The first thing to do is to check the return address to be sure it’s from the IIRS and not another agency.
If it’s from the IRS, the notice will have instructions on how to respond and will provide a website address for you to visit for additional information. Visit I Got a Notice From the IRS for further details including what to do if the notice is not from the IRS.
If you disagree with the notice, call the IRS at the toll-free number on the top right corner of your notice. Please have your paperwork (such as cancelled checks, amended return, etc.) ready when you call. See also Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don’t Agree.
If the IRS has notified you that they have suspended enforced collection on your account because it would create a financial hardship (meaning you would be unable to pay basic reasonable living expenses if the IRS levied) AND your financial situation has not changed, you don’t need to do anything.
If the IRS has NOT notified you that it has suspended enforced collection on your account and you can’t pay the full amount by that date, you need to decide what payment options might work for your situation, and contact the IRS to set up a payment plan or discuss other ways to address your balance.
Being proactive in addressing the tax debt may prevent additional penalty and interest charges and eliminate the need for the IRS to take action to collect the balance. For specifics, see I got a notice from the IRS and Revocation or Denial of Passport in Case of Certain Unpaid Taxes.
If you believe you have an acceptable reason for interest or a penalty to be removed or reduced, you may complete Form 843, Claim for Refund and Request for Abatement, or send a signed statement to the IRS explaining your reasons why. For specific instructions, see Notice 746, Information About Your Notice, Penalty and Interest.
You may wish to check your tax withholding to make sure you have enough taken from your paycheck each pay period or that you have made an accurate estimated tax payment to ensure you do not have a balance due at the end of the year. Too little can lead to a tax bill or penalty. Too much can mean you won’t have use of the money until you receive a tax refund.