IRS Notice in the Mail? Here's Exactly What to Do
- Angela Reina
- 7 days ago
- 4 min read
You’re sorting through the mail, tossing all the junk flyers aside, when a single envelope stops you in your tracks. The bold letters of the return address show three anxiety-inducing letters…IRS.
Assuming you’re still panicking as you read this after your mad dash to Google, let us put you at ease: most IRS notices are far less serious than they seem.
In this blog, we’re going to tell you:
What most IRS notices are for
The different kinds of IRS notices you may receive
Exactly what to do (and not to do) if you receive one
Most IRS Notices are Routine
There’s a good chance there’s no need to panic if you get an IRS notice in the mail.
The IRS sends out around 170 million notices a year. You aren’t being personally attached. You're simply part of an administrative process that almost everyone ends up in at one point.
Some of the most common reasons for receiving an IRS notice include:
There was a math error on your return
Your report income didn’t match
You’re missing a form or signature
They’re confirming you received a payment
In some cases, your notice may inform you that you qualify for an additional credit, working in your favor.
To take the proper course of action, you’ll need to know the type of notice in your hand.
What Kind of IRS Notice Did You Receive?
Determine the kind of IRS notice you received by looking at the top right corner of page 1. It will be labeled “CP’ for computer-generated notice or “LTR” for letters. The number there will tell you the severity of the notice.
Common IRS Notice Categories
These are the five most common types of notices you may receive from the IRS.
Information Requests: The IRS needs documentation to verify something on your return
Corrections or Adjustments: The IRS made a change and is notifying you
Balance Due: You owe taxes after a correction or underreporting was identified
Enforcement Actions: The IRS is placing liens, levies, or wage garnishment warnings
Audit Selection: Your return has been flagged for further review
Within each of those categories are specific notices that pop up most often.
The Most Common IRS Notices to Know
The IRS most often sends out:
CP200: Your income on your return doesn’t match what other payers reported. It’s easily resolved by providing the IRS with the correct number or documentation.
CP504: The IRS intends to levy state tax refunds to cover a serious overdue balance. You’ll want to address this right away.
CP90: This is the IRS’s final notice before they start seizing your assets to cover your overdue balance. You should get professional help to immediately address this.
CP75: The IRS wants additional documentation to prove you’re eligible for the tax credits you’ve claimed.
Letter 3219: The IRS determined you owe additional tax, and you have 90 days to pay, agree, or file a petition with the U.S. tax court.
If you receive these are any other notices, here’s what to do.
Five Steps to Follow When You Receive an IRS Notice
First, take a deep breath. Then…
1. Read the Notice Carefully
That notice tells you exactly what the IRS wants, what return it relates to, what action (if any) you need to take, and by when. Note the notice number, tax year in question, the response deadline, and the amount of money owed, if any. That informs your next move.
2. Ensure It’s Real
Don’t fall for increasingly common tax scams. Verify the notice number on IRS.gov to make sure it’s real. The IRS will only send you a first notice by mail. If you receive a call, email, text, or social media message, don’t engage. You can assume it’s a phishing attempt and report it to phishing@irs.gov.
3. Compare the Notice to Your Tax Return
Go line by line down your actual filed return that the IRS is questioning. If you find the discrepancy and you’re right, you can submit that documentation to the IRS. If the IRS is right, you’ll have to determine how to proceed.
4. Respond by the Deadline
Whether you’re right or wrong, you need to give the IRS answers by their imposed deadline. Missing it can strip you of appeal rights, trigger automatic escalation, or result in additional penalties.
If You Agree with the IRS: Note if you’re paying in full or need a payment plan. The IRS will typically work with you if you reach out in advance.
If You Don’t Agree: You’ll need to submit a written response of your position with supporting documentation sent by certified mail so there’s a delivery record.
5. Know When to Get Professional Help
Simple notices—requests for more information, math corrections, etc.—can typically be handled on your own. Anything involving a larger balance, an audit, a levy threat, or a deficiency notice should be handled by tax professionals.
A seasoned CPA can often resolve notices faster, prevent escalation, and communicate with the IRS on your behalf, which takes the stress off you.
Do not ignore an IRS notice.
What starts as an initial notice quickly escalates to federal tax liens and levies, with your options narrowing and costs growing at every stage. (We don’t want to scare you; just make you understand the seriousness of ignoring a notice.)
Navigate Tax Notices with AVM DeMars
You don't have to navigate this alone, and you shouldn't have to figure out what a CP2000 means at 10 pm on a Tuesday.
The tax team at AVM DeMars helps you handle any IRS notice and take the proper steps to address it. You can rely on us as your trusted tax experts for Long Island, New Jersey, and Connecticut.
Received an IRS notice? Contact us today for a free consultation.
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