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Received an IRS Notice? Here Is What to Do Next

Published April 2026

Receiving an IRS notice is stressful, but it is not a reason to panic. Many notices are simple matters that are easily resolved. Understanding what different notices mean and how to respond correctly prevents problems from escalating. Here is what you need to know if you receive an IRS notice.

Do Not Ignore It

First and most importantly, do not ignore an IRS notice. Ignoring the notice will make the situation worse. The IRS has specific deadlines for responding, and missing those deadlines can result in additional penalties and serious consequences. Open all mail from the IRS and review it carefully.

Understand the Notice Type

Different notices serve different purposes. A notice of adjustment is the IRS informing you of a change to your tax return. A notice of tax due is a demand for payment. A notice of deficiency is more serious and gives you the right to a hearing before the IRS assesses additional tax. Understanding which type you received helps you know how to respond.

Common IRS Notice Types

CP14 notices are requests for payment of tax you may owe. CP15 notices inform you that the IRS made a change to your return and explains the change. A letter 566 is typically an examination (audit) notice. 1040ES notices are reminders about estimated tax payments.

Review the Details Carefully

Read the entire notice thoroughly. The IRS will explain the reason for the notice, the tax year in question, and what you owe or what action is needed. Most notices include a specific deadline for response. Note this deadline immediately.

Gather Supporting Documentation

If you believe the IRS made an error, gather documentation supporting your position. This includes receipts, invoices, bank statements, and any other records supporting your tax return. The better your documentation, the easier it is to resolve the matter.

Respond Timely

Always respond by the deadline stated in the notice. If you need more time, you can request an extension, but you must do so before the deadline. Failing to respond within the deadline deadline gives the IRS the right to assess the tax without your input.

When to Seek Professional Help

If the notice involves significant tax amounts, if you do not understand the notice, or if it relates to a complex matter, contact a CPA or tax attorney. Professional representation is especially important if the notice is for an audit, involves amendments, or relates to IRS enforcement actions.

Audit Examination Notices

If your notice is an examination notice, the IRS wants to review specific items on your return. Do not panic. Many audits are resolved simply by providing documentation. If the IRS requests documents, provide them promptly and completely. If you cannot locate documents, explain and provide what you have.

Payment Options If You Owe

If you owe taxes, the IRS offers payment options. You can pay in full, set up a payment plan, or request an installment agreement. Do not ignore a tax bill hoping it will go away. The IRS will continue to assess interest and penalties.

Appeal Rights

Many IRS notices come with the right to appeal the determination. If you disagree with the IRS assessment, you have the right to request an appeal through IRS Appeals. This is a separate process from the examination itself.

Prevent Future Notices

Working with a professional bookkeeper and accountant helps prevent many IRS issues. Proper record-keeping, accurate reporting, and timely filings reduce the likelihood of audits and notices. If you received a notice due to errors in your bookkeeping, now is the time to implement better systems.

IRS notices are usually fixable. Stay calm, respond promptly, provide documentation, and consider professional help if needed. The sooner you address the notice, the sooner you can resolve the matter and move forward.