What to Do When You Get an IRS Notice

Opening an envelope from the IRS is enough to make anyone’s stomach drop. Before you let your imagination run wild, know that there is a clear, manageable process for handling an IRS notice. Understanding what to do (and what not to do) can make all the difference in how smoothly the situation gets resolved.

Read the IRS Notice Thoroughly

The first step is simple but important: read the notice carefully and in full. Take the time to understand exactly what the IRS is asking for. Notices can cover a wide range of issues, so knowing the specifics before you take any action will help you and your CPA respond appropriately.

Share the IRS Notice With Your CPA

Once you have read through the notice, send it to your CPA right away. This is not the time to forward just the first page. Every page matters, and your CPA needs the complete notice to understand what the IRS is communicating fully and to determine the right course of action.

Let Your CPA Research the Notice

From there, your CPA will research the notice to understand what it means and what, if anything, needs to happen next. This step allows your advisor to verify the details, check them against your records, and figure out the most accurate path forward.

Review the Findings Together

After completing their research, your CPA will share their findings with you. This conversation is where you will get clarity on what the notice actually means for your specific situation.

Take the Right Action Steps

Finally, your CPA will walk you through next steps. This might mean submitting documentation, making a payment, or correcting an error. In some cases, no action is required at all. Every notice is different, and the appropriate response depends on what the IRS is actually asking for.

What Not to Do When You Get a Notice from the IRS

While the steps above outline what to do, it is just as important to know what not to do when a notice arrives.

• Do not assume the worst. Receiving a notice does not mean you are in serious trouble, and there is no reason to panic.
• Do not ignore it or throw it away. Notices do not resolve themselves, and setting one aside only delays a response that may be time-sensitive.
• Do not sit on it for too long. The sooner you share the notice with your CPA, the more time they have to research it properly and respond within any applicable deadlines.

A Calm, Practical Path Forward

An IRS notice can feel overwhelming, but it does not have to be. Reading it carefully, sharing it in full with your CPA, and giving your advisor time to research and respond puts you in the best position to handle it correctly. 

If you receive a notice and are not sure where to start, the team at CJG Partners is here to help you work through it step by step. Reach out to us today to get started.