The IRS sent out more than 200 million notices in the last full fiscal year. Most were automated matching letters, not audits — and most were resolvable with a single, well-drafted written response. But how you respond in the first 30 days largely determines whether the case closes quickly or spirals into penalties, interest, and eventually a levy.
This is the same checklist we walk through at S&S CPA INC when a client forwards us an IRS envelope.
- 1. Step 1: Read the notice and find the notice number
- 2. Step 2: Do not call the IRS on the first day
- 3. Step 3: Verify the numbers against your return and source documents
- 4. Step 4: Draft a response that addresses every issue in the notice
- 5. Step 5: Send it certified and calendar the follow-up
- 6. When to bring in a CPA or tax attorney
- FAQ
Step 1: Read the notice and find the notice number
Every IRS notice has a notice or letter number in the top or bottom right corner — CP2000, CP14, CP504, LT11, Letter 3219, and so on. That number tells you exactly what type of notice it is and what deadline applies.
The most common notices we see: CP2000 (proposed changes based on 1099/W-2 matching), CP14 (first balance-due notice), CP501/CP503/CP504 (escalating collection notices), and Letter 525 or 915 (examination results). Each has a different response strategy.
Step 2: Do not call the IRS on the first day
The single most common mistake we see is calling the IRS 800 number as the first move. Once you speak with an agent, anything you say becomes part of the file — including a casual 'oh, I probably owe that.' Read the notice, pull your return, and respond in writing.
Most IRS notices give you 30 days to respond in writing. Written responses go into a documented paper trail and are worked by the same unit that generated the notice, which is faster and cleaner than a phone conversation with a random agent.
Step 3: Verify the numbers against your return and source documents
A CP2000 says the IRS's third-party data (W-2s, 1099s, 1099-B brokerage reports, K-1s) does not match what you reported. Pull the return, the transcripts, and the underlying 1099s.
It is very common to find that the IRS is missing a cost basis on a stock sale, double-counted a rolled-over IRA distribution, or is proposing tax on a 1099-K that was already reported on Schedule C. In those cases you do not owe anything — you owe an explanation.
Step 4: Draft a response that addresses every issue in the notice
The response should reference the notice number, the tax year, and each proposed change item by item. Attach supporting documentation and, where appropriate, an amended return (1040-X) or corrected schedule.
For CP2000 responses, use the response form included with the notice — check either 'I agree,' 'I partially agree,' or 'I disagree,' and attach your explanation. For collection notices, use Form 9465 to request an installment agreement or Form 656 for an offer in compromise if you truly cannot pay.
Step 5: Send it certified and calendar the follow-up
Mail the response certified with return receipt. Save the tracking number in your permanent tax file. The IRS is currently taking 60–120 days to work correspondence, so calendar a follow-up date 90 days out.
If you receive a second notice on the same issue while the first is still being processed, respond again with a short cover letter that references your prior response, tracking number, and date. Do not assume they will connect the dots.
When to bring in a CPA or tax attorney
Get professional representation any time you receive a Letter 525, Letter 915, or Letter 3219 (Notice of Deficiency — the 90-day letter), a CP504 collection notice, a Letter 1058/LT11 (final notice of intent to levy), or any correspondence proposing more than roughly $10,000 in additional tax.
A CPA can file Form 2848 (Power of Attorney) and correspond directly with the IRS so you do not have to. That alone lowers the stress dramatically — and in our experience it often improves the outcome, because a CPA knows which arguments the IRS will accept and which will just add months.
Frequently asked questions
How long do I have to respond to a CP2000?
30 days from the notice date. If you need more time, call the number on the notice and request a 30-day extension in writing — it is usually granted once.
Will responding to a notice trigger a full audit?
No. A CP2000 is a matching notice, not an audit. Responding accurately usually closes the file. Audits (Letter 525, 915) are separate and are opened by a different IRS division.
Conclusion
Handled early, an IRS notice is a paperwork exercise. Ignored, it becomes a lien, a levy, or a wage garnishment. If you have a letter open on your desk right now, call S&S CPA INC before the 30-day clock runs out.
Need Professional Tax or Accounting Advice?
Schedule a complimentary consultation with Selim Hanna, CPA, Managing Partner & Lead CPA, to discuss tax preparation, tax planning, bookkeeping, CFO advisory, IRS representation, or business consulting services.
Selim Hanna is a licensed Certified Public Accountant with prior Big 4 accounting experience, licensed to practice in California, Colorado, and Tennessee. He leads S&S CPA INC's Tax Planning, Accounting, Bookkeeping, CFO Advisory, IRS Representation, and Attestation Services practices for closely held businesses and high-earning professionals.
The information provided in this article is for educational purposes only and should not be considered tax, accounting, or legal advice. Every situation is unique. Contact S&S CPA INC for advice tailored to your specific circumstances.