Got an IRS Letter in the Mail? Don’t Panic — Here’s What It Means and What You Must Do Next

Getting an IRS letter in the mail can feel like getting called to the principal’s office — unexpected, nerve-wracking, and often confusing. But here’s the good news: not all IRS notices are bad, and even when they are, there are clear steps you can take to resolve them smoothly.

In this article, we break down why the IRS might contact you, what the different notices mean, and most importantly — how to respond properly to avoid penalties or unnecessary stress. Whether you’re a first-time taxpayer or a seasoned professional, this guide will help you handle the situation with clarity and confidence.

IRS Letter in the Mail – What It Means & What to Do

Topic	Details
Why you received the IRS letter	Could be about a refund, tax balance, audit, or ID verification
Common IRS notices	CP2000 (underreported income), 5071C (identity verification), CP3219A (statutory notice of deficiency)
Response timeline	Usually within 30 days of the date on the letter
Actions to take	Review, compare with your tax return, pay if due, or dispute with evidence
Warning signs of scams	IRS will never call, email, or text first—official contact is always via mail
Official resource	IRS Notices & Letters – irs.gov

Receiving an IRS letter in the mail isn’t the end of the world — it’s often a fixable issue. The key is to stay calm, read carefully, and respond on time. Most notices are just corrections, verifications, or balance updates.

Understanding Why the IRS Sent You a Letter

The Internal Revenue Service (IRS) communicates primarily via mail. So, if they want your attention, they’ll send a formal IRS notice or letter. These notices could relate to:

Tax return errors or corrections
Unpaid taxes
A larger or smaller refund than expected
Missing documentation
Identity verification
Being selected for an audit

Pro Tip: Look at the notice or letter number, often at the top right of the document. This code (like CP2000 or LTR 4883C) will tell you exactly what the issue is.

For example:

A CP2000 notice indicates a discrepancy between your filed return and information from third-party sources like your employer or bank.
A 5071C asks you to verify your identity due to suspicious activity.
A CP3219A is a legal notice that you owe more tax, often related to income not reported.

see also: Told to ‘Self-Deport’ by Trump-Era Rule, This U.S. Citizen’s Shocking Story Revealed

Step-by-Step Guide: How to Handle an IRS Letter

Step 1: Don’t Panic — Read the Letter Carefully

The first step is simply to read the entire notice. Understand what the IRS is saying. Look for:

What the letter is about
What you’re required to do
When you must respond
Whether they’re asking for payment or documentation

Example: You receive a CP12 notice stating that a math error on your return changed your refund. It explains what was corrected and your new refund amount.

Step 2: Compare With Your Tax Return

Once you understand the issue, pull out your copy of the tax return you filed that year. Match the IRS’s numbers with your own.

If you agree with the correction, great — no further action might be needed.
If you disagree, you may need to send supporting documents, such as W-2s, 1099s, or receipts.

Tip: Use the IRS-provided envelope and include the response form or letter stub when replying.

Step 3: Respond Within the Deadline

Most IRS letters specify a response window, usually 30 days from the date of the letter. Delaying your reply can result in:

Added penalties
Interest charges
Loss of appeal rights

So don’t wait. Even if you need help, acknowledge receipt and explain you’re working on it.

Step 4: Handle Any Payment or Refund Issue

If the IRS says you owe money, you can:

Pay online using IRS Direct Pay
Set up a payment plan
Apply for penalty relief if it’s your first time missing a deadline

If they owe you more than expected — no action is usually needed, just wait for the adjusted refund.

Step 5: Contact the IRS if Needed

If you’re unsure or disagree with the notice, call the IRS using the number in the top right corner of the letter.

Be ready with:

A copy of your tax return
The IRS notice
Supporting documents (W-2, 1099, receipts)

The IRS toll-free line: 1-800-829-1040

Step 6: Watch Out for Scams

Fraudsters often use fear to trick taxpayers. Here’s how to stay safe:

The IRS will NEVER:

Call and demand payment
Threaten to involve police
Ask for credit card info over the phone
Email or text you about taxes

If someone claims to be the IRS and pressures you, hang up and report it via the IRS phishing page.

see also: Denied Spousal Benefits? Here’s Why It Happens

Common IRS Letters and What They Mean

Letter Code	Meaning
CP2000	IRS thinks you underreported income
CP12	Refund adjustment due to math error
5071C	Identity verification request
CP14	Balance due
CP3219A	Statutory notice of deficiency
LTR 4883C	Suspicious return activity – verify identity

IRS Letter in the Mail FAQs

1. What should I do if I can’t pay what I owe?

You can apply for a payment plan or installment agreement via the IRS website. In some cases, you may qualify for hardship status.

2. How do I verify if the letter is real?

All real IRS letters:

Come by U.S. mail
Include your tax ID
Contain a letter number and contact details

If in doubt, call the IRS directly or check the notice number online.

3. What happens if I ignore the IRS letter?

Ignoring a letter can lead to:

Fines and penalties
Wage garnishment
Property liens
Loss of appeal rights

4. Do I need a tax professional to reply?

Not always. Simple notices (like CP12 or CP14) can be handled on your own. For complex issues or audits, a tax preparer, CPA, or enrolled agent can help.