Received an IRS Notice? Here Is What to Do

An IRS letter in your mailbox is stressful, but many notices are routine. They may ask for information, correct a small error, or tell you about a balance. Here is how to handle one.

Step 1: Read it and keep it

Read the whole notice. The notice or letter number, such as CP or LTR followed by digits, appears in the upper-right corner. Keep the notice with your tax records.

Step 2: Check that it is real

The IRS suggests searching for the notice by its number on IRS.gov. If it does not appear, or if it looks suspicious, call the IRS at 800-829-1040 and follow the representative’s instructions. Do not respond to a notice by clicking links in unexpected emails or texts.

Step 3: Find the due date

If the IRS asks you to respond, act by the due date on the notice. To protect your appeal rights when you disagree, reply by that date.

Step 4: Decide what to do

If you agree: Take the action the notice asks for. You generally do not need to reply unless the IRS asks you to.
If you disagree: Follow the notice’s instructions and send documents that support your position.
If you owe money: Pay by the due date, even if you cannot pay everything. This can reduce interest and penalties. Ask about payment options.
If the IRS changed your return: Compare the notice with your return. If you agree, note the changes on your copy and keep it.

Step 5: Keep proof

Keep a copy of anything you send. Use a method that gives you proof of delivery.

Penalty notices

Penalties are tied to the filing or payment problem. The IRS describes a failure-to-file penalty of 5% of unpaid tax for each month a return is late, up to 25%, and a failure-to-pay penalty of 0.5% a month, up to 25%. See extension vs. late filing. The IRS also has penalty relief, including the automatic penalty relief described in our 2026 compliance update.

Do not ignore it

Ignoring a notice that needs a response can cost you appeal rights and add charges. If you are not sure, ask a professional before you reply.

Want us to look at your notice? Book a call with FlowTex.

Sources

This article is general information, not tax advice. Each notice is different. Follow the instructions on yours and talk to a qualified professional.