Got a Letter from the IRS? Here's What to Do

Getting a letter from the IRS can trigger anxiety, but most notices are routine matters that are easily resolved. Here's your guide.

Step 1: Don't ignore it

This is the most important step. IRS notices have deadlines. If you miss the deadline, penalties increase and your options narrow.

Step 2: Read the notice number

Every IRS notice has a number in the upper right corner. Common ones:

CP14 — Balance due. The IRS says you owe money. Review the amount and pay if correct, or respond with an explanation if you disagree.

CP501/CP503/CP504 — Reminder/Final notices. Escalating reminders for unpaid balances. CP504 is the final notice before the IRS takes collection action.

CP2000 — Proposed changes. The IRS thinks your income doesn't match what was reported on information returns (W-2s, 1099s, K-1s). Review carefully — sometimes they're right, sometimes they have incomplete information.

CP575 — EIN confirmation. Good news! This confirms your EIN was assigned.

Letter 5699 — FinCEN BOI reminder. A reminder to file your Beneficial Ownership Information report.

CP215 — Penalty assessment. The IRS has assessed a penalty. This is common for late-filed Form 5472.

Step 3: Verify authenticity

The IRS communicates by mail, not email or text. If you receive an electronic communication claiming to be the IRS, it's likely a scam.

Verify by:

• •Checking the notice number against irs.gov
• •Calling the IRS at the number on the notice (verify it matches irs.gov)
• •Logging into your IRS online account to see if the notice appears there

Step 4: Respond appropriately

If you agree: Pay the amount or make the correction. Follow the instructions on the notice.

If you disagree:

• •Write a letter explaining why

• •Include the notice number and your tax ID

• •Attach supporting documentation

• •Send by certified mail to the address on the notice

• •Keep copies of everything

Step 5: Meet deadlines

Most notices give you 30-60 days to respond. Mark the deadline on your calendar. If you need more time, call the number on the notice.

Getting help

• •IRS website (irs.gov): Look up your notice number for specific guidance
• •Taxpayer Advocate Service: If you're unable to resolve the issue through normal channels
• •CPA or tax attorney: For complex issues, especially penalties exceeding $10,000

For foreign founders

If you receive a notice at your registered agent address, make sure your agent forwards it promptly. Delays in forwarding can eat into your response window.