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IRS & State Notice Response

Understand an IRS notice, check it against your records, and prepare a response to the issue raised.

Online service across all 50 states

IRS & State Notice Response planning and financial review

What this service is

An IRS or state tax notice is a letter saying the agency thinks something is wrong, unreported income, a math error, a missing return, a penalty, or a balance due. Most notices have a response deadline and get harder to fix once it passes. We read the notice, tell you what it actually means and how urgent it is, compare the agency's figures with your records, and send a written response. Where the notice is correct, we look for penalty relief and set up a payment plan if you need one.

Forms & documents involved

CP2000 / CP14 / CP504 and similar noticesForm 2848 power of attorneyIRS account transcriptsForm 843 abatement requestForm 9465 installment agreementState notice responses

What we actually do

Read and triage the notice

Identify the notice type, the tax year, the amount in question, and the real response deadline.

Per notice

Get authorization and transcripts

File a power of attorney and pull IRS account transcripts to see exactly what the agency has on record.

Per notice

Reconcile the disputed items

Compare the agency's numbers with your return, 1099s, W-2s, and records to find where the difference comes from.

Per notice

Prepare and send the response

Write the response letter, attach supporting documents, and track it until the agency closes the case.

Per notice

Request penalty abatement

Request first-time abatement or reasonable-cause relief where the facts support it.

As needed

Arrange payment of any balance owed

Set up an installment agreement or other payment arrangement that fits your cash flow.

As needed

Prices by scope

Compare the work included at each price. Your final scope and fee are confirmed in writing before work begins.

Explore the pricing tool
ScopeFee
Notice Review & Response (simple)

A single automated notice (CP2000-style) with a straightforward fact pattern.

From $320
  1. Single issueOne automated notice, records on hand (CP2000, CP14)
    $320
  2. Multiple itemsSeveral adjustments on one notice or two tax years
    $540
Notice Response with Documentation Package

When supporting records need to be gathered and reconciled.

From $620
  1. StandardRecords gathered and reconciled for one year
    $620
  2. Multi-yearTwo or more years, or business records involved
    $1,080
  3. ReconstructionMissing records rebuilt from bank and third-party data
    $1,680
Penalty Abatement Request

First-time abatement or reasonable-cause request, per notice.

From $280
  1. First-time abatementClean compliance history, one period
    $280
  2. Reasonable causeWritten statement with supporting evidence
    $560
  3. Multiple periodsSeveral periods or a denied request to appeal
    $880
Audit Coordination (per audit cycle)

Ongoing coordination for a formal examination; scope confirmed after the initial notice review.

From $1,380
  1. Correspondence examBy mail, one or two issues
    $1,380
  2. Office examMeeting with the examiner, up to 3 issues
    $2,680
  3. Field examBusiness examination at your premises
    From $4,480
Installment Agreement Setup

Payment plan negotiation and setup with the IRS or state.

From $380
  1. StreamlinedBalance under $50K, online agreement
    $380
  2. Non-streamlinedBalance over $50K, financial statement (Form 433)
    $880
  3. Partial pay / hardshipCollection alternatives negotiated with the IRS
    $1,480

Complex or multi-year audits are scoped individually once the examination's actual reach is understood, the figures above cover the typical starting scenarios.

What You Get

Notice Triage & Response Strategy

A read of exactly what the notice is asking for, what the real deadline is, and whether it warrants a full response, a partial response, or a phone resolution.

Documentation & Reconciliation

Pulling together the records that support your original position, reconciled against what the notice is disputing.

Penalty Abatement Requests

First-time abatement and reasonable-cause penalty relief requests where the facts support one.

Audit Coordination

Managing document requests, deadlines, and communication with the examiner throughout a formal audit.

Payment Plan & Resolution Support

Installment agreement setup and coordination when a balance is owed and needs to be resolved on manageable terms.

  • Notice assessment memo explaining what is actually being asked
  • Prepared response package with supporting documentation
  • Penalty abatement request where applicable
  • Written summary of resolution and any follow-up obligations

When this service may fit

  • You received any letter from the IRS or a state tax agency and are not sure whether it requires action
  • A proposed adjustment or balance due does not match your own records
  • You are being asked for documentation to support a return already filed
  • A response deadline is approaching and you have not yet engaged anyone to help

Need help getting your books ready for tax season?

Most notices trace back to records. If the books are behind, we bring them current while we answer the IRS.

IRS & State Notice ResponseThis service
From $320
Catch-Up & Cleanup BookkeepingBring past months current before the return or the IRS response.About this service
From $120 per month of books
IRS Audit RepresentationRepresentation if a notice turns into an exam.About this service
From $620
Tax Compliance & PreparationBusiness and owner returns filed together.About this service
From $780

How It Works

1

Notice intake and urgency assessment within one business day

Read the complete notice to identify the tax period, proposed change, response method, and stated deadline.

2

Documentation gathering and reconciliation against the disputed items

Compare the notice with the filed return, account history, payment confirmations, and earlier correspondence.

3

Response preparation and submission before the deadline

Prepare an issue-specific response with supporting evidence and obtain any authorization required for agency contact.

4

Follow-through until the notice is formally resolved or closed

Track the response and subsequent correspondence, explaining whether the next step is a correction, payment discussion, or separate representation.

Your Role

Send every page promptly, retain the envelope and delivery records, and share earlier letters or payments related to the issue.

Service Scope

A notice response does not automatically include an examination, appeal, collection case, or court proceeding. The notice determines the relevant deadlines; no outcome is guaranteed.

Start IRS & State Notice Response online

Choose the closest scope and send your request online. We’ll confirm the final work and fee in writing before anything begins.

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Frequently Asked Questions

It depends on the notice type, but most carry a firm deadline, often 30 days. Send it to us as soon as you get it, the response window is the main reason notices go wrong.