IRS Notice in Central Texas: What to Do First

A letter that says it is from the IRS is worth opening straight away and reading calmly. The IRS lists common reasons it sends notices and letters: a balance due, a change to a refund, a question about a return, a request to verify identity, a change or correction to a return, or delayed processing. Those are the IRS's own reasons. What a particular letter means depends on that letter, so this guide covers the first steps, not what yours says.

Moreno Financial Services prepares tax returns and keeps books for households and small businesses across Central Texas through our tax preparation services. We do not act for clients before the IRS. If you get a notice from the IRS, call us. We'll help you understand what it says and tell you if you need someone with IRS representation rights.

Step one: read it, keep it, find the number

The IRS's first instruction for any notice is to review it carefully and keep it for your records, and if the notice asks you to respond, to act by the date it gives. The Taxpayer Advocate Service adds a step before that: check the return address, to be sure the letter is from the IRS and not another agency. If it is from a state tax department, TAS says to call that office instead.

IRS notices and letters are numbered, and the Taxpayer Advocate Service says the number and the contact information for questions are usually shown in the upper right corner, and it notes the number can also sit in the bottom right-hand corner. That number is the key to everything that follows: the IRS's notices and letters search looks it up, and the Taxpayer Advocate Service has its own notice look-up and a Taxpayer Roadmap that shows where a notice sits in the IRS process.

Step two: make sure it is really the IRS

The IRS says it normally makes its first contact by mail delivered by the U.S. Postal Service, emails only when you have opted in, and never sends social media direct messages. Unannounced visits are rare, and the IRS generally sends a letter before it visits.

It also lists warning signs that a phone call, email or text is not from the IRS: it is unexpected, it rushes you, it threatens you, it asks for personal or financial information, or it demands payment now. To confirm a letter is genuine, the IRS says to search its notices and letters, and if the letter does not appear there or looks suspicious, to call 800-829-1040 and follow the representative's instructions.

If it is a fake

For a suspicious email claiming to be from the IRS, the IRS says not to reply, click links or open attachments, and to send it to phishing@irs.gov. For a suspicious text, send phishing@irs.gov, with the subject line Text, the sender's phone number and the message, your own phone number, and the date, time and time zone it arrived. The IRS also points people to the Treasury Inspector General for Tax Administration's online reporting, and the Federal Trade Commission takes reports as well. Then delete the message.

Step three: respond through official channels

The Taxpayer Advocate Service says most notice correspondence can be handled without calling or visiting an IRS office, by following the instructions in the letter. If you disagree with what a notice says, the IRS says to follow the instructions in the notice to dispute it, and to include information and copies of documents for it to review. The Taxpayer Bill of Rights includes the right to raise objections and provide additional documentation in response to formal IRS actions or proposed actions.

Certain notices can also be received and viewed in the IRS online account for individuals, and businesses that can use the IRS Business Tax Account can read notices and letters there. If you need to see someone in person, IRS Taxpayer Assistance Centers work by appointment on specific topics, booked at 844-545-5640.

Before you call anyone

A few minutes with the letter makes any call shorter and clearer:

• Check the return address: the IRS, or another agency
• Find the notice number in the right-hand corner, top or bottom
• Search that number on IRS.gov, or look it up with the Taxpayer Advocate Service
• Pull out the return and the records the notice mentions
• Do not reply to texts, emails or social media messages about it

When a notice gets stuck

The Taxpayer Advocate Service describes its help as free for taxpayers who qualify, and it has a tool that walks through the reasons it may be able to help, such as an IRS system or procedure that failed to resolve a problem; its advocates make the final decision once a request is submitted. Low Income Taxpayer Clinics are independent of the IRS and can help taxpayers within their income guidelines respond to notices and correct account problems, and each clinic decides whether it can take a case. The IRS list of clinics shows no clinic main office in Bell, Coryell or Lampasas County, so use the Taxpayer Advocate Service clinic map to find the nearest one.

Who may speak for you before the IRS is set by IRS rules on power of attorney, linked under Official sources. Our guide to choosing a tax preparer covers what to ask any preparer, and if a notice is about a balance you cannot pay in full, our guide to tax extensions and IRS payment plans covers the IRS's payment tools.