For many taxpayers, receiving a letter from the Internal Revenue Service (IRS) immediately spells trouble. Without even seeing what’s inside, they assume the worst. However, this shouldn’t be the case, as not every notice from the IRS means you have an audit, a penalty, or some other form of legal trouble to tend to.
In reality, the IRS initiates contact with taxpayers for various reasons, and many of these letters are sometimes routine or informational. This could include sending you a letter to communicate a discrepancy on your tax return, inform you of a balance due, or even ask a question about your tax return. An IRS letter typically arrives in a white envelope with the IRS logo, includes a notice or letter number, and clearly states the reason for contact, such as taxes owed or a request for information. If you receive an IRS letter, don’t panic. Review it carefully and respond to it as quickly as possible.
Not sure how to respond to an IRS notice? Let our lawyers at Victory Tax Lawyers take over. With over a decade of experience handling audits, notices, and tax disputes, we know how to secure the best outcomes for our clients. Contact us directly today to speak with a licensed tax attorney.
This article will walk you through what an IRS letter typically looks like, why you might get one, and, most importantly, what to do next when you receive one.
What Does an IRS Notice Look Like?
Fake IRS letters are not uncommon. Every day, bad actors try to falsify correspondence from the IRS by sending scam letters to unsuspecting taxpayers. This is why you need to be able to identify what a legitimate IRS letter looks like.
How to Spot a Legitimate IRS Letter
Real IRS letters are formal, direct, and always include the official IRS contact information. Here are things you should expect if you’ve received a letter claiming to be from the IRS:
- Official IRS logo and letterhead
- Notice or letter number in the top right corner (e.g., CP2000, LT11, CP14)
- Tax year(s) referenced
- Taxpayer’s name and partial Tax ID number
- A clear explanation of the issue, request, or account update
- Instructions on how to respond or make payments
- IRS taxpayer assistance contact information, including phone numbers and mailing addresses, to enable you to speak with IRS representatives if the need arises. If it’s a valid letter from the IRS, then any contact information included should be accessible on its website. Meanwhile, the Official IRS Website ends with .gov. Anything outside this is fake.
In contrast, fraudulent letters often contain vague language, generic threats, or use unofficial shipping services to appear legitimate. If you’re unsure about a notice’s authenticity, a tax professional can help verify it and guide your next steps.
What Does an IRS Audit Letter Look Like?
Similar to a regular IRS letter or notice, an IRS audit letter follows the same general format; however, this time, its purpose is to examine or audit your tax return. Here’s what to look for:
- As with a regular IRS letter, it should contain the official IRS logo and letterhead, the notice number, your tax information, and a summary of the issue.
- A clear statement that you’re being audited. It may use phrases like “Examination Notice” or “We are auditing your tax return.”
- List of documents or items under review, such as specific deductions, income sources, or credits.
- Strict response deadline, often with instructions for submitting documents or attending an in-person meeting.
- IRS agent contact information, which may be provided for follow-up or scheduling.
If a taxpayer’s account has been selected for audit, the IRS will directly notify them by mail. The IRS has said it will never initiate an audit by telephone. So ignore scam callers pretending to be from the IRS.
Meanwhile, legitimate audit notices should be treated with caution. You’re better off hiring a tax professional to represent you during an audit. If you’re worried about the extra cost, remember that a tax attorney will always be worth it if it increases your chances of a successful outcome.
Common Reasons You Might Receive an IRS Letter
As we already mentioned, the Internal Revenue Service may reach out for several reasons. Sometimes, it’s a minor issue that just needs to be addressed to sort things out from the get-go; other times, it’s something urgent that needs fixing right away to prevent it from escalating. Below are the most common types we see at Victory Tax Lawyers.
1. Tax Return Issues
Tax return issues are perhaps the number one reason topping the list for why you’d be notified by the IRS. If the IRS finds errors, mismatched information, or missing forms in your return, it will usually send a notice. It could have been that perhaps you made a math error that changed your tax refund amount, you sent out your return but forgot to include Form 1099 or W-2, there was a discrepancy between what you reported and what a third party (like your employer or bank) submitted, etc.
Most of these issues come with a notice like CP2000, which outlines the issue and the proposed changes required on your tax return or a related notice. While some of the issues can be resolved quickly without potential pitfalls, others may very well lead to penalties once ignored.
