--- title: "Got a Tax Notice? What to Do First | MCC Solutions" description: "Read it, compare it to your records, decide who responds and answer in writing before the deadline. Worked example." url: "https://mcc-solutionsnj.com/bookkeeping/guides/what-to-do-when-you-get-a-tax-notice" --- Bookkeeping guide · Updated October 12, 2026 # What to Do When a Tax Notice Arrives in the Mail A tax notice feels alarming, but most are routine: a math correction, a request for information or a balance due. How you handle the first few days matters. These steps apply broadly. Keep in mind that your notice contains its own instructions and deadlines, which you should follow. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** When you get a tax notice, find the agency name, notice number, tax year, date and response deadline, read what the agency says is wrong and what it asks you to do, and put the response date on your calendar at once. Some notices need no action, some demand payment and some require documents. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) · [Trial balance explained](/bookkeeping/guides/trial-balance-explained) · [Owner contribution or loan](/bookkeeping/guides/owner-equity-and-capital-contributions) **Free tools:** [Price per unit calculator](/bookkeeping/price-per-unit-calculator) · [Credit card fee calculator](/bookkeeping/credit-card-fee-calculator) [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## Read the whole notice Find the agency name, the notice number, the tax year, the date and the response deadline. Read what the agency says is wrong and what it asks you to do. Notices differ widely. Some require no action, some demand a payment and some require documents. Put the response date on your calendar at once. Check that the notice is addressed to you and refers to your records. Scammers send fake notices, and the real agencies do not demand payment by gift card or cryptocurrency or by threatening phone calls. If something looks wrong, contact the agency through its published number. ## Do not ignore it and do not panic Ignoring a notice is the worst option because deadlines may carry penalties or lose appeal rights. A quick, accurate response often resolves the issue. If you cannot reply on time, call the number on the notice and ask what options exist. Do not send original documents. Send copies, and keep proof of mailing or an upload confirmation. ## Compare it to your own records Pull the return for the year in question and the books behind it. Many notices come from mismatches between information reported by others, such as forms from payers, and what appears on your return. Find the form or income item named in the notice and check whether it is in your books. Sometimes the agency is right and a form was missed. Sometimes the form is wrong. Sometimes the payer reported someone else's number as yours. ## Decide who responds For simple notices you may respond yourself. For notices about large amounts, audits, penalties or payroll taxes, bring in your CPA, enrolled agent or tax attorney. They can often respond on your behalf if you sign a power of attorney form. Forward the notice to your preparer quickly, along with the return and records. Preparers who filed the return are usually well placed to understand it. ## Respond in writing and keep a file Answer exactly what is asked. Include a short cover letter, copies of the supporting records, and your contact details. Send by a trackable method. Make a folder for the notice with the original, your response, proof of delivery and any later letters. If you agree and owe money, ask about payment arrangements if you cannot pay in full. If you disagree, follow the instructions on how to dispute. Fix any bookkeeping cause so it does not repeat. ## A first-week timeline On day one, read the notice, log the response date and take a photo of every page. On day two or three, send a copy to your preparer and pull the related return and records. By the end of the first week, decide who will respond, whether you need an extension of time, and what documents are missing. Working to a simple schedule keeps stress lower and leaves room for a polite request for more time if you need it. Agencies often grant it when asked before the deadline. ## Worked example with numbers A notice says you owe $842 for a missing 1099 income item. Read the notice number, tax year, deadline and amount. Compare to your books: you find the $2,300 payment in your records, reported on a corrected form that was never sent. Gather the evidence, write a short response explaining the difference and send it by the method on the notice before the deadline, keeping a copy and proof of mailing. ## Mistakes that cost money Ignoring the notice. Paying without checking. Responding by phone with no written record. Missing the deadline. ## Check your work Start a folder for the notice, your response and every reply received. ## Common questions **Does every notice mean an audit?** No. Many are automated corrections or information requests. Read the notice to see which type it is. **Can my bookkeeper respond for me?** A bookkeeper can gather records, but representation before a tax agency generally needs an authorized representative. Ask your CPA or enrolled agent. **Does MCC Solutions represent clients before tax agencies?** We help organize records and bookkeeping that support a response. Representation should come from a qualified tax professional. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) More guides - [Building a Response File From Your Books for a Notice](/bookkeeping/guides/building-a-tax-notice-response-file-from-your-books) - [Keeping Audit-Ready Business Records Year-Round](/bookkeeping/guides/keeping-audit-ready-business-records) - [Scanning and Storing Business Records Digitally](/bookkeeping/guides/scanning-and-storing-business-records-digitally) - [Amended Tax Returns: The Concept and the Books Behind Them](/bookkeeping/guides/amended-tax-returns-concept-and-bookkeeping-role) Free tool - [Bookkeeping health check](/bookkeeping/health-check) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Sole Proprietor Tax-Time Organizer Gather everything your tax preparer will ask for in one place, spot 1099s that do not match your records, and hand over a clean one-page summary. [See what's inside ($24)](/toolkits/sole-proprietor-tax-time-organizer) [Free sample](/toolkits/sole-proprietor-tax-time-organizer#free-starter)14-day full refund Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)