Most IRS notices are routine, automated, and solvable. The damage usually comes from ignoring the envelope, not from what is inside it.
Read the notice number in the corner
Every notice has a code in the upper right. CP2000 means reported income does not match your return. CP14 is a balance due. LT11 or CP504 are collection notices with real consequences.
Find the response deadline
The date on the notice controls your options. Responding on time can preserve your right to dispute the amount; missing it can turn a proposed change into an assessed balance.
Do not pay a bill you have not verified
Automated notices are frequently wrong. A missing cost basis, a duplicated 1099, or an unclaimed deduction can turn a five-figure proposal into nothing owed once you respond with support.
Know your options if you do owe
A balance you cannot pay in full still has paths forward.
- Installment agreements to pay over time
- Penalty abatement for first-time or reasonable cause situations
- Offer in compromise when the full amount is genuinely uncollectible
- Currently not collectible status during real hardship
Get unfiled returns filed
The IRS will not agree to most resolutions while returns are missing. Filing the back years, even with a balance, is almost always the first real step.