I received a notice from the IRS…now what?

Receiving a notice from the IRS can be unsettling and can trigger a series of immediate questions. What went wrong? What do I need to do? Is this notice legitimate, or could it be a scam? Am I going to owe additional taxes?

Most IRS notices are not prepared and mailed by some unknown IRS agent.  Instead, the IRS notice is generated by the IRS’s Automated Collection System (ACS). Most notices that start with “CP” are computer-generated.

The good news is that most notices are routine and solvable. IRS notices are a common occurrence for both individual taxpayers and businesses, so there is no need for immediate panic. Here’s what the letter might mean and the steps you should take to respond confidently and correctly.

1. Understand Why You Received the Notice

IRS notices serve many different purposes. Some provide information, while others request documentation, notify you of a discrepancy, or outline a balance due. Knowing the reason behind the notice is key to resolving it smoothly.

Common IRS Notices and What They Mean

• CP01 Series – Identity theft alerts or protection.
• CP2000 – Reports mismatches between income you reported and what third parties reported.
• Letters 5071C / 4883C – Request identity verification.
• Balance Due Notices (CP14, CP501, CP503, CP504) – Inform you of unpaid taxes, with escalation.
• Final Notice of Intent to Levy (LT11, Letter 1058) – Warns that collection actions may begin.
• Employment Tax Filing Requirement Notices (CP250A/B/C) – Notify businesses of payroll tax filing changes.

2. Review the Notice and Confirm It’s Legitimate

Always read the notice carefully and stay alert for scams.
Remember: The IRS communicates by mail — not by email, text, or social media.

If something seems off, contact the IRS directly using the phone number listed on the official website or on the notice itself. Never use a number provided in an unsolicited email or message.

3. Determine What the IRS Is Asking You to Do

Some notices require no action, while others may need a response, additional documents, or payment. If anything is unclear, reach out to your tax advisor before responding. They can interpret the notice and help you determine the correct next step.

4. Respond Completely and Before the Deadline

Most IRS letters include deadlines. Missing them can escalate the situation, so act quickly.

If you need more time to gather documents, you can contact the IRS to request an extension. And if you’re working with a tax professional, send them the notice right away so they have time to prepare an accurate response.

The Bottom Line

An IRS notice doesn’t automatically mean you or your tax preparer did something wrong; often, it’s simply a request for clarification. Reviewing the notice carefully and responding promptly helps ensure a smooth resolution.

If you need help interpreting or responding to a notice, the Wegner CPAs tax advisors are ready to guide you through each step with clarity and confidence. Get in touch to learn more.