An IRS letter arrived. Here's what to do today

The envelope is unsettling. The contents usually aren't as bad as the envelope. But there is one thing you cannot do with it, and that is nothing.

Open it and find the notice number

Top right corner, something like CP2000 or CP14 or 5071C. That code tells you exactly what this is:

• CP14 — you owe a balance. The most common notice the IRS sends.
• CP2000 — income reported to the IRS doesn't match your return. This is a *proposal*, not a bill, and it is frequently wrong or incomplete.
• 5071C — identity verification. Someone filed a return in your name, or the IRS wants to confirm you filed yours.
• CP501 / CP503 / CP504 — escalating reminders of an unpaid balance. The 504 is the one that signals collection action.
• Letter 525 / 566 — examination. This is an actual audit.

Find the deadline

It's printed on the notice, usually 30 days from the date at the top. That window is the whole game. Responding within it keeps every option open; missing it converts a proposal into an assessment you then have to fight.

Don't pay it just because it says to

A CP2000 in particular is generated by a computer matching forms against your return. It regularly proposes tax on gross proceeds without accounting for your cost basis, or double-counts income that appeared on two forms. Agreeing to an incorrect notice is expensive and hard to undo.

Read what it says you left out. Check it against your own records. If it's right, agreeing is simple. If it isn't, you respond in writing with documentation.

What not to do

• Don't ignore it. Interest and penalties keep running, and silence is treated as agreement.
• Don't call the number on an email or text claiming to be the IRS. The IRS opens contact by mail, not by phone, email or text.
• Don't send original documents. Send copies, always.

Then get help

You can respond yourself, and for a simple balance notice that's often fine. For anything proposing additional tax, having a preparer read the notice, pull your account transcript and write the response is usually worth more than it costs — because the transcript shows what the IRS actually has on file, which is the only reliable basis for an answer.