How to Respond to an IRS Letter or Tax Notice

Did you receive a letter from the IRS? Don’t panic, you’re not alone.
Each year, the IRS sends millions of notices to taxpayers for a variety of reasons: some are simple corrections, others may involve a full audit. Knowing how to read, respond, and act can save you stress, penalties, and possibly money.

In this guide, we’ll break down what an IRS notice really means, what steps to take next, and how to handle a tax audit the smart way.

Why Did I Get a Letter From the IRS?

Getting a IRS Tax Audit or Letter doesn’t always mean you’re in trouble. Here are the most common reasons you might receive one:

• Correction of a math or input error
• Unreported income (e.g., 1099s the IRS received but you didn’t report)
• Missing documentation
• Notice of underpayment or overpayment
• Random audit selection

👉 The IRS usually sends letters by regular mail, never by email or phone. If someone calls or emails claiming to be the IRS, it’s likely a scam.

🧾 What Does the Letter Mean?

Each IRS notice has a notice number (e.g., CP2000, CP3219A, Letter 4883C) that helps you understand why they contacted you.

👉 Always read the entire letter carefully and follow the instructions. Don’t ignore it.

What to Do If You’re Being Audited

A tax audit is a detailed examination of your tax return. It may be done by mail (correspondence audit) or in person (field or office audit). Here’s what to do:

✅ Step-by-Step: How to Respond to an IRS Audit

1. Read the audit letter carefully – It will tell you what years are being audited and which documents are needed.
2. Gather documentation – This includes receipts, invoices, W-2s, 1099s, bank statements, mileage logs, etc.
3. Meet the deadline – Respond by the date on the letter to avoid additional penalties.
4. Stay organized and professional – Keep copies of everything you send or receive.
5. Contact a tax professional – Especially if the audit is complex or involves multiple years.
6. Remain calm and respectful – Auditors are just doing their job. Cooperation goes a long way.

💡 What Happens After You Respond?

The IRS will review the documents you submit and send one of the following:

• No change – Your return is accepted as-is.
• Adjustment – You owe more or are entitled to a refund.
• Penalty or interest added – If the IRS believes you underpaid.

If you disagree with the results, you can request an appeal through the IRS Office of Appeals.

🚨 What NOT to Do If You Get a Letter from the IRS

• ❌ Ignore it
• ❌ Delay your response past the deadline
• ❌ Call the number on a suspicious email or text message
• ❌ Send original documents (always send copies)
• ❌ Panic, most issues are solvable with proper response

🔗 Related Posts You May Need

• How to Use the IRS Refund Tracker Guide, Avoid Delays
• Why Is My Tax Refund Delayed? 10 Common Reasons
• Direct Deposit vs. Paper Check: Which Is Faster?

Receiving a letter from the IRS can be unsettling, but staying informed and responding the right way can make all the difference. Whether it’s a small correction or a full audit, your best defense is preparation and prompt action.

Don’t ignore the letter. Open it, understand it, and take the right steps, and if needed, seek help.

🔗 Want to see how all of this fits together?