Got a Letter from the IRS? Here’s the Do’s and Don’ts

Opening your mailbox to find an envelope from the IRS can make your stomach drop.

But before you file it away in the “deal with later” pile (or worse, toss it), take a breath. Most IRS correspondence isn’t as alarming as it looks. Knowing how to respond calmly and correctly can save you money, stress, and lots of unnecessary headaches.

First Things First: Open It

This sounds obvious, but you’d be surprised how many people let IRS mail sit unopened out of anxiety. Every notice has a specific purpose, and that purpose is spelled out clearly inside. It might be a simple heads-up about a change to your account, a request for additional information, or a notice of a balance due.

Whatever it is, you can’t address it if you don’t read it.

What Most IRS Notices Are Actually About

IRS letters typically fall into a few categories:

1. Account adjustments. The IRS may have calculated something differently than you did, adjusted your refund, corrected a math error, or applied a credit or payment differently. These notices explain what changed and why.
2. Requests for information. Sometimes the IRS needs documentation to verify something on your return. This could be proof of a deduction, confirmation of income, or clarification on a credit you claimed.
3. Balance due notices. If you owe money, the IRS will say so in writing. The notice will specify the amount, explain why it’s owed, and outline your options for paying or disputing it.
4. Audit notifications. Less common, but they do happen. These will clearly state what’s being reviewed and what you need to provide.

What to Do When You Get One

Once you’ve read the notice, compare it to your original tax return. If the IRS made a change or correction, look at what’s different and decide whether you agree. Not every notice requires a response (many are purely informational) but the letter will tell you clearly if action is needed.

If there’s a balance due, don’t ignore it. Interest and penalties add up quickly, and the IRS offers options for taxpayers who can’t pay in full, including installment agreements and offers in compromise. If you disagree with what the notice says, you have every right to dispute it. Follow the instructions in the letter and include any documents that support your case.

Whatever you do, hold onto the notice. The IRS recommends keeping correspondence for at least three years from the date your return was filed.

Watch Out for Scams

One more thing to know: the IRS will never contact you by email, text, or social media to ask for personal information or payment.

If you get a call from someone claiming to be the IRS demanding immediate payment by gift card or wire transfer, hang up.

Real IRS contact starts with a letter in the mail.

If you’ve received a notice and aren’t sure what to do next, or if you’re dealing with a significant balance or an audit, consider talking to a CPA. These situations are rarely as bad as they feel in the moment, and having an experienced professional in your corner can make a difference.

At Smith Patrick CPAs, we work with clients who receive IRS letters and aren’t sure what they mean or what to do. We’re happy to help you sort it out. If you have questions, contact us to discuss your situation.