Receiving a notice from the IRS can be unsettling. Whether it's about unpaid taxes, an audit, or missing information, it’s a letter that nobody wants. However, ignoring the notice is the worst response—and unfortunately, that’s exactly what many people do. Failing to address IRS correspondence can lead to compounding penalties, mounting interest, and sometimes even aggressive collection actions. Let’s go over what not to do and, more importantly, the steps you shouldtake when the IRS comes calling.

1. Don’t Ignore It

Many taxpayers avoid IRS notices, hoping the issue will somehow resolve itself. But the IRS doesn’t forget. Ignoring a notice won’t make it disappear; in fact, it only worsens the situation. Interest and penalties continue to build over time, and the IRS will eventually escalate collection efforts, potentially leading to wage garnishments, bank levies, or liens on your property.

What to Do Instead: The best course of action is to open the letter promptly, understand what the IRS is asking, and determine if there’s a deadline to respond. If you’re not sure how to proceed, reach out to a tax professional who can interpret the notice and guide you on the next steps. Acting quickly can help keep the situation manageable.

2. Don’t Panic - Create a Plan

A common reaction to receiving an IRS notice is to scramble to pay off any indicated balance, sometimes even resorting to high-interest loans or credit cards. While it’s understandable to want the debt gone, taking on more debt or liquidating assets hastily can lead to further financial strain. Don’t forget the IRS sometimes makes mistakes too, and it’s possible you may pay off something you didn’t even owe!

What to Do Instead: Carefully review the amount the IRS says you owe and consider your options. The IRS often offers payment plans or settlement options, like the Installment Agreement or Offer in Compromise, which may allow you to pay less than the total balance. A tax professional can help you decide which payment method is best, without unnecessarily draining your resources.

3. Don’t Try to Handle Complex Issues Alone

Responding to certain IRS notices, especially those related to audits, can be intricate and overwhelming. Trying to manage this on your own can lead to misunderstandings, incomplete responses, and missed opportunities for relief programs.

What to Do Instead: If your IRS notice involves an audit or a significant amount of tax debt, seek assistance from a tax resolution specialist. These professionals know how to navigate IRS procedures and can represent your best interests. They’ll help ensure that you provide accurate responses, avoid missteps, and explore options for reducing penalties.

How a Tax Resolution Company Can Help

Dealing with IRS notices can be intimidating, but you don’t have to do it alone. A tax resolution company like Tristate Tax Resolution The Rescue Squad is here to make the process easier and more manageable. Here’s how we can assist:

Reviewing Your Notice: We’ll help you understand exactly what the IRS is requesting and determine the best way to respond.

Negotiating on Your Behalf: Our tax resolution specialists work directly with the IRS to explore options like installment agreements, Offers in Compromise, or Currently Not Collectible status.

Stopping Collection Actions: If the IRS is threatening liens, levies, or garnishments, we can work to halt these measures while we resolve your case.

Keeping You Compliant: We’ll also guide you in staying on top of future tax obligations to avoid similar issues.

At Tristate Tax Resolution The Rescue Squad, we have the experience to manage any IRS situation effectively. Don’t let an IRS notice become a larger problem. Contact us at 718-841-7317 for a free 15-minute consultation, and let’s tackle this together.