Got an IRS Notice? The Response Playbook
An IRS notice is a process, not a verdict. Almost all of them follow the same escalation ladder, and the single most common way small problems become big ones is missing the response window — not the underlying issue itself.
Step 1 — Read it correctly
Every notice has a code in the corner (CP14, CP2000, LT11…). Decode yours here — the code tells you the issue, the stage, and what the IRS can do next. Also note:
- The notice date — deadlines run from this, not when you opened it
- The tax year — notices for old years are common and require different responses
- Whether it’s a CP (processing notice) or LT/L (letter — usually demands action)
Step 2 — Check the deadline
| Notice type | Typical window | What happens if you miss it |
|---|---|---|
| CP2000 (underreporter) | 30 days | Proposed assessment becomes real |
| CP90/LT11 (intent to levy) | 30 days | IRS gains levy rights; you lose CDP appeal rights |
| Audit (Letter 2205/566) | 30 days | Exam proceeds without your input |
| CP14 (balance due) | 21 days | Just payment demand — but penalties accrue daily |
Step 3 — Respond in writing (mostly)
- Respond to the address/fax on the notice, not a general IRS address — notices route to specific units
- Keep it factual — disagreement + supporting documents, not a narrative. Tax examiners process paper, not persuasion
- Send with proof — certified mail or fax with confirmation. “I called” isn’t a response for deadline purposes
- Call only for simple things — payment setup, clarifying a math-error notice. Anything substantive → paper
The notices you can mostly ignore
- CP12 — math error adjusted, usually in your favor or minor
- CP49 — refund applied to another debt (verify it’s right, but no action needed)
- Reminder notices on a balance you’re already paying
When it’s beyond DIY
Two situations warrant representation regardless of amount: a levy notice (CP90/LT11/Letter 1058) — because the Collection Due Process rights inside them are time-limited and valuable, and an audit of a complex year — because what you say in an exam gets used. For both, an EA or attorney who works controversy regularly is worth it.
Decode yours → every IRS notice explained · Check your options