2. Audit Notification
You may receive a notice informing you that your return is under review or selected for audit. After a penalty notice, an audit notice is usually one of the most dreaded letters for most taxpayers. However, the very first approach to your interaction with them should never be panic.
It’d interest you to know that sometimes the IRS chooses to randomly audit the returns of taxpayers as part of its quality control measures and National Research Program. Of course, some other times, it’s a triggered audit arising from red flags they may have noticed on your return, such as excessive deductions, round-number entries, or inconsistent reporting.
If the notice states that you’re being audited or examined, don’t panic; however, don’t try to handle it alone. Get a tax professional on board so that your rights can be protected. Usually, an audit will require you to present supporting documentation and, in some cases, schedule an in-person or correspondence audit.
3. Balance Due
If the IRS believes you owe money, you’ll receive a letter requesting that you make payment. This notice is usually sent when you have underpaid taxes, you’ve accrued penalties and interests from your back taxes, or you have previous amounts due that you haven’t yet resolved. The IRS doesn’t joke with its payments, so this is one of the IRS notices you want to treat as urgent.
A common notice in this category is Notice LT11, Notice of Intent to Levy. This warns you of the IRS’s intention to levy if your balance isn’t paid. If you ignore Notice LT11, the IRS then sends CP90, which is the Final Notice of Intent to Levy. This is far more serious and notifies you of their plan to enforce a levy, and also highlights your appeal rights to a hearing. If you’ve received either of these notices, time is critical. You have only 30 days to respond to or appeal both notices.
4. Refund Adjustments
If your expected refund is adjusted, the IRS will notify you by letter. Your expected tax refund may have been adjusted for several reasons; it may have changed due to incorrect income reporting on your end, you may have misapplied your credits or deductions in your return, or you were owing other debts (e.g., back child support, student loans) and your refunds were applied to offset those tax obligations.
You’ll usually receive a CP12 or CP49 notice explaining why your refund was changed and what to do if you disagree.
5. Identity Verification
If the IRS suspects identity theft or fraud, it may ask you to verify your identity before processing your return or issuing a refund. This may come as Letter 5071C, which is commonly used to request online or phone verification. In some cases, they may send a letter requesting that you appear in person at a Taxpayer Assistance Center.
When the IRS requests that you verify your identity, they aren’t necessarily accusing you yet. Still, you want to respond quickly and handle with care to avoid refund delays or complications.
6. General Information or Updates
Sometimes, you’re sent an IRS letter simply because the agency wants to pass on some general information or an update regarding your account or its operations. This means that notices could just be the IRS confirming a change in your account status, informing you of your eligibility for a new tax credit or refund, providing updates on new tax laws or credits that apply to you, or letting you know that a previous issue has been resolved.
Even if the notice seems benign, you don’t want to ignore it. It could contain a deadline or hidden fine print that affects your standing.
What to Do After Receiving an IRS Letter
By now, we’ve made one thing clear: getting an IRS notice doesn’t always mean you’re in trouble, particularly if you’ve been exercising due care towards your tax obligations. Nonetheless, you want to handle every letter from the IRS properly. Here’s a step-by-step breakdown of what to do when you receive a letter from the IRS:
1. Don’t Panic — But Don’t Ignore It Either
While most IRS letters are routine, ignoring them can lead to penalties, interest, or missed opportunities to correct errors. Routine never means irrelevant to the IRS. We’re trying to say that the IRS will never contact taxpayers if the information contained in the notice isn’t relevant to them. Even if you believe the letter was sent in error, it’s important to respond.
2. Read the Entire Letter Carefully
Take the time to review the letter or notice carefully. Most IRS letters and notices are about your tax accounts or Federal tax returns. If you don’t hastily gloss over it, you should be able to identify from the letter:
- The reason for the notice (e.g., a mismatch in income, missing form, or change to your return)
- What the IRS is asking you to do
- Any balance due or refund change
- Your deadline for response or action,
- And finally, the notice number, usually in the top right corner of the notice (e.g., CP2000, LT11). The notice or letter number is very important because it tells you the kind of issue you’re dealing with and how urgent it is.
3. Mark the Deadline and Start Preparing
IRS letters often give you 30 days or less to respond. Missing that window could mean forfeiting your right to dispute or appeal and immediate collections action in some cases (e.g., if it’s a Notice of Intent to Levy). Don’t wait until day 28. As soon as you understand the issue, start gathering documentation to support your case.
