Receive a Notice?

What are common reasons you would get a notice? You could receive notices for over/underpaid tax liabilities, unreported items, payroll tax discrepancies, etc. If you have had gotten an Internal Revenue Service and/or Department of Revenue letter in that mail and put it to the side, this blog is for you. The worst thing that you can do when receiving notices is ignore them.

The first thing you should do is check to see if the letter is accurate. Let's use payroll tax for our discussion. 

Just recently, the IRS issued letters in regards to '941' refunds (payroll). The letter stated that the business owner was due a refund when in reality, they were not. This seems like good news if they owe you, but it's still important to address what it's in regards to. If the refund had been accurate, you should find out what you were doing incorrectly and fix it. 

There have been other cases when they would issue a notice stating that the business owner has underpaid. Again, they key is to check the notice against your records. If you truly do owe, you should get it taken care of immediately. The agencies will assess interest and penalties in addition to any tax liability. This accrues over time. It could end up costing you a hefty expense and a headache.

The safest thing to do if you receive a notice is to reach out to your tax professional who can advise you.