What to Do When a US Expat Receives an IRS Letter

Receiving a letter from the IRS while living abroad can feel alarming. The good news is that most IRS notices are manageable when handled correctly and promptly.

Read It Carefully Before Reacting

Every IRS notice includes a code (usually starting with CP or LT) in the upper corner. This code identifies exactly what type of notice it is. Common notice types for expats include:

• CP14 — Balance due notice

• CP2000 — Income mismatch between return and IRS records

• Letter 12C — Additional information needed to process your return

• LT11 — Serious collection warning requiring immediate response

Don't Ignore It

The IRS only contacts taxpayers by mail. If the notice is real, ignoring it will lead to penalties, interest, and escalating collection actions.

Living abroad does not pause these deadlines. Allow for mail delivery delays when calculating your response window.

Verify the Notice Is Real

Scammers frequently impersonate the IRS. Real IRS letters:

• Are sent only by postal mail, never email or text

• Include your name, SSN or TIN, and tax year

• Reference a specific notice code

• Never demand unusual payment methods

Most Expat Notices Are Informational

Many IRS letters to expats are not about unpaid taxes. They often relate to:

• Missing supporting forms

• Income discrepancies from FATCA third-party reporting

• FBAR-related questions

• Address mismatches

How to Respond

• Follow the instructions on the notice precisely

• Respond within the stated deadline

• Keep copies of everything you send

• Request an extension if more time is needed

When to Seek Professional Help

IRS agents rarely specialize in international tax. If the notice involves foreign income, FBAR, or back taxes from multiple years, professional guidance prevents mistakes that can worsen the situation.

Exemplary helps US expats understand IRS notices, respond correctly, and resolve issues without unnecessary escalation or penalties.