How to Respond to an IRS Letter, Step by Step

Look for the notice or letter number in the upper or lower right corner — CP14, CP2000, CP504, LT11, Letter 1058, and so on. The number tells you what kind of letter it is: a bill, a reminder, a proposed change to your return, a levy warning, or a request for information. Our IRS notices guide explains the common collection notices.

Every IRS notice has a response or payment date. Some deadlines carry legal rights: 30 days to request a Collection Due Process hearing after a final notice of intent to levy, 90 days to petition Tax Court after a notice of deficiency, and 21 days to pay a CP14. Write the deadline on your calendar the day you open the letter.

Don't assume the notice is right — and don't assume it's wrong. Compare it with your return, your payment records, and your IRS account transcript, which shows every assessment, payment and penalty. You can download transcripts in minutes from your IRS Online Account; see how to get your IRS transcripts.

• You agree and can pay: pay through IRS Direct Pay or your Online Account by the due date.
• You agree but can't pay in full: apply for a short-term plan (up to 180 days, no setup fee) or a Simple Payment Plan if you owe $50,000 or less. Online setup costs $29 with automatic withdrawals.
• You disagree: respond in writing using the response form included with the notice. Explain why, attach copies (never originals) of supporting documents, and include the notice number and your taxpayer ID on every page.
• You can't pay anything: call the number on the notice and ask about Currently Not Collectible status or an Offer in Compromise.

Have the notice, your Social Security number, a copy of the return, and a realistic monthly budget in front of you. Be direct: "I received notice [number] for tax year [year]. I'd like to set up a payment plan" — or "I disagree with this balance because…". Ask for the representative's name and ID number, write down what was agreed, and request written confirmation. If you're asked for financial information, you can ask for time to gather it.

Send written responses by certified mail with return receipt, or upload through the IRS document upload tool if the notice provides a link. Keep a copy of everything you send. The IRS can take 30 to 60 days or more to process correspondence; if you get another notice before then, call and confirm your response was received.

• Sending original documents instead of copies.
• Responding after the deadline without asking for an extension.
• Paying a balance you dispute without first checking your transcript.
• Ignoring a CP2000 because "it's just a proposal" — it becomes a bill if you don't respond.
• Calling without a budget, then agreeing to a monthly payment you can't keep. A defaulted plan costs a $6 reinstatement fee online and can restart levy action.

Consider an enrolled agent, CPA or tax attorney if you received a notice of deficiency, a levy notice, or a Trust Fund Recovery Penalty letter; if you owe more than $50,000; or if you have several unfiled years. Professionals can represent you with Form 2848 so you don't have to speak to the IRS directly. Before hiring a company, read how to choose a tax relief company.

When you know where you stand, the next step is choosing a resolution. Our tax settlement calculator asks 8 questions about your balance, income and situation and shows which IRS programs — payment plan, Offer in Compromise, Currently Not Collectible or penalty abatement — your answers point toward. It's free and doesn't affect your credit.