What to Do If You Get an IRS or NJ Division of Taxation Notice

First, actually read the whole notice

It's tempting to skim a government letter and assume the worst. Notices usually state clearly what they're about: a discrepancy between what you reported and what a third party reported, a math correction, a missing form, or a request for documentation supporting something on your return. The notice number, usually in the top corner, tells you what type of notice it is and often what response is expected.

Check the deadline

Most notices include a response deadline, often 30 days. Missing it can limit your options, for example, the ability to dispute a proposed change before it becomes final. Even if you're not sure how to respond yet, noting the deadline and starting the process well before it arrives gives you room to figure things out.

Don't assume it's correct, and don't assume it's wrong

Notices are often generated by automated matching, comparing what you reported to what employers, banks, or clients reported to the IRS or state. Sometimes the notice is right and reflects something genuinely missing from your return. Other times, the mismatch is due to a timing issue or an error on the third-party form. Either way, the right first step is figuring out which one it is, not assuming.

Respond with documentation, not guesswork

If the notice asks for support for a deduction, credit, or income figure, gather the actual documentation, receipts, statements, prior correspondence, rather than responding based on memory. A clear, documented response is generally resolved faster than a vague one.

When it's worth getting help

Simple notices, like a straightforward math correction you agree with, are often fine to handle on your own. Notices involving larger dollar amounts, proposed penalties, audits, or anything you don't fully understand are worth having a preparer review before you respond. Once you've responded to a notice, it's harder to walk back an answer that turns out to be incomplete or incorrect.

This article is for general informational purposes and isn't personalized tax advice. Tax rules and thresholds change from year to year, confirm current figures with your preparer or directly at IRS.gov and nj.gov/treasury/taxation before filing.