You Got an IRS Audit Notice, Here’s Exactly What to Do (and How an Enrolled Agent Helps)

Few pieces of mail land in your mailbox with quite the weight of a notice from the IRS. Your stomach drops, your mind races, and the worst-case scenarios start writing themselves. Take a breath. An IRS notice is not an accusation, and it is rarely the emergency it feels like. The vast majority of notices are routine, and almost all of them are manageable, especially when you don’t face them alone.

As Enrolled Agents, we’re federally authorized to represent taxpayers before the IRS, and helping Bay Area clients respond to notices and audits is a core part of what we do. Here’s exactly how to handle that letter, what the IRS can and can’t do, and where a professional makes the biggest difference.

First: don’t panic, and don’t ignore it

The single worst thing you can do with an IRS notice is nothing. Most notices carry a response deadline, often 30 days, and missing it can turn a simple question into an assessment, a penalty, or a lien. The second worst thing is to overreact: paying a balance you may not owe, or signing a form you don’t understand, can cost you far more than the notice itself.

Not every notice is an “audit”

People use “audit” for any IRS contact, but most letters are something narrower. A CP2000, for example, simply says the income reported to the IRS doesn’t match your return, often a forgotten 1099 or a brokerage form. A CP14 is a balance-due notice. A true examination usually arrives as a letter requesting documentation. Audits themselves come in three flavors:

• Correspondence audit, handled entirely by mail; the most common by far.
• Office audit, you (or your representative) meet an IRS agent at a local office.
• Field audit, an agent visits your home or business; the most in-depth, and the least common.

Knowing which one you’re dealing with shapes everything about how you respond, and it’s the first thing a representative will pin down.

Remember: the IRS and California’s FTB are two different agencies

California taxpayers can hear from the IRS, from the California Franchise Tax Board (FTB), or both, and the two don’t share a single inbox. A federal adjustment can trigger a state one, and the FTB is well known for aggressive residency reviews. Read carefully to see who is actually contacting you, because the deadlines, forms, and appeal rights are different.

What an Enrolled Agent actually does for you

“Enrolled Agent” (EA) is the highest credential the IRS awards, and it carries unlimited rights to represent taxpayers before the IRS. In plain terms: with a signed authorization (Form 2848), we can deal with the IRS so you don’t have to. That means we:

• Decode exactly what the notice is asking and what’s really at stake.
• Respond in writing, on time, with the right documentation and the right language.
• Speak to the IRS or FTB directly on your behalf, you don’t take the call.
• Push back on incorrect adjustments and pursue penalty relief where it’s warranted.
• If you do owe, negotiate a realistic path forward (payment plans, and in some cases an Offer in Compromise).

Representation isn’t just convenience. A measured, well-documented response from someone who knows the process often resolves a notice faster, for less, and with far less stress than going it alone.

The bottom line

An IRS or FTB notice is a deadline, not a verdict. Open it, understand it, protect your records, and don’t sign or pay anything until you know it’s correct. And if you’d rather not navigate it yourself, that’s exactly what we’re here for, we’ll stand between you and the agency and handle it from here.

This article is general information, not tax or legal advice. Every situation is different; please consult a qualified professional about your specific circumstances.