Most IRS letters are about a simple issue: a math correction, a missing form or a balance due. The worst thing you can do is ignore it, because deadlines and penalties keep running.
1. Make sure it's real
The IRS starts contact by mail. It doesn't send first contact by text, email or social media, and it doesn't demand payment with gift cards or crypto. Real letters have a notice number (like CP2000 or CP14) in the top or bottom right corner. If in doubt, look up the notice number on irs.gov or call the IRS using the number on irs.gov, not the one in a suspicious message.
2. Read what it's about
- What year it refers to.
- What changed or what the IRS is asking for.
- The deadline to respond.
- The amount, if they say you owe.
3. Compare it with your return
Many letters, like the CP2000, appear when income the IRS received (a W-2, 1099 or 1099-K) doesn't match your return. Sometimes the IRS is right; sometimes the income was already reported in another place.
4. Respond before the deadline
If you agree, follow the instructions and pay or set up a payment plan. If you don't agree, send a written response with documents that prove your position. Keep a copy of everything you send.
5. If you can't pay
Don't ignore the letter. The IRS offers payment plans, and some penalties can be removed for first-time or reasonable cause.