What To Do After Receiving an IRS Notice or Tax Letter

David Wurst
Vertical black line on a white background.
Jun 02 2026 19:58

Receiving an IRS notice can feel unsettling, but many tax letters are routine and can be resolved smoothly when addressed early and correctly. Acting promptly, staying organized, and knowing your next steps can prevent unnecessary complications. As a trusted Matthews NC CPA firm, David N. Wurst, CPA, PA helps individuals, self‑employed professionals, and small business owners throughout Matthews and the greater Charlotte area understand and respond to these notices with clarity and confidence.

Why the IRS Sends Notices

The IRS sends notices for a variety of reasons—many of which do not indicate wrongdoing or major problems. These letters often aim to correct small discrepancies, verify information, or request additional documentation. At David N. Wurst, CPA in Matthews, NC, we regularly help taxpayers review and interpret these notices so they know exactly what is being asked and how to respond.

Common reasons the IRS sends notices include income mismatches, missing forms, incorrect estimated tax payments, overdue balances, or identity verification requests. Understanding the purpose of each notice is the first step toward resolving it efficiently.

Common IRS Notices You Might Receive

While each letter is unique, several IRS notices appear frequently among individual taxpayers and small businesses. These include:

  • CP2000 Notice: Issued when the IRS believes your reported income does not match information from employers, banks, brokers, or other payers.
  • Balance Due Notices: These letters indicate tax owed, missed payments, or underpaid estimated taxes—something we see often among self‑employed taxpayers in Matthews, NC.
  • Identity Verification Letters (5071C or 6331C): The IRS sometimes requires additional verification to protect taxpayers from fraud.
  • Missing Documentation Requests: These notices ask you to provide forms such as 1099s, W‑2s, or other paperwork supporting your return.

If you’re unsure what your notice means, our Matthews CPA office is here to help you review it and determine the correct next steps.

Step 1: Don’t Ignore the Notice

The most important thing you can do with any IRS notice is address it promptly. Ignoring deadlines can lead to additional penalties, interest, or the IRS making decisions on your behalf. Even when you disagree with the notice, responding on time protects your options and helps avoid unnecessary complications.

If you’re unsure where to begin, our licensed CPAs in Matthews, NC can walk you through the letter and help you craft a timely response.

Step 2: Read the Entire Notice Carefully

IRS letters include important details: the tax year in question, the issue identified, and specific steps you need to take. Reading the notice from top to bottom helps you understand what the IRS is requesting—and what they are not requesting. Many taxpayers feel anxious due to unclear wording, which is why having experienced help can make the process more manageable.

At David N. Wurst, CPA, PA, we help clients identify the core issue quickly so they know exactly how to proceed without guesswork.

Step 3: Compare the Notice to Your Tax Return

Next, gather your tax return, income documents, and any relevant records for the year in question. For issues like CP2000 notices or income mismatches, reviewing your W‑2s, 1099s, and bank or brokerage statements can clarify whether the notice is accurate.

Our team regularly assists with this reconciliation, especially for self‑employed taxpayers and small business owners in the Charlotte metro area who often have multiple income sources or complex documentation.

Step 4: Decide Whether You Agree or Disagree

Once you understand the issue, you’ll need to determine next steps:

  • If you agree with the notice, you may only need to make a payment, submit documents, or confirm the change. Acting promptly reduces penalties and interest.
  • If you disagree, you have the right to respond with supporting documentation. In many cases, a clear and organized explanation resolves the discrepancy.

This decision point is often where local taxpayers seek guidance from our Matthews CPA office. We help ensure your response is complete, accurate, and submitted correctly.

Step 5: Submit Your Response or Payment

If the IRS requests documentation, follow their instructions carefully. Responses may be submitted by mail, online, or over the phone depending on the notice type. If payment is required, the IRS provides several secure payment options.

Keeping copies of everything you send is important. As your local CPA in Matthews, NC, we help you organize and track all communication to ensure a clear paper trail and proper follow‑up.

Step 6: Get Professional Help When Needed

Some notices are simple; others involve deeper tax questions, missed deadlines, or multi‑year issues. Working with a licensed CPA in Matthews ensures that your response is accurate and that any underlying issues are addressed proactively. Whether you're dealing with a first-time notice or repeated letters, our team provides steady, knowledgeable support.

You can learn more about our notice assistance services here: IRS & State Tax Notice Help.

How David N. Wurst, CPA, PA Helps Local Taxpayers

Our firm assists individuals, self‑employed professionals, and small business owners across Matthews, Mint Hill, and the Charlotte metro area with clear, organized steps for resolving IRS and state tax notices. As a local CPA near Charlotte with decades of experience, we help clients feel confident and informed at every stage of the process.

From simple verification letters to complex multi‑year questions, our Matthews NC CPA firm provides practical support tailored to your situation. We focus on accurate communication, timely follow‑up, and reducing stress through professional guidance.

FAQ

Why did I receive an IRS notice?

IRS notices can stem from mismatched income, missing forms, payment discrepancies, tax credits, or identity verification requests. Many notices are informational and easily resolved when handled promptly.

Should I call the IRS myself?

You can, but many taxpayers prefer having a CPA in Matthews, NC review the letter first to ensure the correct issue is addressed. We often resolve questions without the need for lengthy phone calls.

What if I can’t pay the amount due?

The IRS offers payment plans and installment agreements. Before agreeing to anything, we help clients confirm whether the balance is correct and explore all available options.

Do all notices mean I owe money?

No. Some notices simply request documentation or inform you of a change. Others are identity verification alerts or updates about your return’s status.

How quickly should I act?

Always respond before the deadline listed on the notice to avoid penalties or lost appeal rights. Early action is one of the simplest ways to keep the process smooth.

If you’ve received a tax letter, don’t wait. Contact our Matthews CPA office for calm, organized guidance at any stage of the process. Reach out anytime through our website: Contact. Taking action now can prevent bigger issues later—so don’t ignore IRS notices or deadlines.