Got a Letter From the IRS? What Your Notice Means and What to Do Next

An envelope from the IRS can ruin your afternoon, but most IRS letters are routine and very fixable. An IRS notice usually asks for one of four things: a payment, a missing piece of information, proof of your identity, or your agreement to a change. This guide walks you through exactly what to do when an IRS letter arrives: how to confirm it's real, where to find the notice number, what the most common notices mean, and how to respond before the deadline so you keep all of your options open.

What to do in the first 24 hours after an IRS letter arrives

Resist the urge to call a phone number, pay something online, or toss the letter in a drawer. A few calm minutes now will save you time and money later.

1. Open it and read the whole thing. The IRS says to review every notice carefully and keep it for your records. The first page usually explains why you got it in one or two sentences.
2. Confirm it's really from the IRS. Check the notice number on irs.gov and compare the details to your own records (see the next section).
3. Find the response date. Circle it, put it in your phone, and count backward to give yourself time to gather documents.
4. Compare it to your return. Pull out the return for the tax year shown on the notice. Many notices are about a single line item, such as a 1099 you forgot or a credit the IRS adjusted.
5. Decide: agree, disagree, or can't pay. Each path has a specific response, covered below. If you're unsure, that's the moment to get help, before the deadline rather than after it.

Is the IRS letter real? How to spot a scam

Scammers love to impersonate the IRS because fear makes people act quickly. The good news is that the real IRS follows predictable rules. It says it normally contacts you the first time by mail delivered by the U.S. Postal Service. It emails and texts only people who have opted in, and it never sends direct messages on social media. The IRS (or a private collection agency working for it) may call about an account, but automated IRS messages only direct you to IRS.gov rather than sharing details or taking payment.

According to the IRS, contact is a red flag if it:

• Rushes you or demands payment right now.
• Threatens arrest, deportation or a visit from the police.
• Won't let you question or appeal the amount you owe.
• Asks for personal or financial information, such as card numbers or passwords, through an unexpected call, text or email.

To check a letter, search its notice number on irs.gov, then sign in to your IRS online account (typed directly into your browser, not from a link) to see whether the balance or notice shows up there. If something still feels wrong, call the IRS at 800-829-1040 using the number from irs.gov, not the one on a suspicious letter. Forward fake IRS emails to phishing@irs.gov.

Where to find the notice number on an IRS letter

Every IRS notice has an identifying number. The IRS says you can find the CP or LTR number in the right corner of the letter. "CP" stands for a computer paragraph notice; "LTR" is a letter. Once you have the number, the IRS's "Understanding your notice or letter" pages explain what it means and what to do.

The diagram below shows the parts of a typical notice worth finding first. Layouts differ from notice to notice, so treat it as a map, not an exact replica.

The most common IRS notices and what to do

These are the notices we see most often from individuals and small businesses around Fredericksburg. Always follow the instructions on your own notice; the dates and amounts on it control.

Audit letters like 566 and 525 have their own process. Our guide to what to expect in an IRS audit walks through each stage and your appeal rights.

Balance-due notices: how a CP14 escalates to an LT11

If you owe and don't pay, the IRS sends a series of notices, each a little more serious than the last. Not everyone receives every notice, and the timing between them varies, but the general order looks like this:

Two moments in that sequence deserve special attention:

• CP504 (notice of intent to levy). The IRS says that if you don't pay, it can levy income and bank accounts and seize property; it specifically lists state income tax refunds and Social Security benefits among the things it can take. The notice also flags that seriously delinquent tax debt can be certified to the State Department, which can deny or revoke a passport.
• LT11 or Letter 1058 (final notice of intent to levy and notice of your right to a hearing). This letter gives you Collection Due Process (CDP) rights. You have 30 days to request a CDP hearing with the IRS Independent Office of Appeals using Form 12153. Miss that window and you can still ask for an "equivalent hearing" within one year, but with fewer protections. A separate letter, Letter 3172, gives similar hearing rights after the IRS files a lien.

