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What to Do When You Receive an IRS Letter — A Step-by-Step Guide

An IRS letter can spike anxiety, but most notices are alerting you to a discrepancy, requesting documentation, or notifying of next steps—not an immediate crisis. Here’s a calm, practical plan to respond correctly.

Step 1: Don’t Panic—Read Carefully
Open the letter and read the entire notice. Note the notice number (top right or top left), the tax year, and the requested action or explanation.

Step 2: Verify Its Authenticity
Scams exist. Confirm the letter came from the IRS: official mail arrives via USPS, references a specific tax year, and includes contact numbers. If unsure, call the IRS directly or consult a tax professional.

Step 3: Gather Documents
Collect the tax return in question, supporting W-2s/1099s, receipts, and other documents the IRS mentions. Organize them chronologically.

Step 4: Respond by the Deadline
IRS letters will typically set a deadline. Respond promptly. If you need more time, request it—but do so formally and as early as possible.

Step 5: Seek Professional Help When Necessary
If the letter involves audits, large balances, liens, or penalties, get expert representation. Optimum Shield can handle correspondence, negotiate installments, or represent you in audits.

Step 6: Keep Records of Everything
Save copies of your response, proof of mailing, and all subsequent correspondence.

Common Notices & What They Mean

  • CP2000: Discrepancy in reported income—often from third-party reporting.
  • Audit Letter: Request for additional documentation—don’t ignore.
  • Notice of Balance Due: Indicates unpaid tax—pay or negotiate payment plan.

Conclusion/CTA
Responding calmly and accurately usually resolves issues quickly. If you receive an IRS notice, contact Optimum Shield for professional representation and step-by-step support.
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