Got an IRS letter? Do these four things first

Step 1: Make sure it's really the IRS

The IRS does not start contact by email, text message or social media to demand payment or ask for personal or financial information. It doesn't call threatening arrest, and it never asks for gift cards or cryptocurrency. A real notice arrives by U.S. mail, on IRS letterhead, addressed to you.

If you have any doubt, don't use the phone number printed on a suspicious letter. Sign in to your IRS online account at irs.gov, where real notices and balances show up, or call the number listed on irs.gov itself.

Step 2: Find the notice number

Look in the upper or lower right corner for a code like CP2000 or LT11. That code tells you what kind of letter it is. These are the ones we see most:

Notice	What it means
CP2000	Income reported to the IRS (a 1099 or W-2) doesn't match your return. It proposes a change; it isn't a bill yet.
CP14	You have a balance due. The first bill.
CP501, CP503	Reminders that the balance is still unpaid.
CP504	Notice of intent to levy. The IRS can take your state refund and begin collection.
LT11 or Letter 1058	Final notice of intent to levy, with your right to a Collection Due Process hearing. Treat it as urgent.

Step 3: Write down the deadline

Every notice gives you a date to respond by, often 30 days from the notice date. Put it on the calendar. Answering on time keeps your options open: disagreeing, asking for more time, or setting up a payment plan. Missing it lets the IRS move to the next letter in the sequence, and the later letters come with fewer choices.

A notice is the IRS asking a question. Answer it on time and most stay small.

Step 4: Compare before you pay

Pull out the return the notice refers to and check it line by line against what the IRS says. With a CP2000, the missing income is often already on the return in a different place, or it's a sale where the IRS counted the full proceeds and didn't know what you paid for the stock. Paying first and asking later can mean paying tax you don't owe.

If the notice is right, the answer is usually a payment or a payment plan. If it's wrong, the answer is a written response with documents. Either way, it goes in before the deadline.

What not to do

• Don't ignore it. Notices escalate on a schedule, and interest keeps running.
• Don't call the IRS unprepared. Anything you say about the year can open more questions.
• Don't throw away the envelope. The postmark can matter for deadlines.
• Don't send original documents. Send copies, and keep a copy of everything you mail.