10 tips to help you deal with an IRS tax notice

February 21, 2025

Secretary of Defense Pete Hegseth recently shared on social media a document he said was a $33,558.16 bill from the Internal Revenue Service.

Hegseth also claimed the tax due notice — the image of which didn’t show any letterhead, address of the sender, or date — was the result of a “rushed” audit.

He then accused the Biden administration of pushing the audit forward, implying political payback, not tax errors, was the reason for the IRS inquiry and subsequent mailing.

Finally, Hegseth told the followers of his personal social media account that as far as the tax audit, he and his wife “will never back down.”

Social media credit to the new Defense Secretary for a tweet that got a lot of traffic. And political points for toeing the umbrage line drawn by his boss, Donald J. Trump.

But from a tax standpoint, Hegseth going public with his pique probably wasn’t a good idea. Instead, he likely would be better service by following the 10 tips below to help you cope if you do receive an IRS notice.

1. Don’t panic. While hearing from the tax collector about your return is always a little unnerving, it doesn’t necessarily mean you’re in for a major audit. Sometimes the agency just wants more information from you. Other times, the IRS has found what it believes is a mistake on your return and wants your help in clearing up the issue. (Hegseth addendum: Don’t angrily share your personal tax situation, even a portion of it, with the general public.)

2. Don’t ignore it. If the IRS says you didn’t pay enough tax, penalties and interest on the due amount will add to any tax liability. If you ignore the matter, the amount you owe will keep growing. Notices also often have deadlines for responding. If you miss them, you’ll find yourself facing more tax troubles. (Hegseth addendum redux: Don’t angrily share your personal tax situation, even a portion of it, with the general public.)

3. Read the notice thoroughly. Each notice has specific instructions, so read it carefully. It will tell you what you need to do, such as provide more information. Or it could explain changes the IRS made to your filing, and how that affects any tax due or refund you were expecting.

4. Know the notices. Even the IRS admits that some of its notices are confusing. It’s working on changing that. If you have trouble deciphering exactly what the IRS wants, call the telephone number that’s usually found in the document’s upper right-hand corner. You also can familiarize yourself with the many types of notices that the IRS sends.

Form 4549

The document Defense Secretary Pete Hegseth shared on social media cited IRS Form 4549. This is the agency’s Income Tax Examination Changes letter, which is issued, along with a cover letter, at the end of an audit.

Form 4549 details the original figures reported, the adjustments made by the IRS, and the resulting tax owed or refund due to the taxpayer, including any penalties or interest charges applied. The IRS’ proposed changes on the form typically are made when the IRS does not accept your documentation or explanation of one or more items on your tax return.

If you understand and agree with the IRS’ proposed changes, you can sign and date the Form 4549, then use the envelope that came with the form to return it and your payment.

However, if you disagree with the IRS’ proposed changes, you have the right to appeal both within the IRS and before the courts. An explanation of how to appeal is included in the letter.

Form 4549 also alerts the taxpayer that the IRS has agreements with state tax agencies to share federal tax information, including increases or decreases, that could affect state tax liability for the period(s) covered by the IRS audit.

See more tax forms and more about them at Tax Forms 2024 and Tax Forms 2025.

5. Double check the numbers. When a notice includes changes by the IRS to your tax account, review the information and compare it with your original return. Nobody’s perfect. The IRS does sometimes make mistakes, so you want to catch them as quickly as possible.

6. If you agree, you’re done. In instances where you agree that the IRS notice information and subsequent tax action is correct, you usually don’t need to do anything else. There’s no need to reply unless the IRS document asks you to, or gives you other instructions, or you need to make a payment. That third situation happened to me the year I overlooked a 1099-DIV, but the IRS definitely didn’t ignore its copy of the form. It calculated the tax (and interest and penalty) I owed, and told me where to send the money.

7. If you disagree, speak up. If, however, you don’t agree with the notice, it’s important for you to respond. Your reply not only will let the IRS know you got the notice (and have an issue with the agency’s position), it also will preserve your appeal rights. The notice will tell you how to respond, which could be via mail, FAX, or digitally through the IRS’ Documentation Upload Tool, which is available now in some tax circumstances.

Whichever method applies, explain why you think the agency is wrong. Include any information and documents you want the IRS to consider. And be sure you send your concerns by the response date cited in the notice.

8. Keep good records. Keeping good records, both of your official forms and substantiating material, is a solid piece of advice even if you never hear from the IRS. But when it comes to IRS notices, you’ll also want to make sure you keep copies of any notices and all follow-up communications and documents.

9. Know when you need help. Many notices are routine and relatively easy for taxpayers to take care of on their own. Some, though, are more complicated or confusing. Or you just don’t want to deal with the IRS yourself. In any of these situations, getting professional tax help is a good move. A reputable tax professional with experience dealing with the IRS can help you through the process in the lease painful and costly way. Plus, you’ll have the peace of mind knowing you have a capable tax pro on your side.

10. Be alert for scams. Most tax scammers tend to show up online or as phone callers, while the IRS primarily communicates with taxpayers by letters and notices sent via the U.S. Postal Service. Sometimes, though, crooks take the paper route (like here, here, and most recently here).

If you suspect the tax notice you received is fake, call 1-800-829-1040 or visit a local IRS Taxpayer Assistance Center. You also can sign up to access your taxpayer account online and check there for any issues. And if you get a call or e-mail after receiving an official IRS notice, don’t be conned into believing it’s a follow-up to your legitimate interaction with the IRS.

Again, if you get a notice, don’t freak out. Don’t post about it online. Just deal with it, as quickly as possible and preferably following the guidance you get from a tax professional.

The more quickly and thoroughly you respond to a tax notice, the less additional time you have to spend with the IRS.

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