Learning Center
Received an IRS Letter? Here’s What Not to Do
Few things spike stress faster than an official-looking envelope from the IRS or your state tax agency.
The logo.
The language.
The vague sense that something has gone very wrong.
Before reacting, take a breath.
Most of the stress we see around IRS and state tax notices doesn’t come from the letter itself. It comes from how quickly people react to it.
Here’s a contrarian guide to what not to do if you receive a tax notice—and why slowing down matters.
Don’t Assume You’re in Trouble
Tax agencies send millions of notices every year.
Many are simply:
Requests for clarification
Automated mismatches
Missing information follow-ups
Balance notices that don’t reflect recent payments
A notice is not an accusation. In many cases, it’s a system-generated letter asking for confirmation or correction.
Assuming the worst creates stress without solving anything.
Don’t Ignore It (Even If You’re Hoping It Goes Away)
Ignoring a notice is one of the fastest ways to make a small issue bigger.
Unanswered notices can lead to:
Missed response deadlines
Additional penalties and interest
Fewer resolution options
This applies to both IRS and state agencies. In fact, some states move faster and enforce more aggressively than the IRS once deadlines are missed.
Don’t Call the IRS or State Agency Without a Plan
This surprises many people.
Calling without fully understanding the notice can:
Lock in assumptions that aren’t accurate
Lead to incomplete or inconsistent explanations
Create confusion if the issue is more complex than it appears
Tax agencies operate by procedure, not context. A call made without preparation can complicate matters instead of clarifying them.
Don’t Send a Payment Just to “Make It Go Away”
This is one of the most common—and costly—mistakes.
Paying before verifying the notice can mean:
Overpaying
Missing credits or adjustments
Losing the opportunity to dispute errors
Once a payment is made, correcting mistakes can be far more difficult.
Don’t Panic-File an Amended Return
Amended returns have their place, but reacting too quickly can backfire.
They:
Take time to process
Can trigger additional review
May introduce new issues if filed incorrectly
Amendments should be strategic, not emotional.
Don’t Assume This Is a DIY Situation
Some notices are simple. Others are not.
What looks like a minor discrepancy can sometimes point to:
Withholding issues
Reporting mismatches
Estimated tax problems
Prior-year errors carrying forward
Trying to handle everything on your own can add stress—especially when deadlines and enforcement timelines are involved.
What to Do Instead
The right response usually starts with three things:
Read the notice carefully
Understand what the agency is actually asking for
Respond accurately and on time
That’s much easier to do with guidance, especially when emotions are high.
The Bottom Line
Receiving an IRS or state tax notice is unsettling—but it doesn’t have to be overwhelming.
Most problems don’t come from the letter itself. They come from panic, assumptions, or rushed responses.
If you’ve received a tax notice, contact our office before responding. If you’re a current client, looping us in early allows us to review the notice, confirm what’s being requested, and help resolve the issue with as little stress as possible.
Important Note
This article is intended for general educational purposes only. It is not legal advice. Tax notices vary, and individual circumstances matter. For legal guidance, consult a qualified attorney. For assistance responding to IRS or state tax notices, contact your tax professional.
NEVER MISS A STORY.
Sign up for our newsletters and get our articles delivered right to your inbox.
Rose Tax & Financial
Cedar Crest, New Mexico 87008
Sat: 10:00am to 2:00pm
Check the background of your financial professional on FINRA's BrokerCheck
Avantax affiliated Financial Professionals may only conduct business with residents of the states for which they are properly registered. Please note that not all of the investments and services mentioned are available in every state. Securities offered through Avantax Investment Services℠, Member FINRA, SIPC, Investment Advisory services offered through Avantax Advisory ServicesSM, Insurance services offered through an Avantax affiliated insurance agency. 3200 Olympus Blvd., Suite 100, Dallas, TX 75019. 972-870-6000.
The Avantax family of companies exclusively provide financial products and services through its financial representatives. Although Avantax Wealth Management® does not provide or supervise tax or accounting services, Avantax representatives may offer these services through their independent outside business. Content, links, and some material within this website may have been created by a third party for use by an Avantax affiliated representative. This content is for educational and informational purposes only and does not represent the views and opinions of Avantax Wealth Management® or its subsidiaries. Avantax Wealth Management® is not responsible for and does not control, adopt, or endorse any content contained on any third party website.
This information is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.
The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. We make no representation as to the completeness or accuracy of information provided at these web sites. Nor is the company liable for any direct or indirect technical or system issues or any consequences.
For Important Information and Form CRS please visit https://www.avantax.com/disclosures.