Receiving a letter from the IRS can feel stressful for both individuals and business owners. Fortunately, most IRS notices are routine and can often be resolved quickly when handled promptly and correctly. The most important thing to remember: don’t ignore IRS correspondence.
Why the IRS Sends Notices
The IRS sends letters and notices for many reasons, including, but not limited to:
- A balance due
- Changes made to a filed return
- Requests for additional documentation
- Audit or examination notices
Sometimes the notice is informational only, while other times the IRS is requesting a response or payment.
What To Do When You Receive an IRS Notice
1. Read the Entire Notice Carefully: Do not assume the IRS is automatically correct. Errors do happen.
2. Compare the Notice to Your Tax Records: Many notices can be resolved quickly by matching IRS information against your records.
3. Respond Promptly: Ignoring notices usually increases penalties and interest.
4. Pay Attention to Deadlines: Missing deadlines can limit your options.
Important Reminder: IRS Notices are usually sent by mail. The IRS generally initiates contact through mailed letters—not phone calls, texts, social media, or email. Be cautious of scams demanding immediate payment, gift cards, or threats of arrest.