Your client got a notice, now what?

The IRS is back in full force, and notices are landing in mailboxes faster than many tax pros can keep up with. Your client forwards one to you with the subject line, "Please help." What happens next is your opportunity to demonstrate calm, professionalism and strategy — or to get pulled into a spiral of unbillable panic.

Here’s how to manage IRS notices with clarity, control and client confidence.

Step 1: Get the full notice, not a screenshot

Many clients send a blurry photo of the top half of the notice. That's not enough. You need:

• The entire notice (every page)
• The envelope, to confirm the postmark
• Any prior IRS communication sent on the issue

Train clients early; you can't help without complete information. Please set up a secure portal or request that they drop off physical copies, but don't guess based on partial scans.

Step 2: Match the notice to IRS transcripts

Don't rely solely on the client's word or the IRS's headline. Log into your e-Services account or the Transcript Delivery System (TDS) and pull the:

• Account Transcript (to confirm balances and payments)
• Return Transcript (to verify what the IRS received)
• Wage and Income Transcript (for unreported income issues)

Compare these to what was filed. A CP2000 or math error notice often reflects mismatched third-party data, not necessarily taxpayer error.

Step 3: Communicate timelines and next steps clearly

Clients panic when they think the IRS is coming for them tomorrow. Help them understand:

• What the notice is about (e.g., missing form, proposed change, late payment)
• Whether a response is required
• The deadline for response or appeal
• What you'll do and when

Use templates or scripts to standardize your messaging. This will make it easier to delegate client follow-up and prevent confusion during the busiest parts of tax season.

Step 4: Evaluate before you respond

Before calling or writing to the IRS, decide:

• Is the notice correct? If so, advise the client accordingly.
• Is the IRS missing something the client already sent? You may need to resend with a cover letter.
• Is the issue related to an ID theft flag or prior-year correction? This may trigger a more involved defense or amended return.

Don't rush to call the IRS without a plan. Holding times are long, and you may only get one shot with a helpful representative.

Example: Matching action to urgency

A client gets a CP504 notice, Intent to Levy a State Refund. They're scared and want you to "fix it today." You pull transcripts and discover they already entered a payment plan online, but the notice was sent before that was processed.

You:

• Download a copy of the IA confirmation.
• Check their balance and Collection Statute Expiration Date (CSED).
• Send a brief letter to the IRS confirming the agreement.
• Explain to the client that the notice is resolved.

This approach avoids unnecessary escalation, reassures the client and shows that you understand IRS workflows better than they do.

Step 5: Track and document everything

Use a customer relationship management (CRM), spreadsheet or shared team file to track:

• Notice date and type
• IRS contact attempts and results
• Deadlines for response or appeal
• Action taken (response sent, transcript reviewed, letter drafted)

This is critical when managing multiple notices across a large client base. It also protects you if the client later claims you didn't act on time.

Step 6: Train your staff and your clients

During tax season, your admin or preparer team will likely be the first to see a notice. Make sure they know:

• What types of notices should be escalated immediately
• How to log and label notices in your system
• What to say and not say to the client

Also, include a "notice policy" in your engagement letter or onboarding materials. Set expectations around:

• Turnaround time for review
• Whether notice handling is included in return prep or billed separately
• What clients should do before contacting the IRS on their own

You're not just solving a problem; you're building trust

When handled well, IRS notice resolution strengthens client relationships. You're the calm in the chaos. You save them time, stress and penalties. You show that your value goes beyond tax prep and into full-year support.