IRS Audit Help: What to Do When You Get That Letter (and Why You Need an EA)

2026-07-09

Last reviewed: July 9, 2026. This article reflects current IRS rules and EA exam requirements as of this date.

You open your mailbox and there it is: an IRS letter. Your stomach drops. Before you do anything else, read this.

Don't Panic. Don't Ignore It.

IRS notices aren't optional. Every letter has a deadline, and missing it makes things worse. More penalties, more interest, and fewer options to fix the problem.

But rushing to respond without understanding the situation can be just as bad. Admitting to something you don't owe or agreeing to a payment plan you can't afford creates problems that are harder to undo than the original notice.

The First 3 Steps

1. Read the letter carefully. The IRS sends dozens of different notices. A CP2000 (proposed adjustment to your return) is very different from an LT11 (notice of intent to levy). Know what you're dealing with before you act.

2. Gather your records. The notice will reference a specific tax year and a specific issue. Pull that year's return, all supporting documents, and any correspondence with the IRS related to that year.

3. Call an Enrolled Agent before you call the IRS. Once you contact the IRS yourself, you've started a process that's harder to manage. An EA can review the notice, assess whether the IRS is correct, and represent you in all communications from that point forward.

When the IRS Actually Wants More Money

If the notice says you owe additional tax:

Verify the math. The IRS's automated matching system flags discrepancies between what you reported and what third parties (employers, banks, brokers) reported. Sometimes those third-party reports are wrong.
Check for missed deductions. If the IRS is increasing your income based on unreported 1099 income, look for offsetting expenses you may have missed.
Evaluate your options. You may be able to dispute the adjustment, request penalty abatement, set up an installment agreement, or submit an offer in compromise. but each option has eligibility requirements and consequences.

When the IRS Threatens Collection

Letters using words like "levy," "lien," or "seizure" require immediate attention. The IRS has broad collection powers, including:

Bank account levies
Wage garnishment
Federal tax liens
Asset seizure

A Collection Due Process (CDP) hearing gives you the right to challenge collection actions before they happen. But CDP rights have strict deadlines. Typically 30 days from the date of the notice. Miss the deadline, and you lose the right to a pre-collection hearing.

Why an Enrolled Agent (Not Just Any Tax Preparer)

Only three types of professionals have unlimited IRS representation rights:

Enrolled Agents (licensed by the IRS)
CPAs (licensed by state boards)
Tax attorneys (licensed by state bars)

Regular tax preparers, AFSP certificate holders, and PTIN-only preparers can prepare returns but cannot represent you in an audit, appeal, or collection matter.

Enrolled Agents are tax specialists. Every question on the SEE exam is about tax. They're trained specifically in IRS procedures, representation, and tax controversy. If you're dealing with an IRS notice, an EA is exactly who you want on your side.

How to Find an EA

IRS Directory of Federal Tax Return Preparers: Search by credential and location at irs.gov
NAEA Find an EA: The National Association of Enrolled Agents maintains a directory at naea.org
Local referrals: Ask your financial advisor, attorney, or business network

EA representation costs far less than a tax attorney and provides the same level of IRS access for the vast majority of cases.

If You're Considering Becoming an EA Yourself

The IRS processed 139 million returns in 2026 and is ramping up enforcement. Millions of taxpayers will receive notices this year. Someone has to represent them.

EA Dojo has 4,006 free practice questions covering all three SEE exam parts. including the full Representation section that covers exactly this material. Flashcard mode. Instant grading. No account needed.

Need to look up a specific IRS form? Check the IRS Form Lookup — search by number or name. Purpose, filing rules, key sections, and EA exam relevance for 19 common forms.

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