4. Gather Relevant Documents
You’ll need to review and possibly send:
- Your original tax return(s)
- Any IRS transcripts or correspondence
- Income documents (W-2s, 1099s, etc.)
- Receipts or proof for deductions and credits
- Notices or letters previously received (if applicable)
Being organized is your best defense. After you’ve gathered your documents, compare the IRS’s claims with your records. If the IRS says you underreported income or claimed an invalid deduction, go back to your files and cross-check everything.
If you made an honest mistake and agree with the change, there’s often no need to respond unless a balance is due or the letter states otherwise. However, if you disagree, you can always dispute it.
5. Follow the Instructions Exactly
Take the actions requested by the IRS in the notice. This could involve making a payment if they’ve claimed you owe taxes and you agree to it, or providing details or documents in the case of questions about your return. The letter will generally let you know what forms or information to include.
You generally don’t need to reply to a notice unless the IRS specifically requests that you do so, as some notices are simply for your records. If you need to respond, the letter will instruct you on how to do so, specifying whether to respond by mail, online, or phone.
6. Contact the IRS (If Necessary)
There is usually no need to call the IRS; however, if you decide to do so, perhaps because something is unclear and you need clarification, you can call the IRS using the number in the upper-right corner of the letter.
Make sure to have a copy of your tax return, your Social Security Number (or Tax ID), a copy of the letter, your original tax return, and any relevant supporting documents with you when calling. That said, remember: IRS agents are not on your side. They represent the government, not you. For anything more than basic clarification, consider professional representation.
7. Get Professional Help
If the issue is complex, involves a high balance, or you simply want to protect your interests, it’s wise to bring in an expert. A tax attorney or qualified CPA can help you draft formal responses to the IRS, represent you in cases of disputes or appeals, negotiate penalty relief or payment plans, and stop enforcement actions like levies or liens.
When it comes to litigation cases, though, a tax attorney is often preferred over a CPA. We’ve mentioned this before. You don’t have to agree with the notice. You can always dispute it. To do so, follow the instructions in the notice to dispute what the notice says. Ensure that you include all necessary information and documents for the IRS to review when considering the dispute.
8. Keep a Copy of Everything
You want to keep a copy of every document relevant to your case, including the original IRS letter, any documents you sent in response, adjustment notices if the IRS had taken action on your account, and the confirmation of mailing or submission (certified mail or IRS account screenshots). You should retain these for at least three years, or longer if the issue isn’t fully resolved.
When to Be Concerned About an IRS Letter
Most IRS letters are procedural. But some signal deeper issues—and the difference isn’t always obvious at first glance. Here’s when an IRS letter deserves immediate attention:
- The letter claims you owe a large or unexpected amount – If the notice says you owe a balance you weren’t anticipating, especially one you can’t trace to a return or tax year, don’t brush it off. There may be a reporting error, a misapplied payment, an identity theft issue, or the IRS may be right, you indeed have unpaid taxes. And if that’s the case, the interest is most likely already compounding.
- You’re facing tight response deadlines – Many IRS letters come with strict deadlines, typically 30 days or less. Missing them can eliminate your right to appeal or dispute, result in automatic penalties, and in extreme cases trigger collection actions. If you’re already short on time, consult a professional immediately. They can help stop the clock by filing protective actions or formal responses.
- You’ve received multiple follow-up notices – If the IRS sends you a second or third letter on the same issue, it means the IRS considers the matter unresolved. Every notice sent on the same issue escalates it, which could eventually result in escalating collection actions or even referral to a Revenue Officer. Repeated letters are not a glitch or error. The IRS doesn’t send reminders without consequences.
- The IRS is threatening enforcement actions – Language about levies, wage garnishment, asset seizure, or tax liens is serious. By the time the IRS sends these notices, such as notice LT11 or a Notice of Intent to Levy, they’re not just warning you. They’re preparing to act.When threats of enforcement actions are in the picture, it’s not time to negotiate on your own. You need legal representation that can assert your rights, propose solutions, or stop the process through appeal or resolution.
- The letter seems suspicious or aggressive – The IRS is predictable in their language: formal, professional, brief, and unaggressive. If you get a letter claiming to be from the IRS, but it comes as a text message, that’s a red flag because the IRS will never send you text messages.If the tone is aggressive, they’re using threatening language, poor grammar, or demanding immediate tax payments via unusual methods (e.g., gift cards or wire transfers), don’t fall victim, it’s most likely a scam. You want to remain vigilant at all times so that bad actors don’t prey on your vulnerability.
