An envelope from the IRS produces a reliable spike in adrenaline, and the great majority of the correspondence they send is routine. It typically concerns one specific issue on one specific return, it states what they believe and why, and it asks for a particular response by a particular date.
First: read the whole thing
It sounds obvious and people genuinely do not do it. The notice tells you which tax year it concerns, what the issue is, what the IRS believes the correct figures are, what they think you owe or are owed, what response they want, and by when.
Every notice carries an identifying number, generally in the upper right corner. That number identifies the type of notice, and knowing it is the fastest route to understanding what you actually have. The IRS publishes explanations of notice types by number.
The common categories
A math or processing adjustment. The IRS recalculated something on your return and is telling you the result. Sometimes this means you owe more, sometimes less. It may simply be correct, in which case the response is straightforward.
An underreporting notice. Information the IRS received from third parties — employers, banks, brokerages, payment platforms — does not match what your return reported. This is a proposed change, not a bill, and it is frequently wrong or incomplete in ways worth responding to.
A balance due notice. Tax the IRS says is owed and unpaid.
A request for information. They want documentation supporting something on the return.
An identity verification request. Increasingly common as a fraud control, asking you to confirm you actually filed the return.
An examination notice. A return has been selected for review.
The deadline is the thing that matters most
Nearly every notice states a response deadline. Meeting it preserves options; missing it can convert a proposal into an assessment and can forfeit rights you would otherwise have had.
If you need more time, contact them before the deadline rather than after. That conversation is generally available and it is much harder to have retroactively.
A proposed change is not a final determination
This is important with underreporting notices in particular. The notice sets out what the IRS believes based on the information they have, and their information is frequently incomplete.
The classic example is a brokerage transaction reported at gross proceeds without basis. The IRS sees the full sale amount as income; your actual gain may be a fraction of it or nothing at all. Responding with the basis documentation resolves it.
The same pattern applies to payment platform reporting that includes non-business transactions, and to income reported under the wrong taxpayer.
How to respond
- Respond by the deadline, even if only to request more time
- Address the specific issue raised — this is not the moment to renegotiate other aspects of the return
- Include documentation supporting your position
- Keep copies of everything, including proof of mailing
- Follow the instructions on the notice for where and how to respond, which varies by notice type
If they are right
Sometimes the notice is simply correct. If so, the response is agreeing and addressing payment, and payment options exist if the full amount is not immediately available.
Agreeing to a correct adjustment promptly is generally the least expensive path, since penalties and interest continue accruing while a matter is unresolved.
Watch for scams
Real IRS correspondence generally begins with a mailed letter. Aggressive phone calls demanding immediate payment, threatening arrest, or asking for payment by gift card or wire transfer are not how the IRS operates. If something arrives by phone, text or email demanding urgent payment, treat it as fraudulent and verify independently through official channels.
When to get help
Straightforward notices with a clear correct answer are often manageable directly. Examination notices, anything involving substantial amounts, anything you disagree with, and anything you do not understand are all reasons to involve a preparer before responding — because the response shapes what happens next.
RD Precision Tax Service works with clients in Weatherford and Parker County on responding to IRS correspondence. Bring the notice, the return it concerns, and the supporting documents, and we will work through what it actually says.
This article is general information, not tax advice, and tax rules change from year to year. Confirm current-year figures and talk with a professional about your specific situation before acting.
Common questions
Is an IRS notice the same as an audit?
No. Most IRS correspondence is routine — a processing adjustment, an information mismatch, a balance due, or an identity verification request. An examination notice is a distinct type and it says so. The notice number in the upper right identifies which you have.
What if I disagree with the notice?
Respond by the stated deadline explaining your position with supporting documentation. Many notices are proposed changes rather than final determinations, and they are frequently based on incomplete information — a securities sale reported without basis is the classic example.
What happens if I ignore it?
Deadlines on IRS notices matter. Missing one can convert a proposed change into an assessment and can forfeit rights you would otherwise have had. If you need more time, contact them before the deadline rather than after.
The IRS called demanding immediate payment. Is that real?
Almost certainly not. Real IRS contact generally begins with a mailed letter. Demands for immediate payment by phone, threats of arrest, or requests for gift cards or wire transfers are hallmarks of fraud. Verify independently through official channels.
Have a question about your situation?
Robert prepares returns for individuals, contractors, and small business owners across Weatherford, Aledo, Willow Park, Springtown, Mineral Wells, and the rest of Parker County. Bring your questions — the first conversation is free.