Got a Letter From the IRS?

First: Don't Panic (Seriously)

A letter from the IRS is not an audit, and it's not a bill being sent to collections. In the vast majority of cases, it's the IRS doing its job: matching the forms it received against your return and pointing out a discrepancy. You have time, you have options, and the process is far less scary than it looks.

The #1 rule from every experienced poster on r/tax: open the letter, read it slowly, and figure out exactly what it's asking. Do not throw it in a drawer and hope it goes away — that's how a $50 correction turns into penalties. But don't spiral either.

What a CP2000 Actually Is

The CP2000 is by far the most common notice. It is not a bill — it's a proposal. It says, in plain English: "The income reported to us (from your W-2, 1099, brokerage, etc.) doesn't match what you put on your return. Here's what we think you owe based on that." Common triggers:

• You forgot to report a 1099 (freelance income, interest, dividends).
• A side gig or investment account reported income you didn't include.
• Your reported number just doesn't match the copy the IRS got.

If the IRS is right, you agree and pay the difference. If it's wrong — the 1099 has an error, or the income was already reported elsewhere — you respond with documentation. Either way, it's a fixable paperwork issue, not a crisis.

How to Read the Letter

1. Find the notice number (top or bottom corner — CP2000, CP14, etc.).
2. Find the deadline — usually "respond by [date]" (typically 30 days).
3. Read what changed — the letter lists the specific discrepancy and the proposed tax.
4. Check if you agree — compare against your records and the forms you received.

When and How to Respond

• If you agree — follow the letter's instructions to pay the proposed amount (or set up a payment plan if you can't pay in full).
• If you disagree — send a written response before the deadline, with documentation proving your version (corrected 1099, receipts, a statement). Keep copies of everything.
• If it's a real audit (much rarer — actual audits affect a tiny fraction of returns) — the letter will say so explicitly and list what to provide.

Whatever you do, respond by the deadline. Miss it and the proposal becomes a final bill, and your options shrink.

How to Spot an IRS Scam

This is the other half of the r/tax "I got a letter" genre — the people asking "is this real?" Know the rules and you'll never get fooled:

• The IRS never initiates contact by phone, email, or text. Mail first, always.
• The IRS never demands payment via gift cards, wire transfer, or cryptocurrency.
• The IRS never threatens immediate arrest or deportation.

If a "letter" or call does any of those, it's a scam. Hang up, don't click, and don't send anything.

Frequently Asked Questions