The IRS sends letters for specific reasons tied to your tax account
The IRS sends letters when something on your tax return needs attention, when you owe money, when they need more information from you, or when they are notifying you of a change to your account. The letter will state the reason in the first page or two. Most letters are routine — a mismatch between what you reported and what their records show, a missing form, or a notice that a refund is on the way. Some require you to respond; others are informational only.
The key is reading the letter carefully to understand what the IRS is asking for and whether there is a deadline. Many people throw these letters away or ignore them, which can turn a simple fix into a penalty or collection action. The IRS does not typically call you first — they send a letter. If someone called claiming to be the IRS and demanding payment, that is a scam.
Key Takeaways
- The IRS letter will state its reason on the first or second page, usually under a heading like "Why we sent this letter" or "What you need to do".
- Most common letters involve a discrepancy between your return and IRS records, a missing document, or notification of a refund or payment.
- Check the letter for a response deadline and any documents or forms you need to send back.
- If you do not understand the letter or disagree with it, you can respond in writing or contact the IRS office listed on the letter.
Common reasons the IRS sends letters
Income mismatch is the most frequent reason. Your employer, bank, or investment firm reports income to the IRS on forms like the W-2 or 1099. If that amount does not match what you reported on your tax return, the IRS sends a letter asking you to explain the difference. You may have reported less income than they have on record, or you may have reported more. Either way, they want clarification.
Missing or incomplete forms trigger letters when you did not include a required schedule or form, or when a form you sent was incomplete. For example, if you claimed a dependent but did not provide their Social Security number, or if you reported self-employment income but did not attach Schedule C, the IRS will ask you to send the missing piece.
Refund notifications come as letters too. If the IRS approved your refund, they send a letter saying when and how you will receive it. If there is a delay, they explain why. These letters do not require a response.
Payment and balance notices arrive when you owe taxes. The letter states the amount, the tax year, and the deadline to pay. It may also include penalties and interest if the debt is old.
How to read an IRS letter and find the deadline
Open the letter and look for a section titled "Why we sent this letter," "What you need to do," or "Action required." This section explains the issue in plain language. Below that, look for a date that says "Due date," "Response due by," or "By [date]." This is your deadline to respond. If you miss it, the IRS may assess additional penalties or move forward with collection.
The letter will also list what documents or forms you need to send back. Read this list carefully. If the IRS asks for a copy of a receipt, a bank statement, or a form, gather those items before you respond. Do not send originals — send copies. The letter usually includes an address where you mail your response, or it may direct you to respond online through an IRS portal.
At the bottom of the letter, there is typically a reference number or case number. Write this number on any documents you send back, and keep it if you need to call the IRS or visit an office in person.
What to do if you agree with the letter
If the IRS is correct — for example, you did forget to report some income, or you did leave off a required form — respond promptly with the missing information or a corrected return. The letter will tell you how to respond. Some letters allow you to respond by mail; others direct you to an online portal. Follow the instructions exactly.
If the letter says you owe money and you can pay it in full by the deadline, do so. You can pay online through IRS.gov, by phone, by mail, or in person at a bank or tax professional's office. Paying on time stops additional penalties from accruing. If you cannot pay the full amount, the letter may describe payment plan options, or you can contact the IRS office listed to discuss a plan.
What to do if you disagree with the letter
If you believe the IRS made an error, you have the right to respond in writing and explain why. Write a letter that includes your name, address, the tax year in question, and the reference number from the IRS letter. Explain clearly why you disagree — for example, "I did report this income on line 7 of my return" or "I am not the person responsible for this tax year." Include copies of documents that support your position, such as a copy of your filed return, a bank statement, or a receipt.
Mail your response to the address listed on the IRS letter before the deadline. Keep a copy for your records. The IRS will review your response and send you another letter with their decision. This process can take several weeks or months.
If you are unsure how to respond or if the issue is complex, consider consulting a tax professional or a certified public accountant (CPA). They can review the letter, advise you on your options, and help you prepare a response.
When to contact the IRS directly
You can call the IRS if you have questions about the letter or need clarification before you respond. The phone number is on the letter itself. Have the letter in front of you when you call, along with your Social Security number and any relevant tax documents. Call times are typically Monday through Friday during business hours, and wait times can be long.
If you prefer not to call, you can visit an IRS office in person. Find your local office on IRS.gov. Bring the letter, your identification, and any documents related to the issue. You can also hire a tax professional to contact the IRS on your behalf — they can represent you and handle the communication.
Red flags: scams that look like IRS letters
Real IRS letters come by mail, not email or text message. If you received an email or text claiming to be from the IRS and asking you to click a link or provide personal information, it is a scam. Delete it and do not click any links.
Real IRS letters do not demand immediate payment or threaten arrest. They do not ask for payment by gift card, wire transfer, or cryptocurrency. If a letter or call uses threatening language or demands payment in an unusual way, it is likely fraudulent. You can report suspected IRS scams to the Treasury Inspector General for Tax Administration (TIGTA) on their website.
If you receive a letter that looks suspicious — for example, it has poor spelling, an odd address, or requests payment in an unusual way — you can verify it by calling the IRS directly using the number on IRS.gov, not the number in the letter.
Frequently Asked Questions
What happens if I ignore an IRS letter?
If you do not respond by the deadline, the IRS may assess additional penalties, increase the amount you owe, or take collection action such as placing a lien on your property or garnishing your wages. Responding, even if you disagree, stops the clock and gives you a chance to resolve the issue before it escalates.
Can I respond to an IRS letter by email?
No. The IRS does not accept responses by email. You must respond by mail to the address listed on the letter, or through an online portal if the letter directs you to one. Do not email the IRS or respond to any email claiming to be from the IRS.
Do I need a tax professional to respond to an IRS letter?
Not always. If the issue is straightforward — a missing form or a simple income mismatch you can explain — you can respond yourself. If the issue is complex, involves multiple years, or involves a large amount of money, a tax professional can help you understand your options and prepare a strong response.
How long does it take the IRS to respond after I send my reply?
It varies. Simple issues may be resolved in a few weeks. Complex cases can take several months. The IRS will send you a letter with their decision once they have reviewed your response. You can check the status of your case by calling the IRS or visiting IRS.gov.
What if the IRS letter is about a tax year I did not file a return for?
Contact the IRS immediately. The letter may be sent in error, or it may indicate that someone filed a return using your Social Security number fraudulently. Explain in writing that you did not file for that year and ask the IRS to investigate. Keep copies of all correspondence.