A CP504 does not itself give CDP rights; it comes before the formal final notice. That's why the stretch between CP504 and LT11 is a good time to get organized and choose a payment option. Our guide to IRS payment options when you owe back taxes explains each one.

How to respond to an IRS notice

Your response depends on whether you agree with the notice. Whatever you choose, respond by the date on the notice, and include the notice's response form or payment voucher when it asks for one.

If you agree

Take the action the notice requests, which is usually paying the balance or signing the agreement form. The IRS says you don't need to reply unless the notice specifically asks you to. If you agree with a CP2000 and have nothing else to report, the IRS says you don't need to amend your return. If you agree with a CP11, simply update your own records. Pay through irs.gov/payments or your online account so the payment is applied quickly and leaves a record.

If you disagree

1. Write a short, clear explanation. Stick to facts: which item is wrong and why. One page is usually enough.
2. Attach copies of proof. Corrected 1099s, brokerage cost-basis statements, receipts, or a page of your return showing where the income was already reported. Never send originals.
3. Put your name, taxpayer ID and tax year on every page. Pages get separated in processing.
4. Send it the way the notice instructs, by the due date, and keep proof of when you sent it.
5. Calendar a follow-up. IRS replies can take weeks. If a new notice arrives in the meantime, don't assume it ignored your letter; read it, because it may be responding to you.

If you agree but can't pay

Don't let the bill sit. Respond anyway, pay what you can, and set up a plan. Individuals who owe less than $100,000 can usually request a short-term plan of up to 180 days online, and those who owe $50,000 or less can usually set up a long-term installment agreement online. Both are covered in detail in our back-taxes guide.

Check your IRS online account

Your IRS individual online account is the fastest way to confirm a notice and see where you stand. Signing in requires identity verification, so have a photo ID ready the first time. Inside, you can:

• View your balance by tax year and up to five years of payment history.
• See digital copies of certain IRS notices and letters.
• Pull account and return transcripts and information returns (W-2s and 1099s the IRS received).
• Apply for, view or change a payment plan.
• Get an Identity Protection PIN, which helps block fraudulent returns filed in your name.
• Approve authorizations from a tax professional you choose to work with.

If the balance online doesn't match your notice, don't panic. Interest accrues daily, and payments can take time to post. A transcript showing every assessment and payment is the best way to reconcile the two.

Got a notice from Virginia Tax instead?

Virginia Tax runs its own billing and audit process, separate from the IRS. The most common item is a Notice of Assessment, which is a bill showing the tax due plus any penalties and interest, with the reason for the bill.

Virginia also examines returns by mail. You'll typically get a letter asking for more information, and Virginia Tax says you'll have the chance to respond before a bill is issued. Its audit letters include the name and phone number of the employee handling your case. If you're also dealing with a federal notice, sort out the federal side first, then fix Virginia. Our Virginia state income tax guide covers how the two returns connect.

When to get professional help with an IRS letter

Plenty of notices, like a CP12 refund adjustment or a CP05 review, need little or nothing from you. Others are worth a second set of eyes, especially when:

• You've received a CP504, LT11 or Letter 1058, or a lien or levy notice.
• The notice proposes a large change, or you don't understand why it was sent.
• You have unfiled returns or notices covering several years.
• You've received an audit letter (566, or a letter scheduling an office or field interview).
• You believe someone filed a return using your identity.

Timeless Tax helps Fredericksburg-area individuals and small businesses read notices, gather the right documents, and respond on time. We can work with the IRS on your behalf and help you choose a realistic path forward. Learn more about our tax resolution services, or bring the notice to your appointment along with the return for that year.

If you've hit a wall with the IRS itself, the Taxpayer Advocate Service, an independent organization within the IRS, offers free help to taxpayers facing financial hardship or problems that haven't been resolved through normal channels.

Written by the Timeless Tax & Accounting teamTimeless Tax & Accounting was founded in 2020 by Nagham Alobaidi and serves clients across Virginia and in other states, in English and Arabic. Reviewed for accuracy against IRS and Virginia Tax guidance as of October 2, 2026.

This page is general information, not tax, legal or financial advice for your specific situation. Tax rules change often — talk with a professional before acting.