Received a Notice from the IRS? Essential Steps to Avoid

Receiving a letter from the IRS or your state tax agency can be an immediate stress trigger—especially when faced with the stern demeanor of official correspondence.

The logo.
The formal language.
The unnerving feeling of impending doom.

First, take a deep breath.

Often, the anxiety associated with IRS and state tax notices arises not from the correspondence itself but from our instinct to react without pause.

Here’s a thoughtful guide on what not to do when you receive a tax notice—and why taking a moment to think matters.

Don’t Assume You’re in Trouble

Tax agencies dispatch millions of notices annually.

Many are merely:

  • Requests for clarification

  • Automatic discrepancy notices

  • Follow-ups on missing information

  • Balance notifications that don’t account for recent payments

Receiving a notice isn’t the same as being accused of wrongdoing. Often, it’s an automated request for information or correction.

Assuming the worst adds unnecessary stress.

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Don’t Ignore It (Even If You’re Hoping It Disappears)

Overlooking a notice is one of the quickest ways to escalate a minor issue into a significant problem.

Failing to address notices can result in:

  • Missed deadlines

  • Additional penalties and interest

  • Limited resolution options

This holds true for both IRS and state agencies. Indeed, some states respond more rapidly and enforce more strictly than the IRS when deadlines are missed.

Don’t Call the IRS or State Agency Without a Plan

This may be surprising to many.

Calling without a comprehensive understanding of the notice can:

  • Establish incorrect assumptions

  • Lead to incomplete or conflicting explanations

  • Create confusion if the matter is more complicated than it appears

Tax agencies work through procedural processes, not contextual understanding. Without preparation, a call can complicate matters.

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Don’t Send a Payment Just to “Resolve It”

This is one of the most common—and costly—blunders.

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Paying without confirmation can lead to:

  • Overpayment

  • Missed credits or adjustments

  • Lost opportunities to contest errors

Once payment is made, rectifying mistakes can become significantly harder.

Don’t Panic-File an Amended Return

Amended returns have their role, but acting impulsively can cause more harm than good.

They:

  • Require time to process

  • Can prompt additional scrutiny

  • May introduce new concerns if not prepared correctly

Amendments should be grounded in strategy, not emotion.

Don’t Assume This Is a DIY Situation

While some notices are straightforward, others aren’t.

What seems like a minor discrepancy can actually signify:

  • Withholding issues

  • Reporting discrepancies

  • Problems with estimated taxes

  • Errors from previous years

Attempting to resolve every issue alone can increase anxiety—particularly with deadlines looming and enforcement measures in place.

What to Do Instead

A measured response typically involves three steps:

  1. Carefully review the notice

  2. Comprehend what the agency truly requests

  3. Respond accurately and within deadlines

Engaging with a professional can facilitate this process, especially when emotions run high.

The Bottom Line

Receiving a notice from the IRS or state tax authority can be unsettling—but it doesn't need to be overpowering.

Many issues arise not from the notice itself but from panic, hasty assumptions, or rushed reactions.

If you've received a tax notice, contact our office before proceeding. If you're an existing client, involving us early allows us to analyze the notice, verify the request, and assist in resolving the issue with minimal stress.

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Important Note

This article is intended for educational purposes only and does not constitute legal advice. Tax notices vary, and personal factors are crucial. Seek qualified legal counsel for legal guidance. For assistance with IRS or state tax notices, contact your tax professional.

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