How to Read Your IRS Letter Without Panicking

Let’s be real—nobody enjoys opening an IRS letter. But understanding what it says is the first step to keeping your business safe. This post breaks down the structure of IRS letters and shows you how to read them like a pro.

What’s in an IRS Letter?

• Notice Number (top or bottom right) – tells you what type of issue it’s about (e.g., CP2000, CP504)

• Tax Year in Question – shows which year they’re reviewing

• Reason for the Notice – usually a mismatch, underpayment, or missing form

• Proposed Changes – the amount they say you owe (if any)

• Response Deadline – typically 30 days from the notice date

Common Mistakes People Make

• Throwing it away unopened

• Assuming it’s a scam without verifying

• Missing the response deadline

• Paying it without understanding or disputing

How to Verify It’s Real

• Check the IRS.gov site for notice numbers

• Never click links—always call or respond through official channels

• Match it against your tax documents and filings

How to Respond Without Stressing Out

• Breathe—this is solvable

• Call a tax professional who can interpret and respond for you

• Save a copy of everything you send in response

• Don’t wait until day 29

Real Talk: You’re Not Alone

Thousands of small business owners receive IRS letters each year. The key difference between financial peace and IRS chaos? Timely, informed action.

Call to Action

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