Receiving a letter or notice from the IRS can be unsettling. Even if you’ve filed your taxes accurately and on time, an IRS notice may prompt anxiety, especially if you’re unsure what it means or what action is required. The good news? An IRS notice does not automatically mean you’re in trouble. Often, it’s a routine communication seeking clarification, additional information, or notification of a correction.
At Intentional Accounting, we believe that understanding IRS notices empowers you to respond quickly, confidently, and accurately. Here’s what you need to know.
What Are IRS Notices?
An Internal Revenue Service (IRS) notice is a letter sent to taxpayers when the IRS needs to communicate about your tax return, account, or payments. Notices can be informational, request additional documentation, or outline an adjustment the IRS has made.
Common reasons you might receive a notice include:
- A mismatch in reported income (e.g., W-2 or 1099 discrepancies)
- Missing forms or schedules
- Underpayment or balance due
- Verification of identity
- A math error or other corrections made by the IRS
The IRS typically sends notices by physical mail. Hence, it’s essential to be wary of scams and never respond to unsolicited electronic requests or emails claiming to be from the IRS.
Read the Notice Carefully
When you receive an IRS notice, read it thoroughly. Essential elements to pay attention to include:
- The notice number: Usually found in the top right corner — e.g., CP2000, CP14, or LT11 — this number tells you the type of notice and how to interpret it.
- Contact information: IRS instructions for responding to or contacting the IRS directly.
- Explanation: Why the IRS is contacting you and what part of your tax return or account is affected.
- Required action and deadline: If the notice requests a response or payment, ensure you understand the timeframe.
Because the IRS assumes you received the notice five days after the mailing date, acting promptly is essential.
Don’t Ignore It
Even if the notice looks confusing or you believe it’s in error, ignoring it can lead to interest, penalties, or further enforcement action. The IRS often provides a deadline for responses or payments. If you miss that deadline, the situation can escalate unnecessarily.
Instead of ignoring the notice, act on it, even if your first step is to seek help with accounting and business services to interpret the notice.
Verify Whether You Agree or Disagree
After reading the notice, determine whether you agree with the adjustment or request.
- If you agree: Follow the instructions for responding or paying the balance due. Many notices include secure methods to pay online or by mail. Always keep a copy of any documents you send.
- If you disagree: You have the right to contest the IRS’s findings. Responding within the notice timeline and including supporting documentation strengthens your position. If the issue is complex or confusing, this is when professional assistance makes a big difference.
How Intentional Accounting Can Assist
Responding to the IRS notices can be stressful without the right expertise. At Intentional Accounting, we help taxpayers like you by:
- Reviewing IRS notices and explaining what they mean
- Evaluating whether the IRS’s changes or requests are accurate
- Communicating directly with the IRS on your behalf
- Preparing responses with supporting documentation
- Helping you resolve balance due issues, discrepancies, or corrections
Whether it’s a simple clarification request or a more complex account matter, our team brings clarity and strategy to your side with our tax services.
Tips for Protecting Yourself from Future Notices
While not every notice is avoidable, good tax practices can reduce the likelihood of surprises.
- File accurate and complete returns
- Double-check income statements (like W-2 or 1099 )
- Keep organized records throughout the year
- Respond quickly to any IRS communication
- Work with a trusted tax professional at Intentional Accounting
Preventive care in accounting and tax planning pays off and helps you avoid unnecessary stress.
Take Action on Your IRS Notice
Getting an IRS notice doesn’t mean something catastrophic has happened. It means the IRS needs clarification or has made an adjustment. The key is not to ignore it. Acting promptly, understanding the notice, and responding appropriately can keep minor issues from becoming bigger ones. At Intentional Accounting, we are professionals in finance and tax. If you have received an IRS notice and aren’t sure what to do next, contact us. We’re here to guide you through every step with clarity, confidence, and expert support.
