Responding to IRS Notices

Here's some tips for responding to IRS notices quickly. Most letters from the IRS aren't scary, they just seem that way. Even if it's bad news, most IRS notices can be resolved quickly by following a few simple steps.

Read the IRS notice. Read it twice. You want to make sure what the IRS is saying. The IRS often requests additional information. Sometimes they want to alert you to a discrepancy on your return.

Call the IRS using the telephone number provided in the letter. Ask the IRS agent to explain the letter and how you can resolve the matter.

Follow the instructions provided in the notice. If the IRS wants additional information, track that down and respond in writing with a copy of the documentation they want.

If that hasn't proved successful, find a tax accountant who has experience in representing people before the IRS. Chances are, an experienced tax accountant has encountered this situation before and will be able to take care of the matter quickly.

The book Taxes for Dummies provides thorough and excellent advice for dealing with the IRS. The authors clearly explain the most common notices the IRS sends out, and provides sample letters for responding to the IRS.

The IRS provides a list of the most common notices it mails out. All notices have a code, usually the letters "CP" followed by a number. Use that code to find an explanation of the notice on the IRS website.