By Samuel Lambert and Brenn Bouwhuis
Don’t panic!
Many individuals and businesses receive IRS notices at some point. An audit or collection letter does not automatically mean you have done something wrong. The key is to respond thoughtfully and promptly. Never ignore a letter from the IRS. If you feel overwhelmed, it may help to speak with someone you trust for support while you evaluate your next steps.
1. Make Sure the Letter Is Legitimate
Before taking action, confirm that the notice is real.
If you have any doubt, use the contact information listed directly on IRS.gov — not the phone number printed in a suspicious email or voicemail. In general, the IRS initiates contact by mail. Unsolicited phone calls without prior written notice are often scams.
2. Read the Letter Carefully
IRS notices vary widely. Some are routine and request clarification or minor documentation. Others may signal a more involved examination.
Start by understanding:
- What tax year is at issue
- What the IRS believes is incorrect
- What response is required
- The deadline for responding
3. Evaluate the Complexity of the Situation
Some IRS issues are straightforward and can be resolved directly on your own or with the assistance of your accountant. For example:
- A small penalty may be eligible for abatement
- A missing document may simply need to be provided
If you decide to communicate directly with the IRS, keep copies of everything you send. Never mail original documents. Be accurate and professional.
Other situations may be more challenging to address on your own. You may want to seek legal guidance if:
- The IRS is requesting an in-person interview
- The notice asks you to provide substantial documentation
- A large amount of tax is being asserted
- You are facing employment tax issues
- The notice references a “final” or urgent deadline
- You believe there may be significant errors on a tax return
- The situation is escalating or becoming more adversarial
- Complex matters benefit from early strategic guidance.
4. Carefully Choose Professional Help
If you decide to involve counsel, look for an attorney with meaningful experience handling IRS audits, collections, and tax controversies.
Helpful questions to consider:
- How much of their practice is devoted to tax controversy work?
- How frequently do they interact with the IRS?
- Do they have “inside” experience working for the government?
- Will you have direct access to your attorney by email and phone?
The right advisor will focus on understanding your specific situation, explaining your options clearly, and helping you move forward with a practical plan.
In many cases, initial guidance is simply about understanding your exposure and next steps, not launching into costly litigation.
5. Stay Current
Regardless of the issue, continue filing required tax returns and paying current taxes. Staying compliant prevents additional complications and demonstrates good faith.
Final Thought
IRS issues can feel overwhelming, but they are often manageable with timely action and informed decision-making.
Samuel Lambert
Mr. Lambert is a tax attorney who advises nonprofit organizations, businesses, and individuals on complex federal and state tax matters and represents clients in all stages of tax controversy, including audits, appeals, and litigation before the Internal Revenue Service, the Utah Tax Commission, and other administrative agencies. He has extensive experience handling tax disputes and regularly works alongside CPAs to develop effective resolution strategies. Mr. Lambert previously served in the U.S. Department of Justice, Tax Division, where he handled appellate tax litigation nationwide, and has taught federal income and corporate taxation as an adjunct professor at both Brigham Young University and the University of Utah. He maintains an AV Preeminent rating from Martindale-Hubbell and has been recognized by Super Lawyers and Utah Business as one of Utah’s Legal Elite.
Brenn Bouwhuis
Mr. Bouwhuis is a tax attorney who represents individuals and businesses in disputes with the Internal Revenue Service, the Utah State Tax Commission, and other taxing authorities. His practice focuses on all stages of tax controversy, including audits, appeals, and tax litigation before the U.S. Tax Court, the Utah State Tax Commission, and state and federal courts, as well as advising clients on tax compliance and planning matters. Prior to joining the firm, Mr. Bouwhuis spent more than a decade as a senior attorney with the IRS Office of Chief Counsel, where he advised on complex tax matters, trained IRS personnel, and litigated numerous cases involving income tax issues, penalties, collections, and specialized tax topics.