Received a letter from the IRS or your state tax agency? Don't panic — and don't ignore it. We help you understand what the notice means, gather the right documentation, and respond correctly and on time.
Book a ConsultationThe IRS and state tax agencies send millions of notices each year — for income discrepancies, missing information, identity verification, balance due, audits, and more. Each notice has a specific purpose, a deadline for response, and potential consequences if ignored. IRS notice response means understanding what the IRS is asking for, preparing a complete and accurate response, and communicating with the agency to resolve the issue.
Most IRS notices are not audits. In fact, the majority are automated computer-generated letters triggered by data mismatches — for example, when income reported on a 1099 doesn't match what you entered on your return. These can often be resolved with a clear explanation and supporting documentation. But even a simple notice can become a serious problem if left unanswered.
At TaxWise LLC, we review your notice, analyze the underlying issue, gather supporting documentation, and prepare a professional response. When needed, we represent you before the IRS or state tax agency via Power of Attorney (Form 2848). Our goal is to resolve the matter as quickly and favorably as possible — and to make sure you understand what happened and why.
You received a CP2000, 12C, 5071C, or other IRS letter and aren't sure what it means or how to respond. A CPA-reviewed response protects your rights and ensures accuracy.
Business tax notices can involve employment taxes, sales tax, or income tax discrepancies. A professional response can prevent the issue from disrupting your business.
Notices involving foreign income, foreign tax credits, or international information returns (FBAR, 8938, 3520) require specialized knowledge. A standard response may miss key cross-border issues.
You received a notice months ago and didn't respond. The IRS has escalated to collection or assessment. It's not too late — but you need experienced help to navigate the options still available.
Your return was selected for examination. Whether it's a mail correspondence audit or a field examination, having a CPA represent you from the start typically leads to better outcomes.
You received a notice about a return you didn't file or income you didn't earn. Identity verification and tax-related identity theft require specific IRS procedures we can guide you through.
The IRS computer found income reported to them (by employers, banks, clients) that doesn't match what you reported on your return. This is the most common IRS notice.
The IRS needs additional information to process your return — typically missing forms, schedules, or clarification of entries on your return.
The IRS needs to verify your identity before processing your return. This is an anti-fraud measure. You may need to verify online, by phone, or in person.
The IRS has selected your return for examination. Audits range from simple mail correspondence (send us this receipt) to comprehensive field examinations of business records.
The IRS is attempting to collect unpaid tax. These notices may precede enforced collection actions such as wage garnishment, bank levies, or federal tax liens.
Washington DOR and other state tax agencies issue their own notices for income tax, sales tax, B&O tax, and other state-level tax matters.
The IRS received a copy of the form from the payer. Their system cross-checks what you reported against what was reported to them. A mismatch triggers a CP2000.
Venmo, PayPal, Etsy, Uber, or similar platforms issue Form 1099-K. If you didn't include that income, the IRS knows about it.
A 5071C letter may indicate someone attempted to file a fraudulent return using your SSN. The IRS wants to confirm it was actually you who filed.
The Earned Income Tax Credit (EITC), Child Tax Credit, and certain business deductions have high audit rates. An audit notice asks you to provide proof of eligibility.
Collection notices escalate over time. What starts as a CP14 (balance due) can progress to a CP504 (intent to levy) and then to enforced collection if unaddressed.
Sometimes the IRS simply made an adjustment during processing and is notifying you. These are often the easiest to resolve — if you respond promptly.
Most IRS notices are not as serious as they look. The notice will tell you what the IRS is proposing, what information they need, and your deadline to respond. Note the notice number (CP2000, 5071C, etc.) and the tax year it references.
Pull together the tax return in question, any supporting documents related to the issue, and all pages of the notice itself. Do not throw away the envelope — it contains the mailing date, which may affect your deadline.
Forward us the notice and we will review it — usually at no charge for the initial review — to determine what the IRS is asking for, whether their position appears correct, and what documentation or response is needed. If you'd like us to handle the response, we'll provide a fee estimate.
Missing the response deadline limits your options. In many cases, we can draft and submit the response on your behalf, including a Power of Attorney so we can deal with the IRS directly. Most notices are resolved at this stage without further escalation.
Forward your notice to us for a review. We'll explain what it means, what you need to do, and handle the response if you'd like us to.
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IRS Circular 230 Disclosure: Any tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of avoiding federal tax penalties or promoting, marketing, or recommending any transaction or matter addressed herein.
Important: Do not send sensitive personal information such as Social Security numbers or banking details through unsecured forms or email. Use our secure client portal for document uploads. The information on this page is for general informational purposes only and does not constitute professional tax advice. Every taxpayer's situation is unique — please consult with a CPA regarding your specific facts and circumstances.