An IRS letter arrived: what to do and what not to do

An IRS letter is frightening before it's opened. Most aren't audits: they're notices that something didn't match, that a number was changed, or that a document is missing. What is true is that nearly all of them carry a deadline.

What the IRS recommends doing

1. Read it through and keep it. Every letter has a notice number identifying what it's about.
2. Check the deadline and respond within it if a response is requested.
3. If you agree with it, do what it asks. The IRS notes you don't need to reply unless they specifically ask you to.
4. If you disagree, follow the dispute instructions and include copies of documents that support your position.
5. If an amount is due, paying by the deadline reduces interest and penalties.

How to tell whether the letter is real

The IRS keeps a lookup by notice number. If the letter in your hand doesn't turn up there, or something looks off, the IRS itself recommends calling 800-829-1040 to confirm before doing anything.

What not to do

• Put it aside unopened. Deadlines run from the date on the letter, not from when you read it.
• Pay an amount you don't understand without checking where it comes from.
• Send your original documents. Copies, always.
• Give information over the phone to someone who called you.

When you don't know what the IRS has on you

Sometimes the letter refers to something you don't recognize: income you didn't report, a return for a year you thought was closed. In those cases the way to find out what the IRS has on file under your name is to request your transcripts, using a Form 8821 signed by you.