1. Read the IRS Notice before Deciding How to Respond
The balance shown on the page is only part of the problem. First identify what the IRS sent, which tax periods it covers, what action it proposes, and the response date. Those details determine which administrative or court options may still be available.
Match the Document to the Stage of the Matter
| Document or Stage | Main Question | What to Check |
|---|---|---|
| Exam letter or IDR | What information does the IRS want? | Scope, tax periods, and response date |
| Letter 525 or similar 30-day letter | Do you want Appeals review of proposed changes? | Protest instructions and response date |
| Notice of Deficiency | Is prepayment Tax Court review available? | Petition deadline printed on the notice |
| CDP notice | Can a lien or proposed levy be reviewed? | Form 12153 deadline and issues to raise |
Exam letter or IDR
- Main QuestionWhat information does the IRS want?
- What to CheckScope, tax periods, and response date
Letter 525 or similar 30-day letter
- Main QuestionDo you want Appeals review of proposed changes?
- What to CheckProtest instructions and response date
Notice of Deficiency
- Main QuestionIs prepayment Tax Court review available?
- What to CheckPetition deadline printed on the notice
CDP notice
- Main QuestionCan a lien or proposed levy be reviewed?
- What to CheckForm 12153 deadline and issues to raise
For examination procedure and document requests, see IRS Audit Defense.
Do Not Assume Every Deadline Is 30 Days
- Notice of Deficiency: A Tax Court petition is generally due within 90 days, or 150 days in qualifying outside-U.S. .ircumstances.
- Collection Due Process: A timely hearing request is generally due within 30 days of the CDP notice.
- Additional submissions: Sending records or explanations to the IRS does not necessarily extend a Tax Court filing deadline.
Use the deadline stated on the actual notice rather than a date remembered from another tax matter.
2. Separate Liability from Collection before Choosing a Response
A taxpayer can disagree about the amount owed, the way the IRS is collecting it, or both. Those are different disputes. A payment proposal may address collection without resolving whether the underlying assessment is correct.
Ask Whether the Tax Itself Is Still Open to Challenge
- Liability: Review the return, proposed adjustment, penalties, and legal basis for the assessment.
- Prior opportunity: Check whether the taxpayer already had a chance to dispute the liability.
- CDP limits: Underlying liability may generally be raised in CDP when the taxpayer did not receive a statutory notice of deficiency and otherwise lacked an opportunity to dispute it.
For broader federal tax rules, see Federal Income Tax.
Collection Options Depend on Financial Facts
| Issue | Records That Matter | Primary Focus |
|---|---|---|
| Ability to pay | Income, expenses, assets, and debts | Collection alternatives |
| Disputed balance | Returns, transcripts, and prior notices | Liability review |
| Compromise request | Financial disclosures and compliance records | IRS eligibility and valuation rules |
Ability to pay
- Records That MatterIncome, expenses, assets, and debts
- Primary FocusCollection alternatives
Disputed balance
- Records That MatterReturns, transcripts, and prior notices
- Primary FocusLiability review
Compromise request
- Records That MatterFinancial disclosures and compliance records
- Primary FocusIRS eligibility and valuation rules
An Offer in Compromise is one collection option, not an automatic answer to an unpaid balance.
3. Review the Record before Giving the IRS a New Statement
A quick answer can create a new problem if it conflicts with the return, business records, or earlier correspondence. Compare the notice with the documents that explain the transaction and the position already reported before sending a new explanation.
Build a File That Shows What Happened
- Keep the notice, envelope, prior IRS letters, and proof of earlier submissions.
- Gather returns, amended returns, schedules, workpapers, bank records, and supporting invoices.
- For a business matter, preserve payroll files, ownership records, ledgers, and responsible-person records.
- Do not alter, discard, backdate, or recreate records after an inquiry begins.
For employer tax obligations, see Payroll Tax Compliance.
Facts Suggesting Intent Call for a Different Review
- Late filing alone: A missing or late return does not by itself establish criminal intent.
- Intent evidence: False statements, concealed income, altered documents, or inconsistent explanations can change the legal analysis.
- Response planning: When willfulness may be disputed, review the existing record before providing a new narrative to the government.
The goal is a truthful, accurate response that does not add avoidable inconsistencies to the record.
4. Confirm Representation and Any Separate State Deadline
Authorizing a representative does not change the IRS deadline on the notice, and it does not merge federal and state procedures. Keep the scope of representation and any separate state notice clear from the start.
Form 2848 Defines the Federal Representation Scope
- Authorized representative: Attorneys, CPAs, and enrolled agents are among the professionals who may practice before the IRS.
- Scope: Form 2848 identifies the tax matters and periods covered by the authorization.
- Limits: A power of attorney does not authorize every act, and some taxpayer participation may still be required.
Representation can shift communications to an authorized professional, but the taxpayer should still track every statutory deadline.
A Separate FTB Notice Keeps Its Own Timeline
| State Notice | General Timing | Next Step |
|---|---|---|
| Notice of Proposed Assessment | 60 days | File a protest with the FTB |
| Notice of Action after protest | 30 days | File an appeal with the Office of Tax Appeals |
Notice of Proposed Assessment
- General Timing60 days
- Next StepFile a protest with the FTB
Notice of Action after protest
- General Timing30 days
- Next StepFile an appeal with the Office of Tax Appeals
Cal. Rev. & Tax. Code § 19041 sets the 60-day protest period, and § 19045 sets the 30-day appeal period after a Notice of Action. The Office of Tax Appeals now hears these appeals.
5. Frequently Asked Questions
Can I authorize a lawyer to speak to the IRS for me?
Yes. Form 2848 can authorize an eligible attorney to represent a taxpayer for the tax matters and periods listed on the form.
Does an IRS notice always mean I already owe the amount shown?
No. Some notices propose an adjustment or explain review rights rather than demand immediate payment. Read the notice type and instructions before treating the amount as final.
What happens if I miss a Collection Due Process deadline?
If the request is late for a timely CDP hearing but made within the applicable one-year period, the IRS may provide an equivalent hearing. That hearing does not provide the same route to Tax Court review as a timely CDP hearing.
Can I respond to an IRS notice without a lawyer?
Yes. Taxpayers may represent themselves, and eligible CPAs and enrolled agents may also represent taxpayers before the IRS. The appropriate choice depends on the legal, accounting, and procedural issues involved.
6. Review the Notice before Choosing the Next Step
SJKP's attorneys can review the notice, tax periods, response date, prior submissions, and related records before a position is presented to the IRS. The review can identify which rights remain available, what records should be preserved, and whether the matter involves liability, collection, appeal, or a separate state procedure. Contact SJKP to discuss the next procedural step.
22 Sep, 2026
