IRS

Got an IRS Notice? What to Do First (and What Not to Do)

By Brandon Bradford, QuickBooks Certified ProAdvisor · Updated July 14, 2026

An envelope from the Internal Revenue Service has a special talent for ruining an afternoon. But here's the honest truth from the receiving end of many of these letters: the overwhelming majority are automated, routine, and resolvable — often without owing anything beyond what you expected. The danger isn't the notice. It's the drawer people put it in.

Step 1 — Find the notice code

Top right corner (sometimes top left): a code like CP14, CP2000, or CP503. That code tells you what this actually is:

• CP14 — the IRS believes you have a balance due. The first, calmest letter in the series.
• CP2000 — an income-matching notice: something reported to the IRS (a 1099 or W-2) doesn't match your return. It's a proposed change, not a bill — you can agree or dispute it.
• CP501 / CP503 / CP504 — escalating reminders of an unpaid balance. CP504 means an intent to levy is next; this one has real teeth and deserves same-week attention.
• Letter 4883C / 5071C — identity verification. Usually good news in disguise: the IRS paused something suspicious to check it's really you.

Step 2 — Verify it's genuine

The IRS initiates contact by postal mail only — never by text, email, or a call demanding gift cards or wire transfers. When in doubt, log into your IRS Online Account at irs.gov (type the address yourself) — your account shows any real balance and copies of many notices.

Step 3 — Circle the deadline, then work backward

Almost every notice has a respond-by window — often 30 or 60 days from the printed notice date. Everything else in this guide fits inside that window comfortably if you start now; almost none of it does if you start the week it expires.

Step 4 — Pull the records the notice is about

For a CP2000, that's the specific 1099s or W-2s in question and the matching lines on your return. For a balance due, it's the return itself and proof of payments. This is where clean books earn their keep — and where messy books turn a 30-minute response into a project. (Behind on those? Start here.)

Step 5 — Respond by the deadline, in writing, with proof

Agree, dispute, or partially agree — but do it through the channel the notice specifies, keep copies of everything, and if you mail it, use certified mail. If you owe and can't pay in full, respond and set up a payment plan; unanswered notices escalate on a schedule, answered ones almost never do.

Step 6 — Bring in help at the right altitude

Most notices need organized records and a clear, on-time response — that's exactly the work we do: we help you decode the notice, rebuild the numbers behind it, prepare or amend the returns involved, and put the response package together. For matters that call for formal representation before the IRS — audits and appeals, for instance — we work alongside credentialed Enrolled Agents and CPAs, so the right person argues your case with clean books already in hand.

Common questions

How do I know an IRS notice is real and not a scam?

The IRS starts contact by postal mail — never by text message, email, or social media, and it does not call demanding immediate payment by gift card or wire. Every genuine notice has a code (like CP14 or CP2000) in the top corner. You can verify any notice and see your real balance by logging into your official IRS Online Account at irs.gov — type the address yourself rather than clicking links.

What if the notice is right and I can't pay the amount?

Respond anyway — the IRS separates “can't pay” from “won't respond.” Most individuals who owe under $50,000 can set up an installment agreement online in minutes, and short-term payment plans exist too. Penalties and interest keep running on unpaid balances, but they run much slower once you're in an agreement and current on filings.

What if the IRS is wrong?

It happens — especially with CP2000 income-matching notices where a 1099 was duplicated or belongs to someone else. You respond by the deadline with a written explanation and documentation. Don't just refile or ignore it; answer the specific notice, through the channel it specifies, and keep proof of what you sent.

How long do I have to respond?

The notice itself says — commonly 30 or 60 days from the notice date. The clock starts at the date printed on the notice, not the day you opened it, so act on the day it arrives. If a deadline is impossible, calling the number on the notice to ask for more time is far better than silence.