Got a letter from the IRS or your state? Do not panic. Here is what to do.
Most IRS and state letters can be handled calmly and on time. The key is to act early. Send us a photo of the letter and we will tell you what it means and what to do next.
What to do, step by step
Do not ignore it, and do not pay or sign anything yet
Look for the response date, usually in the top right corner. Missing it can limit your options. Do not call the number on a suspicious letter until we have looked at it.
Send us a photo or scan of every page, the same day
Use the contact form or the secure portal. Include any envelope with a postmark if the date matters.
We tell you what it means
In plain English: what the IRS or state is asking, how much time you have, and what your options are. We tell you honestly if it looks routine or serious.
We take it from here
With your signed authorization (Form 2848), we communicate with the IRS or the state for you, request more time if needed, and prepare the response.
We follow through until it is closed
Payment plans, penalty relief, corrections to a return, or an appeal: we handle it and keep you informed.
Common notices and what they usually mean
| Notice | What it usually means | Typical deadline |
|---|---|---|
| CP2000 | The IRS thinks income or credits on your return do not match what others reported, and proposes changes. | About 30 days to respond |
| CP14, CP501, CP503 | You may owe a balance. A bill and reminders. | Pay or respond by the date on the notice |
| CP504, LT11, Letter 1058 | Final notices before the IRS may levy (take) money or property. These carry appeal rights. | Often 30 days: act immediately |
| Notice of Deficiency (CP3219A, Letter 531) | The IRS has decided you owe more tax. Your last chance to challenge it in Tax Court before it is assessed. | 90 days (150 if outside the U.S.) |
| Audit (examination) letters | The IRS wants to review your return and asks for documents or an interview. | Date on the letter: ask for more time early |
| State notices | Income, sales tax or payroll tax questions or balances from your state. | Varies: read the date on the notice |
Common questions
How long do I have to respond?
It is printed on the letter. Many notices allow about 30 days. A Notice of Deficiency gives 90 days to petition the Tax Court. Do not wait until the last week.
Can you deal with the IRS so I do not have to?
Yes. As a CPA, we can represent you with a signed power of attorney (Form 2848). Most contact then goes through us.
What if I cannot pay what the notice says?
There are options, such as payment plans and penalty relief. Respond anyway: ignoring a notice makes things worse.
Is the letter real?
Send it to us. Scams often copy IRS letters. We can verify it and tell you what to do.
General information, not advice for your situation. Contact us before you act.
How we can help
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Learn more →Business tax preparation & planning
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Learn more →IRS & state tax problem solving
A calm, experienced CPA between you and the IRS: notices, audits, penalties and back taxes.
Learn more →Let's talk about your taxes, your business, your plans.
Tell us what you need and we will get back to you quickly. There is no pressure: just a friendly conversation and a clear next step.
4260 Westbrook Dr, Suite 107
Aurora, IL 60504
Monday to Friday, 9:00 am to 5:00 pm, by appointment. Saturday and Sunday by appointment when needed.