IRS Tips on How to Handle an IRS Letter or Notice, FYI...
The IRS mails millions of letters every year to taxpayers for a variety of reasons. Keep the following suggestions in mind on how to best handle a letter or notice from the IRS:
- Do not panic. Simply responding will take care of most IRS letters and notices.
- Do not ignore the letter. Most IRS notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes specific instructions on what to do. Read the letter carefully; some notices or letters require a response by a specific date.
- Respond timely. A notice may likely be about changes to a taxpayer’s account, taxes owed or a payment request. Sometimes a notice may ask for more information about a specific issue or item on a tax return. A timely response could minimize additional interest and penalty charges.
- If a notice indicates a changed or corrected tax return, review the information and compare it with your original return. If the taxpayer agrees, they should note the corrections on their copy of the tax return for their records. There is usually no need to reply to a notice unless specifically instructed to do so or to make a payment.
- Taxpayers must respond to a notice they do not agree with. They should mail a letter explaining why they disagree to the address on the contact stub at the bottom of the notice. Include information and documents for the IRS to consider and allow at least 30 days for a response.
- There is no need to call the IRS or make an appointment at a taxpayer assistance center for most notices. If a call seems necessary, use the phone number in the upper right-hand corner of the notice. Be sure to have a copy of the related tax return and notice when calling.
- Always keep copies of any notices received with tax records.
- The IRS and its authorized private collection agency will send letters and notices by mail. The IRS will not demand payment a certain way, such as prepaid debit or credit card. Taxpayers have several payment options for taxes owed.
For more on this topic, visit IRS.gov. Click on the link ‘Respond to a Notice’ at the bottom center of the homepage. Also, see Publication 594, The IRS Collection Process.
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To make a payment, visit IRS.gov/payments or use the IRS2Go app to make a payment with Direct Pay for free, or by debit or credit card through an approved payment processor for a fee.
Avoid scams. The IRS will never initiate contact using social media or text message. The first contact generally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out.
Additional IRS Resources:
- Tax Topic 651 – Notices – What to Do
- Tax Topic 652 — Notice of Underreported Income – CP-2000
- Tax Topic 653 – IRS Notices and Bills, Penalties, and Interest Charges
- Tax Topic 654 — Understanding Your CP75 or CP75A Notice Request for Supporting Documentation
- Understanding Your CP2000 Notice
IRS YouTube Videos:
- IRS2Go - English | Spanish | ASL
- IRS Taxes-Three Easy Ways to Pay – English | Spanish | ASL
- Owe Taxes But Can't Pay? – English | Spanish | ASL
- Responding to Audit Letter Notice CP75: Earned Income Tax Credit (EITC) – English | Spanish | ASL
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