- You’re being audited – If the letter uses words like “examination,” “audit,” or “review of reported items”, then your return is under scrutiny, and it’s time to consult a tax professional. Audits, whether expansive or limited, demand an increased measure of thoroughness and carefulness when handling to prevent escalating the situation.
Red Flags of IRS Scams
Scammers may use official-looking logos, urgent language, and fear tactics to try to deceive you. But if you know what to look for, it’s easier to spot a fake. Here are red flags that indicate you may have been targeted by malicious actors:
1. Demands for Immediate Payment Through Unusual Methods
Urgent wording and language demanding you to make immediate payments through odd channels, such as wire transfer, gift cards, money orders, or crypto, is a characteristic of scam IRS letters. The IRS never asks for payment through these methods.
2. Unusual Email or Delivery Method
The IRS does not email or text taxpayers about official notices. They directly deliver notices straight to your mailbox through the United States Postal Service. This means if you received a message from a third-party delivery service, it’s most likely not the IRS.
3. Fake IRS or Government Websites
Scam websites often use domain names that look similar to government sites to mislead users. They may also include misleading words like “official” or “government” to appear legitimate.
Did you notice the subtle misspellings and non-government domain endings? Note, legitimate IRS websites always end in .gov. If a website ends in .com, .org, or anything else, it’s not an official IRS site.
4. Mentions Agencies the IRS Doesn’t Use
Names like “Federal Collection Bureau” or “IRS Payment Services Division” are not affiliated with the IRS. If the letter references an agency you’ve never heard of, it’s most likely scammers trying to play a fast one on you.
How to Verify a Real IRS Letter
If you’re uncertain whether your letter is real, here are four steps to take:
- Check the Notice Number
Every notice has a notice number (e.g., CP14, CP2000, LT11). You can easily locate it at the top right corner of the notice. Alternatively, you can look it up on the IRS notice index or consult a tax professional.
- Visit Your IRS Online Account
Go to irs.gov and log in to your secure account. If the IRS sent you a real letter, you may find a digital version or related update in your account records.
- Call the IRS Directly
If you don’t see the letter in your search or it looks suspicious, don’t hesitate to call the IRS at their official phone number: 800-829-1040. Never call any number listed in an email or text that seems suspicious.
- Consult a Tax Attorney
If you’re confused, worried, or dealing with a letter that seems aggressive or complex, get a tax professional to help. A tax attorney can help you understand what’s real and what’s not and advise you on what to do next.
IRS Letter Got You Stressed?
You’re not alone. Getting a letter from the IRS can trigger anxiety, but it’s not always a sign of trouble. In fact, millions of IRS notices are sent out each year. If you currently have one on your desk, the most important thing is to verify its authenticity, review it, and then respond appropriately within the acceptable timeframe given.
If you’re unsure about anything, get expert help. At Victory Tax Lawyers, we’ve helped clients save over $91 million and counting! Resolving difficulties with the IRS is what we do best. Don’t go it alone, contact us today or visit our office to speak with a seasoned expert.
FAQs
We’ve answered some of the most common questions clients ask us about IRS notices, so you can feel more informed and prepared.
How Long Should I Keep IRS Letters?
You should keep IRS letters and notices for at least three to seven years, depending on the type of document and your tax situation. If the letter is related to a filed tax return, keep it for as long as the return is relevant, typically, three years from the date you filed or two years from the date you paid, whichever is later.
Can the IRS Send Letters via Email?
No. The IRS does not send unsolicited emails. If you receive a message claiming to be from the IRS, especially one demanding immediate payment or threatening action, it’s likely from scammers. Official IRS notices are only sent through the U.S. Postal Service.
What Should I Do if I Lost My IRS Letter?
Don’t panic. Start by checking your IRS online account, where you may find a digital copy of the notice. You can also request a transcript or call the IRS at 800-829-1040. You should act quickly if the notice has to do with a balance due or audit.
Is Every IRS Letter Related to an Audit?
No, most IRS notices aren’t audit-related. Audit notices would usually clearly state it in the messaging by either referencing an “examination” or “audit.”
How Soon Do I Need to Respond to an IRS Notice?
Typically, IRS notices include a deadline. This is often 30 days from the date of the letter.
