple fix or no action at all. There’s no need to stress over the letter before you fully understand its content.
Read the Entire Notice Carefully
Take your time to read the entire letter, word for word. The notice will explain why you are being contacted, what the IRS wants from you, and what steps you should take next. Some letters are informational, meaning you don’t need to do anything at all, while others may require you to respond or make a payment.
Compare It to Your Tax Return
One of the most common reasons for receiving an IRS notice is a correction or adjustment to your tax return. Compare the information in the notice with the details on the tax return you originally filed. If the IRS made changes, check if you agree with them.
IRS notice states that you owe more taxes but you believe your tax return was correct, you have the right to dispute it. If you see an error on your return that matches what the IRS pointed out, then the notice is likely correct, and you may need to take action to resolve it.
Only Respond If Necessary
Not all IRS notices require a response. If the letter is purely informational and the IRS is just letting you know about an update, you may not need to do anything. However, if the notice specifically requests a reply or action, make sure you follow the instructions provided.
If the letter requires a payment or additional information, be sure to address it as soon as possible to avoid penalties or delays.
Respond Promptly If Needed
If the notice requires a response and you don’t agree with it, send a written explanation to the IRS. Be sure to include:
- A copy of the notice
- An explanation of why you disagree
- Copies of any supporting documents
Send your response to the address listed in the notice and allow at least 30 days for a reply. If the IRS needs more time to process your response, they will notify you.
Sometimes, the notice includes a deadline for responding. These deadlines usually exist to:
- Protect your right to appeal
- Ensure timely processing of your return
- Avoid penalties and interest
Avoid Unnecessary Calls to the IRS
While the IRS provides a phone number on their notices, calling them should be a last resort. Most notices contain all the information you need to handle the issue without making a phone call. If you do need to call, make sure to have both your tax return and the notice in front of you. This will help the IRS representative assist you more quickly.
If you need to provide documents over the phone, you may have to fax them. While fax machines aren’t as common as they used to be, you can use online fax services to send documents electronically.
If Your IRS Letter Arrives Late
If your notice arrives past the deadline stated in the letter, don’t ignore it. Contact the IRS immediately and explain that you received the notice late. This is especially common for taxpayers who live overseas and experience mail delays.
In many cases, the IRS will grant an extension of time for you to respond, usually for an additional 30 days.
Seek Professional Help If Needed
If you feel overwhelmed by the IRS notice or unsure about how to respond, consider consulting a tax professional. An accountant or tax attorney can help you interpret the letter and respond appropriately. Tax Law Advisory is here to assist you in this situation—if you need help or a consultation, contact us today.
If you decide to seek professional assistance, inform the IRS right away. Call the IRS and let them know that you have hired a tax professional to handle your case. In most cases, they will grant an extension to allow your representative to assess the situation and respond on your behalf.
Keep a Copy for Your Records
Always keep a copy of any notice you receive from the IRS, along with any responses you send. Store these documents with your tax records, as they may be helpful if any issues arise in the future.
Final Thoughts
Receiving an IRS notice can be nerve-wracking, but it doesn’t have to be a nightmare. Most notices are routine and can be resolved easily by following the instructions provided. Remember to stay calm, read the notice carefully, and take appropriate action if needed. If the letter requires no response, simply keep it for your records.
If you’re ever unsure about a notice or how to respond, don’t hesitate to reach out to a tax professional for guidance. The key is to address any issues promptly and proactively to avoid unnecessary stress and complications down the road.
By following these simple steps, you can handle IRS notices with confidence and keep your tax situation under control.
Frequently Asked Questions About IRS Notices
What is a notice date on an IRS letter?
The notice date is the date printed on the IRS letter. This is the official date the notice was issued, and it determines the deadline for any required response. Always check this date to ensure you respond in a timely manner.
What happens after an IRS Notice of Deficiency?
A Notice of Deficiency means the IRS believes you owe additional taxes. You have 90 days from the notice date to either pay the amount due, provide additional information, or file a petition in Tax Court if you disagree. Ignoring it can lead to further penalties and interest.
Can the IRS freeze your bank account without notice?
No, the IRS cannot freeze your bank account without sending you several warnings first. Before taking action, they will send a series of notices, including a Final Notice of Intent to Levy. If you don’t respond or resolve the issue, the IRS can place a levy on your bank account, meaning they can take funds directly to cover your tax debt.
Can you view IRS notices online?
Yes, you can view IRS notices online by creating an account on the IRS website. Once logged in, you can access digital copies of your tax records, notices, and other important documents.