Got an IRS notice? How to read it and what to do first

This guide is general information, not advice for your notice. IRS pages change, and each notice has its own rules. The facts here come from IRS pages checked on October 21, 2026. Follow the instructions printed on your own letter first.

Where do I find the notice number?

Look in the right corner of the letter. The IRS says: “You can find the CP or LTR number on the right corner of the letter.” A CP notice is a computer-generated notice. An LTR is a letter. The number tells you what the IRS wants and which IRS page explains it.

Write the number down, along with the tax year and the reply date. Then search for the number on IRS.gov. The IRS has a notices and letters page that explains each type. Keep the envelope. It shows the date the IRS mailed the notice.

The IRS gives the first rule for any notice: “Review it carefully and keep it for your records. If we ask you to respond, act by the due date.” Read all pages, even the back. Many people stop at the first page and miss the response form.

What kinds of notices exist?

The IRS sends notices for several reasons. It may say you owe a balance, that your refund changed, that it has a question about your return, that it needs to verify your identity, that it changed your return, or that it is delayed in processing. The table lists common ones and a first step for each.

The glossary explains the IRS CP2000 notice and the IRS audit. An exam letter is different from a CP2000, and the replies differ too.

Is a CP2000 a bill?

No. The IRS states on its notice page: “This notice isn’t a bill and your response may be required.” The IRS Topic 652 says it more fully: “The CP2000 isn’t a bill, it’s a proposal to adjust your income, payments, credits, and/or deductions.”

The notice comes from a match. The IRS compares what employers, banks and other payers report on forms such as W-2 and 1099 with what you reported. When a gap appears, it sends a CP2000. The gap may raise your tax, lower it, or change nothing. The notice shows the amounts you reported, the amounts the payer reported, and the change it proposes.

Check the payer’s name and amount against your own forms. Errors happen on both sides. A payer may have reported wrong, or you may have left out a form. If a form came late or a payer issued a corrected one, that explains the gap.

What is the reply date, and what if I miss it?

The reply date is printed on the notice. For a CP2000, the IRS suggests that you respond “within 30 days of the date of the notice or 60 days if you live outside the United States for a quick resolution.” Use the date on your own notice.

If you do not reply, the next step can be a stronger notice. The IRS says for a CP2000: “If we don’t hear from you by the response date on the notice, we’ll send you a Statutory Notice of Deficiency.” That notice has its own deadline for challenging the proposed change. The notice itself gives that date, so read it the day it comes.

Replying on time also protects your options. The IRS explains: “To guarantee your appeal rights, reply by the due date.” If you need more time, ask in writing before the date, through one of the reply options on the notice.

How do I agree, disagree or partly agree?

Mark your choice on the response form and send it back by the reply date. The steps differ a little for each choice.

1. If you agree, sign and date the response form. Both spouses sign if you filed jointly. Pay the amount or ask for a payment plan.
2. If you disagree, mark that on the form, and add a signed statement that says why. Attach copies of documents that support you, such as a corrected form from the payer.
3. If you agree in part, mark the part you dispute and explain it. Pay the part you accept if you can.
4. If you agree and also have other income, credits or costs to report, the IRS says to file an amended return, Form 1040-X, and write “CP2000” at the top.

You can reply through the IRS document upload tool, by fax, or by mail to the address on the notice. Use only the channels on your own notice. Keep a copy of everything you send, plus proof of the date.

Who can speak to the IRS for me?

A person you authorize can. Form 2848 is the tool. The IRS says: “Use Form 2848 to authorize an individual to represent you before the IRS.” The person must be eligible to practice before the IRS, and CPAs generally are. The Form 2848 power of attorney entry explains the form.

The form names the person, the tax matters and the tax years. It does not give away all your rights. You can revoke it. It also lets your representative receive your confidential tax information, so choose with care.

A CPA can read the notice, compare it with your records, draft the reply and send it. The result still depends on the facts and on how the IRS views the documents. No one can promise an outcome. To see how Wallace CPA, PLLC describes its work on notices, read the IRS problem services page.

What if I owe money and cannot pay it all?

Still pay by the due date what you can. The IRS says: “Even if you can’t pay the full amount you owe, pay by the due date.” Interest accrues until the balance is paid, and paying sooner can reduce interest and penalties.

If you cannot pay in full, the IRS offers payment plans. The guide on IRS payment plans and offers in compromise explains the options. An installment agreement is the usual plan name. If a late filing or payment created a penalty, you may be able to ask for relief. Read the post on how to ask the IRS to remove a penalty.

How can I tell a real notice from a scam?

Check it against IRS.gov. The IRS says that if the letter does not appear in your search or looks suspicious, call 800-829-1040. Real notices carry a number you can look up. They do not ask you to buy gift cards, send cryptocurrency or share a password by email or text.

If a letter looks real, do not use a phone number or link printed on it until you have confirmed it against IRS.gov. When in doubt, go to the IRS site on your own. Never give a full Social Security number or bank login to a caller you did not expect.

Next step

If you want a CPA to look at a notice with you, read about IRS problem services, call Wallace CPA, PLLC at (877) 682-1171, or use the contact form. Do not wait until the last day of the response period. This guide is general information. Talk to a CPA about your own situation before you reply to the IRS.