Opening your mailbox to find a certified letter from the IRS or the New York State Department of Taxation and Finance is stressful. However, panic and avoidance are the two worst reactions to a tax notice.

Tax agencies issue notices for many routine reasons, ranging from simple math discrepancies (CP2000) to full desk and field audits.

Step 1: Do Not Ignore the Deadline

Every official notice contains a specific response deadline (typically 30 to 60 days). Ignoring the letter does not stop the process — it simply forfeits your administrative appeal rights and allows the tax authority to assess statutory penalties and interest or issue levy notices.

Step 2: Understand the Nature of the Inquiry

Common audit types include:

  • Automated Matching Notices (CP2000): The IRS computer system detected a discrepancy between income reported on your 1040 and forms submitted by third parties (W-2s, 1099s, K-1s).
  • Correspondence Audits: A request to mail in supporting documentation for specific deductions, such as charitable contributions, vehicle expenses, or business travel.
  • NYS Residency Audits: New York State closely scrutinizes taxpayers claiming statutory residency outside New York or moving out of state.

Step 3: Secure Direct CPA Representation

As a licensed New York Certified Public Accountant, David Valvik possesses statutory representation rights before the IRS and the NYS Department of Taxation. With a signed Power of Attorney (Form 2848 or NYS POA-1), we manage all direct communications, phone conferences, and document submissions on your behalf.

You never have to speak directly with an auditor or risk volunteering unnecessary statements that could broaden the audit scope.