What to Do After Getting a Letter From the IRS

Receiving a letter from the Internal Revenue Service is common, as many notices are automatically generated to inform you about your tax account, request additional information, or notify you of a change. Ignoring the correspondence can lead to further complications, so it is best to approach the situation methodically. This guide explains the steps to take to resolve the matter correctly.

Verifying the Letter’s Authenticity

First, confirm that the letter is genuinely from the IRS and not a fraudulent attempt to access your personal information. Scammers often create fake notices that look official, but a red flag is a demand for immediate payment through unusual methods like wire transfers or gift cards. The IRS will never initiate contact by email, text message, or social media to request personal or financial information.

Authentic IRS correspondence is sent through the U.S. Postal Service and includes a notice number (e.g., CP2000) or letter number in the top right-hand corner. You can verify the notice by using the search function on the official IRS website. For confirmation, call the IRS directly at the phone number listed on their official website, not the number provided in the letter.

Common IRS Notices and Their Meanings

Understanding the specific notice you received is the next step. These notices are identified by a code that clarifies their purpose and fall into several categories, including proposed changes, math errors, and identity verification.

Proposed Changes/Balance Due

A frequent notice is the CP2000, “Proposed Changes to Your Return.” This is not a bill but a proposal from the IRS, generated when information from third parties like employers or financial institutions does not match your tax return. The notice details the proposed changes to your tax, credits, and payments and gives you a deadline, usually 30 days, to respond.

The CP14, “First Notice of Balance Due,” is the first formal bill sent when the IRS calculates that you owe taxes. It will show the amount due and any penalties or interest that have accrued. Review the calculations for accuracy before making a payment or setting up a payment arrangement.

Math Errors

A CP12 notice, “Math Error, Overpayment,” is sent when the IRS corrects a mathematical mistake on your return that changes your refund amount. The notice will explain the changes made and the new refund amount. If you agree with the correction, no further action is needed, and you should receive your adjusted refund within four to six weeks.

Conversely, a CP11 notice indicates a math error resulted in you owing more tax. This notice will detail the specific corrections made by the IRS. You will need to review these changes and, if you agree, pay the additional amount owed by the due date to avoid further interest and penalties.

Identity and Return Verification

To combat identity theft, the IRS sends notices like the 5071C Letter to verify a taxpayer’s identity before processing a return. Receiving this letter means the IRS needs you to confirm that you filed the tax return in question. The notice provides instructions for verifying your identity online or by phone; ignoring it will delay your return and any refund.

General Information/Refund Status

Sometimes, a notice is purely informational. A CP05 notice, “Refund Hold,” informs you that the IRS is reviewing your return for accuracy before issuing your refund. The agency needs more time to verify items like income or credits. If the IRS requires more information, they will send a subsequent letter, such as the CP05A, requesting specific documents.

Information and Documents Needed to Respond

To formulate a response, gathering the right information first will streamline the process. Having all relevant documents on hand ensures you can address the issue accurately. If you disagree with the notice, you will also need to assemble any documentation that supports your position, such as a corrected Form 1099 from a payer or receipts for a business expense the IRS questioned.

You will need:

• The IRS notice itself, as it contains the notice number and response deadline
• A complete copy of the tax return for the year in question, including all accompanying schedules and forms
• All supporting documents used to prepare the return, such as Forms W-2 from employers and any Forms 1099
• Receipts, bank statements, or acknowledgments for any deductions or credits claimed, such as for charitable contributions
• Form 1095-A, if you received health insurance through the marketplace

How to Formulate and Submit Your Response

The method and content of your response will depend on whether you agree or disagree with the notice. Follow the instructions provided in the letter precisely to ensure your response is processed correctly.

If you agree with the changes proposed by the IRS, the process is straightforward. Most notices include a response form to sign and return, and if a balance is due, a payment voucher. You can pay online at IRS.gov/payments or mail a check with the voucher, writing your Social Security number, the tax year, and the notice number on your payment.

If you disagree with the notice, you must provide a written explanation. Your letter should be clear, addressing each disputed item separately. State your name, address, Social Security number, the tax year, and the notice number at the top of your letter. For each point of disagreement, explain why you believe the IRS is incorrect and refer to the specific supporting documents you are including as proof. Always send copies of your documents, never the originals.

It is highly recommended that you mail your response using USPS Certified Mail with a return receipt. This provides proof of timely mailing and confirmation when the IRS receives your correspondence. Some notices offer an option to respond electronically via the IRS Document Upload Tool, and after submitting your response, allow at least 30 days for a reply.