IRS Letters: Why You Should Not Ignore Them

An official letter from the Internal Revenue Service can make your stomach drop. Many people put the envelope aside, hoping the problem will go away on its own. In most cases, it does not. A letter that is left unanswered can lead to more notices, added interest and penalties, and fewer options later. This guide explains why it helps to open and read every IRS letter promptly, and what to do next.

This is general information, not advice about your specific tax situation.

Why IRS letters arrive

The IRS sends letters for many reasons. Some are routine, such as a notice that a return was processed or that a payment was received. Others are more serious. A letter may ask for more information, propose a change to a return, announce a balance due, or explain that the agency has a question about a figure reported by a bank or employer.

The IRS also mails letters for reasons that have nothing to do with a mistake on your part. A name or number may not match its records, a form from a payer may not have been matched, or a notice may be a reminder about a deadline. Reading the letter is the only way to know which situation applies.

Check the response date

Most notices include a date by which you must respond, pay, or ask for more time. This date is one of the most important parts of the letter. Mark it on a calendar as soon as you open the envelope. If you need more time, call the phone number printed on the notice before the date passes. Asking early usually gives you more options than asking late.

Do not assume that the date is only a suggestion. Missing a response date can close off certain choices, such as an appeal, a request for a different payment arrangement, or a challenge to a proposed change.

Learn what the letter is about

Start with the first paragraph. It usually names the tax year and states the reason for the letter. Then look for the amount, if one is listed, and whether it is a balance due or a proposed change. The IRS guide on understanding your notice or letter explains many common notice types and what each one generally asks you to do.

If the letter says something you do not understand, that is normal. Write down the notice number and the tax year. You will need these details if you call.

Compare the letter with your records

Once you understand the reason for the letter, compare it with your own records. Pull the return for the year in question, along with any W-2 forms, other income statements, and receipts that support the numbers. Sometimes a notice is correct, and the issue is simply a payment that was not credited. Other times, a form from a bank or employer does not match what you reported. Your records will help you decide whether to accept the change, respond with an explanation, or request more time.

Keep copies of everything you send. Send documents in a way that gives you proof of delivery, and include a short cover letter that identifies yourself, the tax year, and the notice number.

Do not panic, but do not wait

It is understandable to feel stressed. A letter is not a court order, and most notices can be answered. The safest approach is to take a few steps right away: read the letter, note the date, gather the documents, and decide whether you can respond on your own or need help.

Waiting usually makes the problem harder to solve. Interest may continue to build on unpaid amounts. Penalties may be added. The IRS may move to a more formal collection process if the issue is not addressed. None of this means that every letter is a crisis, but the pattern is a good reason to act early.

Get help when you need it

You can call the IRS number on the notice to ask questions. If you are not comfortable handling the issue alone, you may want to consult an enrolled agent, a certified public accountant, or a tax attorney. The Taxpayer Advocate Service is an independent organization within the IRS that can help when you have a tax problem you cannot resolve on your own.

If you hire a professional, ask how they will communicate with the IRS, whether they will request your records directly, and what they expect from you. Check any attorney's license through the state bar, and read any engagement agreement carefully before you sign. The site's tax law practice page describes the kinds of lawyers who handle these matters.

Watch for scam letters and calls

Scammers sometimes send letters or make calls that look like they come from the IRS. The IRS tax scam alerts warn that impersonators demand payment “now or else” and threaten arrest or deportation. If something feels wrong, do not use the phone number on the message. Look up the number on an official IRS notice or on the IRS website instead.

What to do if you cannot pay

If the letter shows a balance you cannot pay in full, do not ignore it. Ask about payment options before the due date. The IRS offers several arrangements, including payment plans for many taxpayers. You can review the IRS payment plan information to see the general options. Ignoring the balance does not make it smaller.

Frequently asked questions

Do I have to respond to every IRS letter?

You should read every letter. Some need only a reply, some need a payment, and some need no action at all. The letter itself will explain what the IRS is asking.

What if I think the IRS made a mistake?

Keep your records, respond in writing before the date on the notice, and explain why you believe the figure is wrong. If you disagree with the result, ask about your appeal rights.

Can a letter from the IRS be fake?

Yes. Compare any letter with the IRS notice guide and call the number on an official IRS document if you have doubts.

Should I call a lawyer when I get a letter?

Not every letter requires a lawyer. A lawyer may be worth speaking with if the amount is large, the notice mentions an audit or criminal concern, or you are not sure how to respond.

Related: Browse guides on legal topics and tax lawyers by practice area.

This page is general information, not legal advice. Laws change and every case is different — talk to a licensed attorney or enrolled tax professional about your situation.