What to Do If You Get an IRS Notice in Arizona

Getting a letter from the IRS can be stressful, but most notices are routine and many are resolved without much trouble. The first step is to read the notice carefully from start to finish. It will include a notice number in the upper right corner — common ones include the CP14, which tells you that you owe a balance on your taxes, and the CP2000, which means the income the IRS has on file does not match what you reported on your return. An audit letter is more serious: it means the IRS has selected your return for examination and will ask you to provide documentation. Knowing which type of notice you received helps you understand what the IRS is asking for and how urgent the matter is.

Pay close attention to any deadlines printed on the notice. Many notices require a response within 30 or 60 days, and some — like a Notice of Deficiency — give you 90 days to petition the Tax Court if you disagree. Do not ignore the notice, even if you believe it is wrong. Failing to respond can lead to additional penalties and interest, or the IRS may simply assume its figures are correct and move forward with collection. If the notice says you owe money, compare the IRS's numbers against your own tax records before doing anything else. Simple errors, such as a missed 1099 or a math mistake, are common and can often be corrected with a short written response.

Keep copies of everything. File the notice with your tax records for the year in question, and gather any documents that support your position — receipts, pay stubs, bank statements, prior tax returns, and any correspondence you have already sent or received. You can also request a free tax transcript from the IRS, which shows what the IRS has on file for you, including income reported by employers and banks. Having organized records makes it much easier to understand what happened and to respond accurately and on time.

If you cannot pay the full amount right away, the IRS offers several payment options. An installment agreement lets you pay the balance over time in monthly installments. If you genuinely cannot afford to pay, you may qualify for "currently not collectible" status, which temporarily pauses collection activity. There is also an offer in compromise, which allows some taxpayers to settle for less than the full amount owed, though the requirements are strict. Each option has its own forms, timelines, and consequences, so it is worth understanding them before you choose.

For more serious matters — an audit, a large balance, a potential lien or levy, or a notice you do not understand — it may be worth talking to a tax attorney. Before your meeting, bring the notice itself, your tax returns for the years involved, and any supporting documents you have gathered. A tax attorney can explain your options, communicate with the IRS on your behalf, and help you avoid costly mistakes. Acting early gives you the most options; waiting until a deadline passes or a levy hits your bank account narrows them considerably.

Related reading: IRS Penalties Explained

This article is general information, not legal advice. It does not create an attorney-client relationship.