An IRS letter does not automatically mean trouble. Here is how to read it, respond, and stay calm.
Receiving a letter from the IRS can be unsettling, but most notices are routine. The most common types propose a change to your return based on information the IRS received from a third party (like a 1099 you did not report), remind you of a balance due, or ask you to verify a credit you claimed.
Start by reading the notice carefully. The top right corner contains a CP or LT number that identifies the notice type, and the body explains exactly what the IRS is asking for. Do not ignore it—most notices have a response deadline, and missing it can lead to additional penalties or escalation.
Compare the notice to your filed return and your supporting documents. If the IRS is proposing a change based on a 1099 you forgot to include, and the change is correct, you may simply owe additional tax plus interest. If you disagree, you have the right to respond with documentation explaining your position.
Never call the phone number on a suspicious letter without first verifying it on IRS.gov. The IRS initiates contact almost exclusively by mail, not by phone or email. If you receive a call claiming to be from the IRS demanding immediate payment by gift card or wire transfer, it is a scam.
If the notice relates to a return we helped prepare, contact our office. We can review the letter with you, help you understand whether the proposed change is correct, and assist with drafting a response or setting up a payment arrangement if one is needed.
This article is general educational information and is not legal, accounting, tax, or investment advice. Rules, limits, and thresholds change. Insurance products and availability vary by state, carrier, underwriting, and licensing. Coverage is not effective until approved and issued by the carrier. Consult our office for guidance specific to your situation.