What to do when an IRS notice arrives in the mail

It's a moment taxpayer's dread. An envelope arrives from the IRS -- and it's not a refund check.

"Don't panic," said IRS Spokesman Michael Devine. "Each year, the IRS sends millions of taxpayers a letter or notice to notify them of a change to their account, request additional information about their return or request payment of taxes." He said each letter and notice will normally cover a very specific issue about your account or tax return and offer specific instructions on what, if anything, you need to do.

For example, if you receive a correction notice, you should review the correspondence and compare it with the information on your return. If you agree with the correction to your account, usually no reply is necessary unless a payment is due. If you do not agree with the correction the IRS made, it is important that you respond as requested. Write to explain why you disagree. Include any documents and information you wish the IRS to consider, along with the bottom tear-off portion of the notice. Mail the information to the IRS at the address shown in the upper left-hand corner of the notice. Please allow at least 30 days for a response. Be sure to keep copies of any correspondence with your records.

Devine said most correspondence can be handled without calling or visiting an IRS office.

However, if you have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the correspondence available when you call to help us respond to your inquiry. For more information about IRS notices, visit the IRS.gov web site and see Publication 594, What You Should Know about the IRS Collection Process. The publication is also available by calling 800-TAX-FORM (800-829-3676).

Remember that the IRS never sends unsolicited e-mails about your taxes and never sends e-mail or call asking for bank account numbers, credit card information, pins, passwords or other personal and financial information.