How to Read an IRS Notice: A Simple Guide for Taxpayers

Receiving a letter from the IRS can make anyone’s heart skip a beat—but it doesn’t always mean bad news. In fact, many IRS notices are routine and simply require clarification or action within a specific timeframe. We help clients understand what these notices mean and what steps to take next. Here are a few tips to help you confidently read and respond to an IRS notice.

1. Don’t Panic—Read Carefully

The first thing to do is read the notice in full. IRS letters typically explain:

• Why you’re being contacted

• What the IRS believes needs to be corrected or verified

• What action (if any) you need to take

• When you must respond by

Most notices are about small issues—like a missing form, a miscalculation, or a need for additional documentation—not necessarily an audit.

2. Check the Notice or Letter Number

Look in the upper right-hand corner of the notice for a code like CP2000, CP14, or Letter 5071C. This number tells you what type of issue the notice covers.

You can visit the IRS website and search for that notice number to see a plain-language explanation of what it means and what actions are recommended.

3. Compare the Notice to Your Tax Return

Often, the IRS will include a summary or breakdown of changes they’ve made to your tax return. Review these details carefully against your own copy of the return.

If you agree with the change, you usually don’t need to do anything except make a payment (if there’s a balance due).

If you disagree, you have the right to dispute or clarify the matter—just be sure to respond by the date listed.

4. Take Note of Any Deadlines

IRS notices always include a response date. Missing that date can lead to additional penalties or interest, even if the issue could have been easily resolved.

Mark the deadline immediately and reach out to your tax professional if you need help before responding.

5. Don’t Ignore It

Even if you think the IRS is mistaken, do not ignore the notice. Unanswered letters can escalate into larger problems, including liens, levies, or additional penalties.

Respond promptly, even if your response is simply to request more time or clarification.

6. Keep a Copy for Your Records

Always make a copy of the IRS notice and any related correspondence you send. Keeping organized records helps if questions arise later or if you need to reference the issue in future filings.

7. Get Professional Help When Needed

If you’re unsure how to respond—or if the notice involves complex issues like back taxes, identity verification, or audit concerns—it’s best to consult an accountant or tax professional. We can communicate with the IRS on your behalf and help ensure the matter is handled correctly.

If you’ve recently received an IRS notice and need guidance, don’t hesitate to reach out. We can help you interpret the notice, verify its accuracy, and determine the next best steps.