I got a letter from the IRS. What should I do?
David TalleyUpdated December 22, 2025
Quick Answer
Don't panic—most IRS letters are routine. First, open it and read carefully. Note any deadlines (usually 30-60 days). The letter type (CP2000, CP14, etc.) tells you the issue. Many are simple fixes: a missing form, a math error, or an automated adjustment. Respond within the deadline. If it's serious (audit notification, large balance due), get professional help immediately.
Step one: breathe. A letter from the IRS is not automatically a crisis. Most are completely routine.
Common letter types and what they mean:
CP2000 - "We noticed something doesn't match":
The IRS received information (1099, W-2) that doesn't match what you reported. Often it's a missing form or an innocent discrepancy. You can usually respond by mail with documentation.
CP14 - "You owe money":
A balance due notice. Could be from a filed return, or from an adjustment they made. Review the amount, and if correct, set up payment or a payment plan.
CP501/CP503/CP504 - "Pay now" escalation:
These get progressively more serious. CP504 is the one that can lead to levy action. Take these seriously.
LT11 or Letter 1058 - "Final Notice of Intent to Levy":
This is serious. You have 30 days to respond or request a Collection Due Process hearing. Don't ignore this one.
Audit notice (Letter 566 or 4564):
You're being examined. This requires professional representation. Do not handle an audit yourself.
What to do with any letter:
1. Note the notice type (top right corner)
2. Note the deadline (usually 30-60 days from the date of the letter)
3. Determine if you agree with their assertion
4. If yes, follow their instructions
5. If no, respond in writing with documentation before the deadline
When to get help:
- Any audit notification
- Balance due over $10,000
- Threats of levy or lien
- Anything you don't understand
The IRS is not actually trying to ruin your life. But they operate on deadlines. Miss a deadline and your options narrow fast.
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