When an IRS notice arrives, keep the complete letter, identify the tax period and notice number, and put any response date on your calendar. Then gather the records relevant to the specific issue so that a conversation with a tax professional can focus on what the notice actually asks.
What is the notice asking you to do?
IRS correspondence can concern a balance, a refund change, identity verification, a correction or a processing delay. The IRS says to locate the CP or LTR number and use its notice search to understand the letter. It also directs taxpayers to read carefully, preserve the notice and respond by the due date when a response is requested. IRS notice guidance
Write a one sentence summary in plain language: "The letter asks about income reported for this year" or "The letter says a payment is missing." If the meaning is unclear, write that down as your first question rather than guessing.
For help choosing where to begin, visit tax resolution services. If the correspondence specifically concerns an examination, the IRS audit representation page provides the related service route.
Which details belong in your working notes?
Create a short cover sheet for your records. Use it to distinguish what the IRS states from what you have independently checked.
| Detail | What to record | Why it helps the conversation |
|---|---|---|
| Notice | CP or LTR identifier | Identifies the correspondence |
| Period | Tax year or other period shown | Points to the relevant records |
| Timing | Date received and response date | Makes urgency visible |
| Request | What the letter asks for | Keeps the discussion focused |
| Your question | What you do not understand or dispute | Gives the adviser a starting point |
Keep all pages together, including instructions that appear at the end. If there are several notices, place them in date order. Add a short record of calls or responses you have already made, with the date and what was discussed.
Which records should you gather?
Start with the return for the period named in the notice. Add documents that relate to the issue: a payment confirmation for a payment question, an income statement for an income question, or previous correspondence about the same matter. Keep unrelated years separate unless they are needed to explain the history.
Make a list of missing records and where you expect to obtain them. Avoid rewriting your original notes after a phone call. Add a dated update instead, so the sequence stays understandable.
If you are uncertain which IRS record would be useful, discuss that through the IRS records service page. A transcript question and a notice response question may require different work.
What if you disagree or suspect the letter is false?
The IRS instructs taxpayers who disagree to follow the notice's dispute instructions, provide supporting information and meet the response deadline. If a letter looks suspicious or cannot be found in its notice search, use the verification instructions on the official IRS website. IRS notice guidance
Write down the exact point you dispute. "My records show a payment on this date" is more useful than "The notice is wrong." Keep supporting records available and ask how they should be submitted.
Asking for help is a step in handling the notice. Keep the response date visible while the next action is being determined.
How should you contact the office?
In a first inquiry, provide the type of notice, tax period and response date. Explain whether you have replied already. Ask whether the office can review the matter and how to deliver the complete notice and supporting records.
Avoid placing taxpayer identification numbers, account details or complete tax documents in a general contact message. Start with the summary and obtain document delivery instructions.
Contact the office with your notice question. Include the response date so the timing is clear from the beginning.
Frequently asked questions
Does every IRS letter mean an audit?
No. IRS letters can concern a balance, a refund adjustment, identity verification, processing delays or another question about a return. Read the specific notice.
Does contacting an accountant extend the response deadline?
Do not assume the deadline changes when you request help. Keep the notice's response date visible and ask promptly what action is required.
Sources
About the author
Craig L. Elggren, CPA, PC is a Gilbert accounting practice. This article provides general information about organizing notice records. The action required depends on the actual notice and the taxpayer's circumstances.