Opening your mailbox to find an IRS envelope can send a wave of panic through anyone. But before you let fear take over, remember: IRS letters are more common than you think, and not all of them are bad news. In fact, many are routine requests or clarifications that can be resolved quickly if handled the right way.

Here’s a step-by-step guide on what to do:

Step 1: Read the Letter Carefully
Every IRS letter has a notice number, usually found in the top right corner. That code tells you exactly what the IRS wants—whether it’s to confirm income, request documentation, or notify you of a balance due. Skimming or ignoring details can lead to costly mistakes.

Step 2: Don’t Ignore It
The biggest mistake people make is shoving the letter in a drawer. IRS notices have strict deadlines. Miss them, and you risk penalties, interest, or even enforced collection actions like liens and levies.

Step 3: Gather Your Documents
If the IRS questions your return, you’ll need receipts, pay stubs, or other proof to support your numbers. Organize your paperwork early—it makes resolution faster and smoother.

Step 4: Respond on Time
Deadlines are critical. Even if you can’t pay the full amount, responding within the given timeframe shows the IRS you’re cooperating. This often prevents the issue from escalating.

Step 5: Get Professional Help
IRS language is confusing, and trying to respond on your own may create more problems. An Enrolled Agent or tax resolution specialist can step in, communicate directly with the IRS, and protect your rights.

The Bottom Line: IRS letters don’t mean you’re in trouble—but ignoring them can create bigger issues. Acting quickly and getting help ensures your problem is handled with confidence and peace of mind.