Understanding IRS Notices: What They Mean and What to Do

You open your mailbox and… oh NO! There’s a letter from the IRS!

First of all, don’t panic. The IRS sends letters and notices for all sorts of reasons.

Take a deep breath. Open the letter — don’t just toss it in your “important stuff to deal with later” pile. Read it carefully. Figure out what next steps, if any, may be necessary and if there are any deadlines. Then file the letter with your tax records for future reference.

Why did i get an IRS letter?

The IRS may send you a notice or letter if:

You have a balance due
Your refund amount has changed
The IRS has a question about your return
The IRS needs to verify your identity
The IRS changed or corrected your return
There is a delay in processing your return

To get details on an IRS notice or letter, search for it by number or topic. You can find the CP or LTR number on the right corner of the letter. You can also get more information about IRS notices on the Taxpayer Advocate Service website.

What Do I need to do Next?

Review the letter carefully. Most IRS letters and notices are about federal tax returns or tax accounts. Each notice deals with a specific issue and includes any steps you need to take. A notice may reference changes to a taxpayer’s account, taxes owed, a payment request or a specific issue on a tax return.

If you don’t understand the letter or can’t read it, you can call the IRS to request notices in a different format (such as large print, Braille, or audio) or request notices in a different language using Schedule LEP.

What to do next depends on the reason for the letter and your situation. Reply only if instructed to do so. There is usually no need to call the IRS. However, if the IRS asks you to respond, make sure to follow up by the due date. You also have the right to dispute any changes that the IRS makes to your account.

If you agree with the notice or letter

You may not need to reply unless the IRS specifically asks you to.

For example, if the IRS made an automatic correction to a mistake on your tax return, no response may be necessary if you agree with the changes. If the change resulted in a tax balance due, you may only need to pay the additional tax by the due date given in the letter.

If you disagree

Follow the instructions in the notice to dispute what it says. If you need more information, you can call the IRS at the contact phone number located in the top right-hand corner of the notice or letter. You can also write to the IRS at the address on the notice or letter.

Make sure to include information and copies of documents for the IRS to review when considering your dispute. Keep a copy of all correspondence for your own records, as well.

To guarantee your appeal rights, make sure to reply by the due date. The IRS is also required to respond to your written communication within the timeframe provided on the notice or letter.

If you have an amount due

Even if you can’t pay the full amount you owe, pay at least something by the due date. This can reduce interest and penalty charges.

If you can’t pay the full amount by that date, you need to figure out what payment options might work for your situation, and act to set up a payment plan or other way to pay off your balance. You can apply for a payment plan through your online IRS account.

If the IRS changed or corrected your tax return

Review the tax return information provided by the IRS. Compare the information in the notice or letter with your original return. If you agree, note the corrections on your personal copy of the tax return and keep it for your records.

You only need to take action if the IRS asks for more information, if you have a balance due, or if you disagree with the notice.

If you suspect a scam

The IRS will never contact a taxpayer using social media or text message. The first contact from the IRS usually comes in the mail, however scammers are also beginning to send mail to taxpayers. Make sure to verify the information in your letter before responding with any personal information or making any payment.

If the letter or notice number doesn’t appear in your search or if it looks suspicious, call the IRS at 800-829-1040. Follow the IRS representative’s instructions to report your letter. You can also read more here about known tax scams and IRS consumer alerts.

If you are unsure whether you actually owe money to the IRS, the best way to check is to view your tax account information on IRS.gov.

What should I do with the notice or letter?

You should keep any notices or letters that you receive from the IRS. These include adjustment notices when the IRS takes action on your taxpayer account. In general, you should keep records related to any tax year for three years from the date that you filed that tax return.