Got a letter from the IRS? Here's what it means (and what to do)

Short answer: an IRS letter almost always just means the IRS has a question or a correction — most letters are not audits. The envelope is scary; the contents are usually routine. What matters is reading it promptly and meeting the response deadline it gives you. Here's how to tell what you're actually holding.

First, a scam check

Before anything else: the IRS initiates contact by regular mail through the U.S. Postal Service. Not by phone call, not by text, not by email or social media message. If someone calls claiming to be the IRS and demands immediate payment, that's a scam — hang up. The same goes for texts and emails with links. When a letter or message asks you to call a number or visit a website, verify it against the contact information published on IRS.gov before you respond.

The common letters, in plain English

• "We found a mismatch" (like CP2000). Something was reported to the IRS under your name — a 1099, a W-2, investment income — that doesn't match what your return shows. This is a proposal, not a final bill. You have the right to agree or respond with a correction.
• Balance due notices. The first one (often CP14) simply says the IRS believes you owe money. Penalties and interest grow the longer it sits, so it's worth handling early — payment plans exist.
• Identity verification letters. The IRS paused your return because something looked off. You verify your identity through official IRS channels and the return moves again. Annoying, but routine.
• Final notices. Letters with words like "Notice of Intent to Levy" (for example LT11 or Letter 1058) mean earlier notices went unanswered. These have hard deadlines and deserve same-week attention.

What to do, in order

1. Read the whole letter. The notice number is usually in the top-right corner — it tells you exactly what kind of letter this is.
2. Find the deadline. Every notice states a response date. Write it down.
3. If you're our client, call us as soon as you receive it — that's the whole job. Our audit protection (up to $1M) stands behind our work, but it only covers you if we hear from you right away. Once you call, we take it from there: we read the notice, prepare the response, and handle the IRS with you — but the sooner you call, the more options you have.
4. If you're not our client, the response is still on you — but don't face it alone. We don't take on IRS resolution work for returns we didn't prepare, so bring the letter to whoever prepared your return, or to a licensed professional such as an Enrolled Agent. And it's a fair lesson to take from the experience: a preparer who stands behind their work is worth having before the letter arrives, not after.

The bottom line

An IRS letter is a conversation starter, not a verdict. If you're our client, one call the day it arrives is all it takes — we'll handle the response together. If we didn't prepare your return, we can't resolve an existing IRS matter for you, but we'd be glad to prepare next year's return so you're covered from day one.