The IRS Does Not Send Mail for Fun
Every piece of mail the IRS sends has a purpose. It might be a request for information, a notice of a balance due, a proposed change to your return, or a deadline that will cost you real money if you miss it. None of it is optional reading.
The biggest mistake taxpayers make is tossing IRS mail in a drawer and hoping it goes away. It does not go away. The IRS has a system, and that system escalates. What starts as a polite CP14 balance due notice becomes a CP501, then a CP503, then a CP504 intent to levy, and eventually a levy on your bank account or wages. Every step you ignore makes the next step worse.
Deadlines Are Real and Enforceable
Many IRS letters contain hard deadlines. A statutory notice of deficiency gives you exactly 90 days to file a petition with the Tax Court. Miss that deadline and you lose your right to challenge the IRS in court before paying. A CDP notice gives you 30 days to request a hearing. Miss it and the IRS can levy your assets without further discussion.
These deadlines are not suggestions. They are jurisdictional. That means no judge can extend them. No amount of explaining will fix a missed deadline. The clock starts when the IRS mails the letter, not when you open it.
What Happens When You Ignore IRS Mail
The consequences depend on the type of letter, but none of them are good. Ignore a balance due notice and the IRS adds penalties and interest every single day. Ignore an audit letter and the IRS will make changes to your return without your input, almost always in their favor. Ignore a levy notice and they will take money directly from your bank account or paycheck.
The IRS can also file a federal tax lien against your property, revoke your passport if you owe more than a certain threshold, and refer your case to a revenue officer who will show up at your door or your place of business.
What You Should Do Instead
Open every piece of IRS mail immediately. Read it carefully. Identify the letter or notice number in the upper right corner. Look for any deadlines. If you do not understand what the letter means or what to do, call a tax professional. Do not call the IRS directly unless you know exactly what you are doing. Anything you say on that call is on the record and can be used against you.
Keep every piece of IRS correspondence. File it by year and type. You will need it if you ever have to prove what the IRS told you and when.
The single most expensive mistake in tax resolution is ignoring IRS mail. Every day you wait costs you money in penalties and interest, and potentially costs you legal rights you can never get back.
The Bottom Line
IRS mail is not something that resolves itself. Every letter is either asking you to do something or telling you something has been done to your account. Either way, you need to know about it and you need to respond appropriately. The sooner you deal with it, the more options you have and the less it will cost you.