MJ Blog
What To Do When You Get an IRS Notice (And Why You Don’t Need to Panic)
There’s nothing quite like opening the mailbox, seeing an envelope with “Internal Revenue Service” printed on it, and feeling your stomach drop. Even people who are perfectly organized — even people who’ve done everything right — feel the same jolt of panic when they receive an IRS notice.
But here’s the truth:
Most IRS notices are not emergencies.
Many are routine.
And almost all can be resolved calmly and cleanly once you know what you're dealing with.
So before you lose sleep, take a breath. Then take the next right steps.
Why the IRS Sends Notices in the First Place
The IRS sends millions of notices every year, and most fall into just a few categories:
Something didn’t match
This is the most common scenario. The IRS receives a form (like a 1099 or W-2) that doesn’t match what was on your return. This triggers an automatic letter — not an accusation.They need more information
Sometimes a number wasn’t clear. A form didn’t show up. A math error correction triggered a follow-up. It’s often small.A payment was short, delayed, or misapplied
Your payment might have gone to the wrong tax year, posted late, or not matched the number on your return.They’re adjusting something on their end
This could be a refund recalculation or an update to a credit or deduction.They’re confirming identity
Identity-theft protections are much stronger now, and sometimes the IRS asks you to verify you’re… you.
In most cases, the notice is informational — not a threat.
The Most Important Thing: Don’t Respond Alone
The biggest mistake people make is replying to the IRS too fast or without guidance.
You may be tempted to:
Pay whatever number the letter shows
Call the IRS immediately
Send documents without context
Ignore it and hope it goes away
Those reactions almost always make things harder.
The IRS letter is talking to you — but you should talk to your financial professional first.
They’ll help you understand:
Whether the notice is accurate
Whether you actually owe anything
Whether the IRS made an error
Whether this is a simple fix or needs representation
What documentation (if any) needs to be provided
Whether you should respond at all
You are not meant to navigate this alone.
What Your Notice Actually Means
Every notice has a code (such as CP2000, CP14, or CP75). Those codes help identify the issue quickly.
Here’s a quick guide to the most common ones:
CP2000 — Underreported Income
This is the big one. It means the IRS thinks your income was higher than what you filed. This does not mean you did something wrong. Often, a vendor filed a form late or incorrectly.
CP14 — Balance Due
This shows a balance the IRS thinks you owe. It could be accurate… or it could be the result of a timing issue.
CP75 — Audit Documentation Request
The IRS wants proof related to a credit or deduction. Again, not a panic situation — just a request.
Letter 5071C — Identity Verification
This is part of fraud prevention. It’s not about your return being “wrong.”
Notice of Intent to Levy (LT11/CP504)
This is more serious and requires prompt action — but still not panic. Professionals resolve these daily.
Whatever the code, context matters more. And that’s where guidance helps.
What NOT To Do When You Receive an IRS Notice
A calm, correct response almost always leads to a clean resolution. But these common mistakes make things significantly worse:
Don’t ignore the notice. Deadlines matter.
Don’t call the IRS before reviewing the notice with a professional. You may accidentally agree to something you shouldn’t.
Don’t pay the amount automatically. The number may be wrong — sometimes by a lot.
Don’t send documents without explanation. The IRS reads what you send literally. Context is everything.
Don’t assume this means you’re being audited. Most notices have nothing to do with audits.
How the Process Usually Goes
Here’s what a calm, correct resolution typically looks like:
You contact your financial professional and share the notice.
They review your return and the IRS data to see what triggered the letter.
They determine whether the IRS is correct or incorrect.
They prepare the appropriate response — or advise that no response is needed.
If money is owed, they ensure the amount is accurate and the payment is sent to the correct tax year.
If the IRS is mistaken, they prepare a clear explanation and supporting documents.
Most cases resolve with a single letter. Some take a few rounds. But almost all are manageable.
Why Having Professional Support Makes a Huge Difference
IRS notices feel intimidating, but a professional sees these all the time. They know:
How to interpret the codes
How to match the notice to your return
Where IRS errors commonly happen
How to fix misapplied payments
How to communicate with the IRS clearly and effectively
When to escalate an issue
When not to respond at all
And most importantly… they know how to keep you calm and protected through the process.
If You Got a Notice, You Don’t Have to Solve It Alone
The most important thing you can do is reach out sooner rather than later.
If you’ve received an IRS notice — whether it’s confusing, alarming, or just unexpected — contact our firm. We’ll review it with you, explain what it means, and help you resolve it the right way.
No panic.
No guesswork.
Just clarity, support, and a clean path forward.
Let's Chat
You can count on us for professional, timely, and reliable tax services. If you’re ready to get started, just fill out this form and we’ll be in touch.