You Received an IRS Notice. Now What?
By Martina V.
Most IRS notices carry deadlines, and some trigger collection action after 30 days. Here's how to read the notice, what to do first, and what to avoid.
Don't panic — but don't ignore it
An IRS notice is not the same as a bill you can set aside. Almost every notice carries a response deadline, and several — most importantly the Final Notice of Intent to Levy — start the clock on collection action 30 days after mailing.
The single most common mistake I see is waiting. A notice that could have been resolved with a phone call and a payment plan in week one becomes a wage levy in week six.
Read the notice carefully
Look for three things:
- What type of notice it is (CP14, CP504, LT11, etc.) — this tells you what stage you're in.
- The balance and tax year it references.
- The response deadline printed on the letter.
If you're not sure what a notice means, that's exactly what a consultation is for. I'll read it with you and explain it plainly.
What not to do
- Don't call the IRS and give a recorded statement before you understand your options. Anything you say can be used later.
- Don't ignore it hoping it resolves itself — it won't, and penalties and interest compound monthly.
- Don't pay a balance you disagree with without checking whether it's correct. Transcripts sometimes show errors, duplicate assessments, or payments that weren't credited.
The earlier you act, the more options you have
In the first 30 days you often have access to streamlined installment agreements, penalty abatement, and time to prepare an Offer in Compromise. After a levy notice, the window narrows and we're often working to release a levy rather than prevent one.
If you've received a notice — any notice — bring it to a consultation. I'll tell you exactly where you stand and what your options are, clearly and without pressure.