How should taxpayers respond to IRS notices if they disagree with the proposed position?

• A. Ignore the notice.
• B. Pay the amount in full immediately.
• C. Review the notice, gather evidence, file a protest or request an appeal, and consider scheduling a conference with the examiner or Appeals.
• D. Request a conference only after the Appeals process begins.

Answer: (C)

The main idea is to actively engage with the IRS notice when you disagree. Start by carefully reviewing what the IRS is proposing and identifying the exact issues you dispute. Then gather all evidence and documentation that supports your position—your tax return calculations, receipts, records, third-party statements, and any additional notes that clarify why the proposed position is not correct.

Next, file a protest or request an appeal as instructed on the notice, within the required timeframe. This formally puts your position on the record and triggers the IRS review process. If it helps your case, consider scheduling a conference with the examiner who issued the notice or with IRS Appeals to present your evidence, ask questions, and discuss a possible resolution.

This approach preserves your rights to challenge the position and often leads to a resolution without going to court. Ignoring the notice or paying the amount without contest can forfeit the opportunity to contest and may lead to unnecessary interest or penalties; delaying until later conferences is usually not advantageous unless you’ve already collected substantial supporting documentation.