Responding to IRS Notices and Tax Deadlines

Time-sensitive tax situations including IRS notices, approaching deadlines, and payment obligations require immediate professional guidance to preserve options and minimize penalties.

IRS notices have hard deadlines that matter. Most IRS letters give you 30 days to respond. A CP2000 (proposed changes to your return) or a notice of deficiency allows specific response windows. Missing these deadlines can mean losing your right to dispute in Tax Court and having the IRS assessment become final. The first step is always to read the notice carefully and identify the exact response date.

Extensions buy time but not payment relief. Filing Form 4868 gives you an automatic six-month extension to file your return, but it does not extend the deadline to pay taxes owed. Interest accrues from the original due date, and the failure-to-pay penalty starts immediately on any unpaid balance. If you know you owe, paying as much as you can with the extension request reduces the damage.

Know when you need a CPA vs. a tax attorney. CPAs handle filing, planning, and most IRS correspondence. But if you face potential criminal exposure, owe more than $50,000 in back taxes, or are dealing with liens and levies, a tax attorney provides legal privilege that a CPA cannot.

The pitfall: Ignoring IRS notices does not make them go away -- it removes your options. Every day of delay narrows the paths available to resolve the issue and increases the penalties you accumulate.