You Got an IRS Notice. Here Is Exactly What to Do Next

Few pieces of mail raise blood pressure like an envelope from the Internal Revenue Service. But here is the reality after decades of handling them: most notices are routine, many are wrong or only partly right, and nearly all of them become manageable if you respond correctly and on time. The taxpayers who get hurt are the ones who panic, or worse, the ones who put the envelope in a drawer.

Anatomy of an IRS Notice

Every legitimate IRS notice follows a standard structure. In the upper corner you will find a notice or letter number (formatted like CP followed by digits, or LTR followed by digits) that identifies exactly what kind of communication it is. The notice states the tax year involved, a summary of what the IRS believes, a proposed change, a balance due, a question about your return, and, critically, a response deadline. It will also list the specific items at issue and explain your options, including how to agree or dispute. Read all of it, including the back pages, because your rights and deadlines are spelled out there. Also know this: the IRS initiates contact by mail. Phone calls, emails, or text messages demanding immediate payment are scams, full stop.

Common Notice Types, Conceptually

• Math error and adjustment notices. The IRS changed something on your return, a calculation, a credit, an estimated payment amount that did not match its records, and is telling you the result. These are frequently resolvable quickly, but do not assume the IRS version is right.
• Underreporting matches. IRS computers compare your return against W-2s, 1099s, and other information returns filed by third parties. A mismatch generates a proposed additional tax. These notices are often overstated because they ignore basis, deductions, or income already reported on a different line.
• Balance due and collection notices. A series of escalating letters about unpaid tax. Early letters are reminders; later ones carry serious consequences, including the ability to file liens or levy accounts. The sequence matters, where you are in it determines your options.
• Examination letters. Anything from a correspondence audit about one or two items to a full examination. The scope stated in the letter defines what is on the table.
• Statutory notices with legal deadlines. Certain notices trigger a fixed window to petition the United States Tax Court. Miss that window and you lose important rights that cannot be recovered by apology or explanation.

What to Do, and Not Do

1. Do not ignore it. Interest and penalties accrue, and deadlines expire, whether or not you open the envelope.
2. Do not pay reflexively. A surprising share of notices are wrong in whole or in part. Paying first can complicate getting money back.
3. Verify against your records. Pull the return for that year and compare the IRS's claim line by line.
4. Respond by the deadline, in writing, and keep proof. Send copies, never originals, and use tracked mail. If you need more time, ask before the deadline, extensions to respond are often available.
5. Never guess on the phone. Anything you tell the IRS becomes part of the record. If you are unsure, say you will respond in writing.

Why Representation Matters

A CPA authorized under a power of attorney can deal with the IRS so you do not have to, receiving copies of correspondence, speaking with agents, framing responses precisely, and invoking appeal rights at the right moments. Representation matters because the process is procedural: penalty relief has qualifying criteria, collection alternatives like installment agreements have requirements, and audits have scope boundaries a professional knows how to hold. Taxpayers who respond alone often concede issues they would have won, or volunteer information that expands the inquiry.

Open the Envelope, Then Call

If an IRS notice has landed in your mailbox, the clock is already running. Integris Accounting represents individuals and businesses across South Florida before the IRS, from simple adjustment letters to examinations and collection matters. Call (305) 497-0552 and let us take it from here.