Tax preparation
IRS notice review and response
Got a letter from the IRS? Most are routine and resolvable. The trick is responding accurately, on time, and to the right address. Send us the notice and we will read it, explain what it means, and respond on your behalf where appropriate.
What should I do if I just got an IRS notice?
Open the notice. Note the date and the response deadline. Then upload it to your client portal or email a clear scan to amanda@handledtax.com. Do not panic, do not call the IRS phone number on the notice yet, and do not respond on your own before we have looked at it. Most notices have a 30-day or 60-day window. Acting quickly is good. Acting hastily is not.
Notices arrive by physical mail. The IRS does not initiate contact by email, text message, or phone call. Anything that arrives by those channels claiming to be from the IRS is a scam.
What do the most common IRS notices mean?
- CP2000. Underreporter notice. The IRS received income documents (W-2s, 1099s) that were not on your return, or differ from what you reported. Often resolvable by responding with documentation.
- CP14. Balance due notice. You owe tax that was not paid with the return. Pay or set up an installment agreement.
- CP501 / CP503 / CP504. Escalating reminder notices for an unpaid balance. CP504 is the final notice before levy authority engages.
- 5071C. Identity verification request. The IRS suspects identity theft and wants to confirm you filed the return. Verify online or by phone, then the return continues processing.
- CP12. Math error correction. The IRS adjusted your refund or balance due based on a calculation difference. Review for accuracy.
- Letter 525 / 30-day letter. Examination report from an audit. This crosses into formal representation territory; an Enrolled Agent or tax attorney is appropriate from this point forward.
- Letter 1058 / Final Notice of Intent to Levy. Collection action. Formal representation territory; immediate referral to an Enrolled Agent or tax attorney.
What can you handle, and what gets referred?
Routine correspondence and document-matching notices are handled as part of the response service. This includes CP2000 underreporter notices, CP12 math errors, CP14 balance-due notices, identity verification, and similar.
Formal representation in audit examinations, collection due process hearings, appeals, and tax court is outside the scope of this practice and requires an Enrolled Agent, CPA, or tax attorney with active representation authority. When a notice escalates to that level, we refer you to an appropriate practitioner and continue to support the underlying tax facts so the representation goes smoothly. See the credentials and disclosures section for the full scope of what this practice can and cannot do.
How does notice response work step by step?
- Send the notice. Upload to portal or email a clear scan with all pages.
- Review and explanation. Same-day or next-day acknowledgment with a plain language summary of what the notice says and what response is needed.
- Document gathering. If supporting documents are needed, an itemized request goes back to you.
- Drafted response. A written response is drafted and reviewed with you before sending.
- Submission and tracking. The response is submitted to the IRS by mail or fax, tracked, and follow up handled until resolution.
IRS Notice Response FAQs
How quickly will you look at my notice?
Notices are reviewed within one business day in most cases. If a notice has a tight deadline (less than 14 days remaining), we prioritize it the same day. Sending the notice as soon as you receive it gives the most time to respond properly.
How much does notice response cost?
Notice response is billed hourly for non-membership clients, with most routine notices resolved within one to three hours of work. Membership clients with Planning or Full Picture have routine notice review included. Pricing is confirmed before work begins.
Can you call the IRS on my behalf?
We can call the IRS practitioner priority line with your written authorization (Form 8821 information authorization or Form 2848 power of attorney). Form 8821 lets us see your account and discuss your situation with the IRS but does not authorize representation. Form 2848 grants representation authority and requires Enrolled Agent, CPA, or attorney status to be filed in our name. Most routine notice work uses Form 8821.
What if the notice is wrong?
Many notices contain errors, especially CP2000 underreporter notices that fail to account for cost basis on stock sales or that match income to the wrong taxpayer. The response disputes the IRS calculation and includes the supporting documentation. Most disputes are resolved in the taxpayer's favor when the documentation is clear.
What if I ignore the notice?
Don't. Most notices escalate. CP14 turns into CP501 turns into CP503 turns into CP504, after which the IRS has authority to levy bank accounts and wages. Identity verification notices block your refund until verified. Underreporter notices that get no response result in default assessments at the IRS's calculation. Acting on time is much cheaper than not acting.
Ready when you are
Start with a fifteen minute conversation. We will figure out the right fit together.