Opening your mailbox and seeing a letter from the IRS can be unnerving. Whether it’s a CP2000, CP504, LT11, or another IRS notice, one thing is clear: it’s important to respond — calmly, carefully, and correctly.
At StratIQ Consulting, we help individuals and small business owners navigate tax notices with clarity and confidence. Here’s what you need to know if that envelope is sitting on your desk right now.
Step 1: Don’t Panic — But Don’t Ignore It
Most IRS letters are not audits or legal threats. They are notifications: something on your return didn’t match IRS records, you may owe a balance, or they need clarification. But timing is critical. Many notices have a 30-day response window. Ignoring the letter could result in additional penalties, interest, or even enforcement action.
Step 2: Identify the Type of Notice
Look in the upper right-hand corner of the notice. You’ll see a code such as:
- CP2000 – The IRS has identified unreported income.
- CP504 – Final notice before the IRS may levy assets.
- LT11 – Intent to seize assets if no action is taken.
- CP14 – Balance due; initial collection notice.
Understanding the notice number gives immediate insight into the issue at hand and the level of urgency.
Step 3: Understand What the IRS Is Asking For
Read the letter carefully.
Are they:
- Proposing a change to your tax return?
- Requesting documentation?
- Assessing penalties or interest?
- Informing you of collection activity?
Compare their claims against your records. If it’s a CP2000, for example, check whether you reported all your 1099 income. If the letter involves penalties or an assessment, consider whether reasonable cause exists for relief.
Step 4: Respond Promptly — and Accurately
If the IRS is wrong, you have the right to dispute. But your response must be timely, organized, and supported by documentation. If the notice is correct and you owe a balance, paying it promptly can reduce further interest and penalties.
In more serious cases — such as when you’re facing a levy, lien, or unresolved back taxes — it’s often best to have a tax professional represent you. At StratIQ Consulting, we handle correspondence and negotiation with the IRS on your behalf, so you don’t have to go it alone.
When Should You Get Help?
You can likely handle a basic math correction or small balance due on your own. But if you’re dealing with any of the following, professional guidance is a smart investment:
- Back taxes over $10,000
- Penalties for late filing or underpayment
- IRS threats of collection or enforcement
- Unfiled prior-year returns
- Business payroll or trust fund recovery penalties
The IRS is not always right. But they are always serious. Responding the right way can protect your finances and your peace of mind.
How We Help
At StratIQ Consulting, we provide:
- Direct IRS correspondence on your behalf
- Penalty abatement and reasonable cause strategies
- Resolution options including installment agreements and offers in compromise
- A calm, experienced presence in a process that often feels overwhelming
Let’s Start with a Quick Call
If you’ve received a letter from the IRS and aren’t sure what to do next, let’s review it together. We offer a free 15-minute consultation to help you understand what the notice means and what action you should take.
Schedule Here: https://calendly.com/brianoptimizes/tax-resolution-consultation