If you've opened your mail and found a letter from the IRS, the first thing to know is this: most IRS notices are routine. They're not arrest warrants. They're not audits. They're paperwork — and almost all of them are resolvable, often without paying what the IRS initially says you owe.
This guide walks through what to do in the first 24 hours, what each of the most common notices actually means, and when you should call a tax professional instead of handling it yourself.
The first thing to do: verify it's real.
Tax scams are everywhere. Before you do anything else, confirm the notice is actually from the IRS:
- The IRS only initiates contact by mail. Not email. Not text. Not phone calls demanding immediate payment by gift card. If you got any of those, it's a scam.
- Real notices have a notice number — usually printed in the top right corner (e.g., "CP14," "CP2000," "LT11").
- The letter will reference a specific tax year and a specific issue, not generic threats.
- Verify by calling the IRS directly at 1-800-829-1040, not the number on the suspicious letter.
If the "IRS" is demanding payment by Apple Pay, gift card, wire transfer, or cryptocurrency — it is 100% a scam. The IRS does not collect that way.
Five steps to take in the first 24 hours.
Read the notice carefully.
The IRS writes notices in plain English. Find the notice number (top right), the tax year in question, the deadline to respond, and the specific issue. Read it twice. Most of your panic will settle after the first read.
Note the deadline.
Most notices give you 30 or 60 days to respond. Some give as little as 10. Write the deadline on your calendar with a one-week buffer — interest and penalties continue accruing daily, so earlier is always better.
Pull your records.
Get out the tax return for the year in question and any supporting documents (W-2s, 1099s, receipts, brokerage statements). Compare what the IRS is claiming to what's on your return. Sometimes they're right. Sometimes they're not.
Decide: do you agree or not?
If you agree with the IRS, you respond by paying or accepting the change. If you disagree, you respond with documentation supporting your position. Either way — you respond. Silence is the one option that always makes things worse.
Decide if you need help.
For straightforward notices where you agree with the IRS (like a simple math error correction), you can often handle it yourself. For anything involving an audit, a proposed change you disagree with, a levy or lien notice, or any amount you can't pay — call an Enrolled Agent or tax attorney. We are federally licensed to represent you before the IRS.
The most common IRS notices, explained.
These are the notices you're most likely to receive. Find yours below to see what it actually means.
Balance Due
You filed a return showing you owe taxes, and the IRS is asking for payment. This is the most common notice and goes out in waves starting in May each year. Includes the amount owed plus interest and penalties calculated to date.
Standard urgency · Respond within 21 daysProposed Changes to Your Return
The IRS matched income reported on W-2s and 1099s to your return and found a mismatch. This is not an audit — it's an automated proposal. You can agree, disagree with documentation, or partially agree. Often resolvable without paying what they propose.
Higher urgency · 30-day response windowReminder: You Owe Taxes
You received a CP14 and didn't respond. This is the IRS's first reminder. It's not yet a final notice but the clock is moving. Penalties and interest continue to accrue.
Increasing urgencySecond / Final Reminder
The IRS is getting closer to collection action. CP504 is officially a "Final Notice" — meaning the next step is enforcement (levies, liens). Do not ignore CP504. Call a professional immediately.
High urgency · Immediate response neededFinal Notice of Intent to Levy
The IRS is preparing to take money from your bank account, wages, or other assets. You have 30 days to request a Collection Due Process hearing. Engage a tax professional today — not next week.
Critical urgency · 30 daysMath Error Adjustment
The IRS recalculated something on your return — usually a credit or deduction calculation. The change might increase or decrease your refund. Often correct, but always worth verifying.
Low urgency · 60 days to disagreeRefund Applied to Old Balance
You were owed a refund but the IRS applied it to a prior-year balance you still owed. The notice explains what was applied and what (if anything) remains.
InformationalAdjustment to Your Return
The IRS made a change based on information you provided (often after a CP2000 response or amended return). The notice explains the new balance, refund, or zero owed.
Informational30-Day Audit Letter
You're being audited and the IRS has proposed changes. You have 30 days to respond, either agreeing or disagreeing with documentation. This is the point at which professional representation almost always pays for itself.
High urgency · 30 daysWhen to handle it yourself, and when to get help.
You can probably handle it yourself if...
- You received a CP14 or CP49 and agree with the amount owed
- You received a CP12 (math error) and the math checks out
- The notice is purely informational (no action required)
- The amount in question is small and you can pay it in full
Call a tax professional if...
- You received a CP2000 and need to dispute proposed changes
- The notice involves an audit or examination (Letter 525, Letter 566, etc.)
- You received a CP504, LT11, or any "Intent to Levy" notice
- You owe more than you can pay in full and need a payment plan or Offer in Compromise
- You disagree with the IRS's claim but aren't sure how to respond
- The notice involves a tax year that's already three or more years old
- You haven't filed returns for one or more years and got a substitute return notice
Enrolled Agents are federally licensed by the IRS to represent taxpayers at every level — examinations, collections, and appeals. We can speak to the IRS on your behalf, file responses, request payment plans, and submit Offer in Compromise applications. We're the only tax professionals other than CPAs and attorneys with this level of representation authority.
What not to do.
Don't ignore it. The single worst response to an IRS notice is no response. Penalties and interest compound. Collection action escalates. Resolution options narrow.
Don't pay before reading carefully. Sometimes the IRS is wrong. If you pay before understanding the notice, getting that money back can be slow and difficult.
Don't respond on the phone unless you've verified the contact. Real IRS agents are accustomed to being asked to verify identity. If something feels off, hang up and call the main IRS number yourself.
Don't sign anything you don't understand. Some letters include forms that, if signed, waive your right to appeal. Read carefully.