Opening your mailbox and finding an envelope from the IRS is rarely a good feeling. But not every notice means trouble — and even when it does, there's almost always a clear path forward. Here's how to handle it calmly and correctly.

1. Don't Ignore It

The single biggest mistake people make is setting an IRS notice aside and hoping it goes away. It won't. Most notices come with a response deadline, and missing it can mean losing appeal rights, accruing additional penalties, or triggering more aggressive collection action like a levy or lien.

2. Identify What Type of Notice You Received

Every IRS notice has a code in the top corner (e.g., CP14, CP504, LT11). This code tells you exactly what the IRS is communicating:

  • Balance due notices (like CP14) simply state you owe money and by when.
  • Underreporting notices (like CP2000) flag income the IRS thinks you didn't report.
  • Intent to levy notices (like CP504 or LT11) are far more serious and signal the IRS is preparing to seize assets or garnish wages.

3. Verify the Notice Is Accurate

IRS notices are generated by automated systems and are not always correct. Compare the notice against your own records and previously filed returns. Mismatches happen more often than you'd think — and you may not actually owe what the letter claims.

4. Know Your Deadline

Most notices give you 30 days to respond, dispute, or pay before the next collection step begins. Mark this date immediately. Even if you can't resolve the issue right away, responding before the deadline preserves your options.

5. Get Help Before You Respond

Responding to the IRS without understanding the full picture can lock you into a worse outcome. Before you call the number on the notice or send a payment, it's worth having someone review your situation and explain what's really at stake.