The first thing to do when you receive an IRS notice is to read it carefully. It includes information on why the IRS is sending the notice and whether you should respond. If you are asked to respond to the notice, you should reply after carefully considering the resolution options you have. For instance, in tax debt cases, the IRS sends notices regarding its payment and encourages the recipient to pay the amount in full. A taxpayer, on the other hand, may have other, more advantageous resolution options. Therefore, depending upon the issue, it’s best to choose between being led by the IRS or determining your own course of action.
If there is a deadline to resolve the issue, the IRS will mention it in the notice. Make sure that you respond to the notice within the timeframe and take the necessary action to address it quickly. Even if a resolution may take some time, respond to the notice promptly.
An IRS notice is not always threatening or requires action on your part. The IRS sends notices to provide taxpayers with information, too. For example, if the IRS has corrected errors on your tax return, they will inform you about the changes through a notice. In such cases, you must only respond to this letter if you disagree with it.
If you want to contest an IRS decision, then you must respond to them immediately and back up your argument through documents. When responding to notices, it is important to reply back through mail and not by phone. If it is not an emergency that requires calling or visiting the IRS, it is best to respond to notices by mailing your response.
Whenever you receive a notice from the IRS, be sure to keep it or make a copy for your records. In case of an audit, any written communication with the IRS might be required.