Opening the mail to find a letter from the Internal Revenue Service can be unsettling. But in many cases, an IRS notice is simply the agency’s way of asking a question, requesting additional information, or notifying you of a change to your tax return.

The most important thing to remember: don’t panic – and don’t ignore it.

Taking the right steps early can help resolve the issue quickly and prevent additional penalties or interest.

Why the IRS Sends Notices

The IRS sends millions of notices each year for a variety of reasons, including:

  • A mismatch between income reported on your tax return and income reported by an employer or financial institution
  • A math error on your return
  • Missing information or documentation
  • Questions about a credit or deduction
  • A balance due on your account

Most notices are informational and can be resolved with a simple response.

What to Do When You Receive a Notice

Step 1: Read the Notice Carefully

Start by reading the entire notice from top to bottom. IRS letters typically explain:

  • Why the notice was sent
  • What changes (if any) were made to your tax return
  • What action, if any, is required from you
  • A deadline to respond

Make note of the notice number, which usually appears in the upper right corner of the letter.

Step 2: Compare the Notice With Your Tax Return

If the notice references a specific tax year, locate your copy of the return you filed for that year and compare it to the information in the letter.

Sometimes the IRS may have information that wasn’t included on your return, such as a missing Form W-2 or Form 1099.

Step 3: Determine Whether You Agree or Disagree

After reviewing the notice, decide whether you agree with the IRS.

If you agree:

Follow the instructions in the notice. This may include making a payment, correcting information, or confirming the IRS’s changes.

If you disagree:

You have the right to respond. Provide documentation supporting your position and follow the instructions for submitting your response.

Step 4: Respond Before the Deadline

Most notices include a response deadline. Missing this deadline could lead to additional interest, penalties, or collection actions.

Even if you need more time to gather information, it’s important to acknowledge the notice and respond according to the instructions.

Step 5: Keep Copies of Everything

Maintain copies of:

  • The IRS notice
  • Any documentation you send to the IRS
  • Proof of mailing or electronic submission

Good record keeping can help if questions arise later.

When to Seek Professional Help

Some notices are simple to resolve, but others involve more complex issues such as audits, disputes, or payment arrangements.

If you’re unsure how to respond—or if the situation becomes complicated—you may want to consult a qualified tax professional.

Enrolled Agents, federally licensed tax professionals authorized to represent taxpayers before the IRS, can help review the notice, communicate with the IRS on your behalf, and work toward a resolution.

The key takeaway: an IRS notice doesn’t have to be overwhelming. With the right approach and timely action, many issues can be resolved quickly.