Got a letter from the IRS? What to do in the first 24 hours

The first thing not to do is pay before you understand it. The second is to ignore it.

Find the notice number

It's in the top right corner. Different letters mean different actions:

• CP14 is a bill: the IRS thinks you underpaid
• CP2000 is not a bill but a proposal: your return didn't match what employers and banks reported
• CP501, CP503 are reminders about an unpaid balance
• Letters 6419 and 6475 are informational, there is nothing to pay

A CP2000 is not a verdict

It's the most common letter and the scariest. It shows an amount, but nothing has been assessed yet. If you disagree, there is a response form and a deadline to object. People pay CP2000 amounts they don't owe just because the number is printed in large type.

The deadline matters more than the amount

Every letter has its own response deadline. Miss it, and the IRS proposal becomes a decision that is slower and more expensive to challenge.

What not to do

Don't call in a panic and don't agree to anything over the phone. Keep all communication with the IRS in writing, with a copy for yourself.