Received an IRS Letter? Here’s What It Means and What to Do Next
Receiving a letter from the IRS can be stressful, but it doesn’t necessarily mean something is
wrong. Many IRS notices are routine and easy to resolve. At America’s Tax Doctor, we’re here to
help you understand what these letters mean and guide you through your next steps. Here’s a
simple breakdown of common IRS letters, what to do if you receive one, and how we can
support you along the way.
Why the IRS Sends Notices
The IRS sends letters for a variety of reasons. Sometimes, it’s to request additional documentation, notify you of a balance due, or clarify information on your tax return. While the reasons vary, each notice will explain the issue, what action (if any) is required, and how to respond.
Common Types of IRS Letters and What They Mean
CP01E - Identity Verification
Why You Received It: This notice is sent if the IRS suspects potential identity theft. They may require you to verify your identity before they process your tax return.
What to Do: Follow the instructions on the letter to verify your identity online or by calling the IRS. You can also contact America’s Tax Doctor for assistance.
CP2000 - Proposed Changes to Your Return
Why You Received It: The IRS identified discrepancies between the income reported on your tax return and what was reported by third parties, like your employer or bank.
What to Do: Review the proposed changes. If you agree, follow the instructions to pay any additional tax due. If you disagree, you’ll have the opportunity to provide supporting documentation.
CP14 - Balance Due Notice
Why You Received It: This is a reminder from the IRS that you owe taxes for a specific year.
What to Do: You can either pay the balance in full or set up a payment plan if you’re unable to pay the full amount. Visit our Tax Services page to learn more about how we can help set up IRS payment plans.
CP49 - Overpayment Applied to Back Taxes
Why You Received It: If you overpaid your taxes, the IRS may apply your refund to outstanding tax debt from a previous year.
What to Do: Review the details and check your records to confirm the previous balance. Contact us if you have questions.
Letter 566 - Examination/Audit Notification
Why You Received It: This letter notifies you that your return has been selected for an audit.
What to Do: Gather all relevant records and documentation. Our team at America’s Tax Doctor provides full audit support and can guide you through every step. Visit our IRS Audit Assistance section for details.
What to Do When You Receive an IRS Letter
Don’t Ignore It
Ignoring IRS notices can lead to additional penalties and interest. Read the letter carefully to understand what it says and take action promptly.
Confirm the Notice is Legitimate
Scams involving fake IRS letters are unfortunately common. Check for signs of legitimacy, such as the official IRS seal and the contact number matching one on the IRS website. Contact us at America’s Tax Doctor if you’re uncertain about the letter’s authenticity.
Review the Details Carefully
Understand what the IRS is asking. Does it request a response, payment, or additional information?Make sure you know what’s needed before taking action.
Respond by the Due Date
If the notice requires a response, reply by the date indicated to avoid additional penalties. If you need more time, the IRS may allow for extensions on certain responses, but it’s best to respond as soon as possible.
Gather Supporting Documents
Many IRS notices allow you to submit documents to correct discrepancies. Organize any relevant paperwork, such as W-2s, 1099s, receipts, or prior returns. If you need assistance, our Client Resources page has tools to help you securely upload these documents for review by our team.
How America’s Tax Doctor Can Help
Receiving an IRS letter can be nerve-wracking, but you don’t have to go through it alone. At America’s Tax Doctor, we offer comprehensive support to help you navigate IRS correspondence, from initial responses to full audit representation.
Here’s how we assist:
• Review and Clarify the Notice: We’ll explain what the notice means in simple terms and advise on your best next steps.
• Document Collection: Use our secure Client Resources page to upload any documents the IRS requests. We’ll review them and ensure you submit everything accurately.
• Audit Support: If your notice is related to an audit, our team will provide guidance on how to prepare, gather the required documentation, and represent you during the process. Visit our IRS Audit Assistance page for more information on our audit support services.
• Payment Plan Assistance: If you owe a balance, we can help set up a manageable IRS payment plan.
Common Questions About IRS Letters
Can an IRS letter mean I’m being audited?
• Not necessarily. Many IRS letters are simply requests for clarification or additional information. We’ll help you interpret the notice and take the appropriate steps.
Will I face penalties if I miss the response deadline?
• It depends on the type of notice. Missing deadlines can sometimes lead to additional penalties, so it’s best to address the letter as soon as possible.
Can I get help with setting up a payment plan?
• Yes! Our team can work with you to set up a manageable payment plan with the IRS if you owe taxes. Visit our TaxServices page to learn more about our payment plan assistance.
Next Steps: Contact America’s Tax Doctor for IRS Support
If you’ve received an IRS letter and aren’t sure what it means or how to respond, we’re here to
help. Our team of experienced tax professionals will guide you through the process, ensuring you
stay compliant and stress-free. Start by visiting our Tax Services page to learn more about our
support options, or reach out directly through our Contact Form.
With America’s Tax Doctor by your side, IRS letters don’t have to be intimidating. We’re
committed to providing the support you need to resolve any issues smoothly and efficiently.
