IRS notices matched to the filed return, with a response draft ready for review
A client forwards a phone photo of an IRS letter and asks what it means. Someone has to work out which notice it is and when the reply is due, then find the return and the source documents behind it. The agent does that reading and matching and drafts the response. A practitioner reviews the proposed position with the client, and the client or an authorized representative signs as the notice requires.
Examples use invented names and figures.
What the agent does
- Step 1Reads the notice
It names the notice, such as a CP2000, CP14, CP501, CP504 or Letter 4883C, and pulls the reply-by date along with the tax year and amounts. The date goes on the firm calendar the same day.
- Step 2Finds the return
It matches the client and tax year, then pulls the filed return and the source documents from your file. A practitioner with a Form 2848 or 8821 on file pulls any transcript, and the agent reads it once it is in the file.
- Step 3Compares each item
For an underreporting notice it checks each IRS item against the return and marks where it was already reported, such as a 1099-B sale on Form 8949 with its basis. For a penalty notice it checks whether the new automatic exemption should have applied, then the First Time Abate history.
- Step 4Drafts the reply
It drafts the response letter or Form 843 and the client email, with each statement tied to a document in the file, and sets a reminder ahead of the reply date.
A practitioner reviews the proposed position with the client, and any position on the law stays with your staff. The client or an authorized representative signs as the notice requires. Calls to the IRS stay with authorized staff, as do identity verification letters such as Letter 4883C. The IRS Office of Professional Responsibility told practitioners in June 2026 to treat text an AI writes as a draft, and every response the agent prepares is handled as one.
- Notices a month, by type
- Days from receipt to response
- Responses sent before the reply date
- Second notices on the same issue
- Staff minutes per notice
Questions about this agent
Which notices does it handle?
Notices with a clear question and a document trail, such as CP2000 underreporting items and penalty notices. Examinations and disputes that need research go straight to a person, with the notice summarized.
Can it send a response to the IRS?
No. A practitioner reviews each draft and the proposed position with the client, and the client or an authorized representative signs as the notice requires. The agent prepares the letter and the client email, with the supporting pages attached.
Is the volume worth automating?
Count a month of notices first. In the illustrative example in our notice guide, a firm with 40 notices a month gets back close to 6 staff hours a week. That is a real saving but a small one, so notices usually fit best as a second workflow next to document collection, or as a first one for a firm with a tax resolution practice.