A letter from the IRS lands in the mailbox and the first reaction is usually dread. That’s understandable — but most IRS notices are routine, don’t involve audits, and have a straightforward path forward. The mistake most people make is either panicking or ignoring it. Both create problems. Reading the notice, understanding what it means, and responding by the deadline turns a stressful envelope into a manageable task.
Why the IRS sends notices
The IRS mails millions of notices each year. The most common reasons:
- There’s a discrepancy between what you reported and what a third party (employer, bank, brokerage) reported to the IRS
- You have a balance due that hasn’t been paid
- The IRS made a change to your return and is informing you
- They need additional information to process your return
- You’re being selected for an audit (less common, and usually not the first contact)
Real vs. fake: how to tell the difference
Before anything else, verify the notice is legitimate. The IRS communicates by U.S. mail — never by email, text message, or social media. Any email or text claiming to be from the IRS is a scam, full stop.
Real IRS notices:
- Come in standard envelopes via U.S. mail
- Show a notice number (such as CP14, CP2000, LT11) in the upper right corner
- Include a contact number that appears on irs.gov/notices
- Never demand immediate payment via gift cards, wire transfer, or cryptocurrency
- Never threaten arrest for non-payment
If you receive a phone call claiming to be from the IRS: the IRS almost always sends written notice before calling, and legitimate IRS agents will never demand immediate payment over the phone or threaten immediate arrest. When in doubt, hang up and call the IRS directly using the number on their official website.
Common IRS notice types
CP14 — Balance Due
The most common IRS notice. It means the IRS calculated that you owe money — either you didn’t pay your full balance when you filed, or there’s a new calculation showing an amount due. The notice states the amount owed and the due date.
What to do: if you agree, pay by the date shown. If you can’t pay in full, an online payment plan (installment agreement) is available through the IRS website. If you disagree with the amount, respond in writing with documentation.
CP2000 — Proposed Changes to Your Return
This is not an audit notice. It means the IRS received information from a third party — a bank, brokerage, or employer — that doesn’t match what you reported on your return. The IRS is proposing to change your tax based on that mismatch.
What to do: read the proposed changes carefully. If the IRS is right (you forgot to report income, for example), you can agree and pay the difference. If they’re wrong, respond in writing with your explanation and documentation. You typically have 60 days from the notice date.
CP11 or CP12 — Math Error Adjustments
CP11 means the IRS found a calculation error that results in more tax owed. CP12 means they found an error in your favor. These are usually minor mechanical corrections to arithmetic or credit calculations on your return.
What to do: review the proposed change. If you agree, you can do nothing (CP12) or pay the additional amount (CP11). If you disagree, you have 60 days to respond and explain your position.
LT11 or Letter 1058 — Final Notice Before Levy
This is a serious notice that arrives after multiple prior balance-due notices have gone unanswered. It means the IRS is prepared to begin collecting — seizing wages, bank accounts, or other property — if you don’t respond.
What to do: contact the IRS immediately to arrange a payment plan, submit an Offer in Compromise, or request a Collection Due Process (CDP) hearing. The deadline in this notice is not optional.
Audit letters
An audit letter notifies you that the IRS is reviewing specific items on your return. Most IRS audits are correspondence audits — conducted entirely by mail and focused on one or two items, such as a deduction or a credit. Full field audits (where an agent visits) are rare and typically involve business returns or large discrepancies.
What to do: read exactly what they’re asking for. Gather the documentation for those specific items. Respond by the deadline. For complex audits or large dollar amounts, a CPA or enrolled agent can represent you before the IRS.
How to respond to a notice
- Read the entire notice before doing anything. The critical information is the notice type, the amount involved (if any), and the deadline.
- Find the notice number in the upper right corner. Search irs.gov/notices for a plain-language explanation of what that notice means.
- Decide whether you agree or disagree with what the IRS says.
- If you agree: follow the payment or acknowledgment instructions in the notice.
- If you disagree: respond in writing before the deadline, explain your position, and include copies of supporting documents. Send by certified mail and keep copies of everything.
- Never ignore a deadline. Missing a response date can eliminate your right to appeal and result in automatic enforcement.
If you owe and can’t pay in full
Several options exist for taxpayers who can’t pay their full balance:
- Online Payment Agreement: most taxpayers can set up an installment plan on the IRS website without calling. Monthly payments, typically over 72 months or less.
- Offer in Compromise: if you genuinely can’t pay the full amount, the IRS may accept a lesser settlement. This process has specific eligibility requirements and takes time.
- Currently Not Collectible status: if paying would cause genuine hardship, the IRS can temporarily pause collection activity.
Interest and penalties continue to accrue during any installment plan, so paying the balance down as quickly as feasible reduces the total cost.
When to get professional help
For a simple CP14 balance-due notice with a small amount, most people can handle it on their own. For anything more complex — a CP2000 with a large proposed adjustment, a correspondence audit, any LT-series collection notice, or a return involving a small business — a CPA, enrolled agent, or tax attorney can represent you before the IRS and often resolve issues more efficiently.
What to do next
If you have a notice in hand, open it. Find the notice number in the upper right corner, look it up on irs.gov/notices to confirm what it means, and read the full notice to identify the deadline. The worst outcome is letting a deadline pass unanswered — even a brief written response indicating you received the notice and are gathering information is better than silence.
Further Reading
This article is for general educational purposes only and does not constitute tax advice. Tax rules change frequently and individual circumstances vary — consult a qualified tax professional or CPA before making decisions based on this information.