If you get a letter from the IRS, don't ignore it and don't panic. Open it, read the whole thing, find the notice or letter number and the response date, and confirm the letter is real before you pay anyone or share any information. Then decide whether you agree or disagree with what it says, and act by the date printed on it. The IRS says most of its correspondence can be handled without calling or visiting an IRS office if you follow the instructions in the letter.
Why did I get a letter from the IRS?
The IRS says it may send you a notice or letter when:
- You have a balance due.
- Your refund has changed.
- The IRS has a question about your return.
- The IRS needs to verify your identity.
- The IRS changed or corrected your return.
- The IRS is delayed in processing your return.
Each notice or letter has a CP or LTR number in the right corner. Search that number on IRS.gov to see what that specific notice means.
A common one is the CP2000. The IRS sends it when income information from third parties, such as employers or financial institutions, doesn't match your return. The IRS says a CP2000 isn't a bill. It proposes changes that may raise your tax, lower it or not change it at all, and a response may still be required.
How can I tell if a letter from the IRS is real?
Scammers pretend to be the IRS, so it's smart to check. Here is how the IRS says it contacts people:
- The first contact is normally by U.S. mail. The IRS says it normally contacts you the first time by mail delivered by the U.S. Postal Service.
- Email and text only if you opted in. The IRS says it emails and texts only when you opt in.
- Never by social media. A social media direct message is never from the IRS.
- Audits start by mail. The IRS says it notifies you of an audit by mail and won't start an audit by telephone.
The IRS also lists warning signs that a phone call, email or text isn't from the IRS: it's unexpected, it rushes you, it threatens you, it asks for personal or financial information, or it demands payment now. Impersonators threaten arrest or deportation and don't let you question or appeal the amount they say you owe.
To check a letter, search its notice number on IRS.gov. If the letter doesn't show up in that search or it looks suspicious, the IRS says to call 800-829-1040. If you owe, pay only through the official options at IRS.gov/payments.
How long do I have to respond to an IRS letter?
There isn't one deadline for every letter. Your response date is printed on the letter, and the IRS says to act by that due date. What you do depends on your situation:
- If you agree: take any action the letter asks for. The IRS says you don't need to reply unless it specifically asks you to.
- If you disagree: follow the instructions in the letter to dispute it, and include information and copies of documents for the IRS to review. The IRS says to reply by the due date to guarantee your appeal rights.
- If it says you owe money: the IRS says to pay by the due date even if you can't pay the full amount, because that can reduce interest and penalty charges. If you can't pay in full, the IRS offers options such as a payment plan.
When you respond, send copies and never original documents, keep a copy of all IRS correspondence, and allow at least 30 days for the IRS to reply.
Need more time? For audits handled by mail, the IRS says it can ordinarily grant a one-time 30-day extension if you send a written request to the fax number or address on your letter. One big exception: if you receive a Notice of Deficiency by certified mail, the IRS can't extend the 90 days you have to petition the U.S. Tax Court.
What happens if you ignore an IRS letter?
Ignoring it usually makes things harder. According to the IRS:
- If you don't respond to an audit letter by the date shown, the IRS will complete the audit and send you a report with its proposed changes to your return.
- If you don't reply to a CP2000, or the IRS can't resolve the difference, it may send another notice and a bill.
- If you owe, interest accrues until the balance is paid, and penalties may apply.
- Replying by the due date is how you guarantee your appeal rights.
You don't have to handle it alone. The IRS lets you authorize a representative who is eligible to practice before the IRS by filing Form 2848, Power of Attorney and Declaration of Representative.
How Arena Accounting can help
The best defense is a return built on clean records. When your bookkeeping is kept up every month and your tax preparation is done by the same team, your return matches your books, and questions are easier to answer. Business owners who want bookkeeping, their business tax return and year-round tax strategy handled together can look at Bookkeeping+. For more common questions, see our FAQ.
Arena Accounting is based in Moore, OK, and works with business owners and families all across the country by phone or video, with a licensed CPA on the team. We handle IRS letters and audits, so you don't have to deal with the IRS on your own. If a letter just showed up, call us before you pay or respond, and we'll read it with you and help you work out the next step.
Got a letter from the IRS and not sure what it means? Let's talk.
This article is general information, not tax or accounting advice for your specific situation. Every situation is different, so talk with a tax professional before acting.