Best Ways to Handle an IRS Letter (2026)

This list applies to letters from the IRS and from the Oregon Department of Revenue. It is general: the notice in your hand says what it needs, and that always overrides a list like this one.

1. Confirm the letter is real before you act on it

The IRS generally makes first contact by mail through the US Postal Service. Scammers copy the look of real notices, so check before you pay or call a number printed on the letter.

• Look up the notice number on the IRS Understanding your IRS notice or letter page, and check your IRS online account, where genuine notices appear.
• If it does not match or looks wrong, call the IRS at the number on irs.gov, 800-829-1040, rather than the number on the letter.
• The IRS says it will not call demanding immediate payment by gift card, prepaid debit card or wire transfer, will not threaten arrest by local police, and will not demand payment without a chance to question or appeal the amount.
• Oregon letters carry a unique letter ID in the upper right corner. If in doubt, call the Department of Revenue at 503-378-4988 or 800-356-4222 using those published numbers.

2. Find the notice number and read the whole letter

The notice or letter number is in the upper right corner and usually starts with CP or LTR. It tells you what kind of letter this is before you read a word of the body. The ones people receive most often:

3. Put the date on the notice in your calendar

Every notice that needs a reply carries its own response or payment date, and that date is what counts, not a rule of thumb. Responding by it protects your appeal rights. If you need longer, a CP2000 lets you ask for more time, but ask before the date passes, not after.

4. Do not ignore it, even if you cannot pay

Unanswered notices escalate. A CP2000 with no reply can become a bill; a CP14 left unpaid can be followed by reminders such as the CP501 and, eventually, a CP504 Notice of Intent to Levy. Interest keeps running on an unpaid balance after the date on the notice. If you cannot pay in full, pay what you can by the due date and look at payment plans: the IRS offers installment agreements online.

5. Check the notice against your own records

A notice can be wrong in the details: a 1099 counted twice, a payment applied to the wrong year, a basis the IRS does not know about. Compare the notice line by line with your return and records before agreeing. For a CP2000, if you agree and have no other income to report, you follow the notice instructions and do not need to file an amended return. Good records make this step quick; see best records for self-employed Oregonians.

6. Respond in writing, and keep copies of everything

Use the response form that came with the notice, include the notice number, and send copies, never originals, of supporting documents. Keep a copy of what you sent and proof of when you sent it. Oregon letters can be answered online: in Revenue Online, choose "Respond to a letter"; you do not need an account, just the letter ID and the name shown on the letter.

7. Know when to hand it to a representative

An audit letter, a levy notice, several years of unfiled returns or a balance you cannot pay are the points where many people bring in a representative. Federally, you authorize a representative with Form 2848, which lets someone eligible to practice before the IRS represent you and see your tax information. Oregon replaced its old authorization form on 1 January 2025 with Form OR-AUTH-REP (to represent you) and Form OR-AUTH-INFO (to receive information only). Enrolled agents have unlimited rights to represent taxpayers before the IRS, and Heather Perkins is one.

• Audit representation
• Back taxes and collections
• Penalty abatement, often worth asking about once the balance is in hand

8. Treat an Oregon letter with the same care

Oregon DOR letters work much the same way. After a personal income tax audit, the department either accepts the return, issues a Notice of Deficiency and Auditor’s Report showing additional tax and why, or issues an Auditor’s Report showing a refund. If your return was changed, the auditor explains your appeal rights, and those rights have their own deadlines. Because the Oregon return starts from federal figures, a change to your federal return can affect the Oregon return too, so mention any IRS change when you talk to a preparer.

9. Fix the cause so the letter does not come back

Once the notice is resolved, look at why it happened: a missing form, estimates that were too low, a payroll deposit schedule that slipped. The tax deadline calendar and quarterly estimates cover the two most common causes.