Posted on May 16, 2013

What to Do If You Get an IRS Tax Notice

Each year, the IRS sends millions of letters and notices to taxpayers for a variety of reasons. The IRS has provided these ten things you should know about notices in case one shows up in your mailbox:

10 things businesses should know about IRS notices

# Don’t panic. Many of these letters require a simple response.
# There are many reasons why the IRS sends correspondence. If you receive an IRS notice, it will typically cover a very specific issue about your account or tax return. Notices may require payment, notify you of changes to your account or ask you to provide more information.
# Each notice offers specific instructions on what you need to do to satisfy the inquiry.
# If you receive a notice advising you that the IRS has corrected your tax return, you should review the correspondence and compare it with the information on your return.
# If you agree with the correction to your account, then usually no reply is necessary unless a payment is due or the notice directs otherwise.
# If you do not agree with the correction the IRS made, it is important that you respond as requested. You should send a written explanation of why you disagree. Include any information and documents you want the IRS to consider with your response. Mail your reply with the bottom tear-off portion of the IRS letter to the address shown in the upper left-hand corner of the notice. Allow at least 30 days for a response.
# You should be able to resolve most notices that you receive without calling or visiting an IRS office. If you do have questions, call the telephone number in the upper right-hand corner of the notice. Have a copy of your tax return and the notice with you when you call. This will help the IRS answer your inquiry.
# Remember to keep copies of any notices you receive with the related income tax return for your records.
# The IRS sends notices and letters by mail. The agency never contacts taxpayers about their tax account or tax return by email.
# For more information about IRS notices and bills, visit or see Publication 594, The IRS Collection Process.

Or, leave it to the experts

For Paycor clients who use our tax-filing services, the process of handling an IRS tax notice is much simpler. While the above tips provided by the IRS are still good to know—especially the one about not panicking—the Paycor Tax Department will do the legwork for you.

Our tax experts take care of researching the notice, communicating with the agency and following up with you if there is any other action you need to take, such as providing more information. The Tax Department will get to the bottom of the issue, and clearly communicate with you about anything you need to do.

So, what should you do if you get a tax notice? Paycor tax-filing clients should remember these three simple things:

# Don’t panic!
# Contact your specialist. They will work with the Tax Department to ensure the notice is accurate, communicate with the IRS and determine next steps.
# Always send anything payroll tax-related to your specialist to make sure our records are up-to-date.

Find out more about Paycor’s tax-filing services and see how letting the experts handle it can allow you to get back to growing your business.