My Analyst is Spending HOW Long on that Notice?

While some tax notices don't require responses, most of these letters demand your attention. The time you have to reply to the notice or take relevant action can vary from several months to only 30 days. 


Failing to respond could lead to many unpleasant consequences, including fines, penalties, tax liens, and other issues with the IRS. If your analyst spends weeks processing this type of correspondence, you must learn how to reduce notice response time. Otherwise, you could lose thousands of dollars. 


This post will discuss how long notice response times happen and what steps you can take to prevent your analyst from spending too much time on each notice. We'll also cover how NOTICENINJA, our comprehensive tax notice management solution, can be vital in maintaining good standing with the IRS. 


Why Analysts Might Spend So Long on Notices  


Many business owners don't realize that their analysts take too long to handle notices. Since these specialists are overwhelmed with multiple tasks, they could be letting some of the letters slip through the cracks. 


While the time spent on notices differs from company to company, it's hardly unusual for them to sit unopened for one to two months. In many cases, companies can take as much as 90 days to respond to notices due to high backlogs in sorting through everything they received. 


Such considerable wait time results from multiple factors, including high volumes of work, lack of knowledge about response deadlines, and absence of high-quality automation tools. 


The Dangers of Missing Notices  


Failing to respond to tax notices on time may lead to penalties, fines, and even legal actions from tax authorities. The IRS has the power to impose levies on bank accounts, seize assets, and even shut down operations. 


Non-compliance can result in the accrual of interest on unpaid taxes, further exacerbating financial burdens. If you keep missing notices, you could face a higher scrutiny of your company's financial records. 


How to Reduce Notice Response Time 


The simplest way to reduce notice response time is to organize all incoming tax notices. Filing these notices properly can help you keep track of each notice and avoid missing the deadline.


If you have all notices stored in a centralized digital location, you can monitor response dates and make sure to take action before the deadline by prioritizing essential notices. 


An organized approach to handling notices quickens notice response time and gives you a transparent picture of your tax situation. That can help prevent unnecessary audits and ensure timely reactions. 


Using Software to Speed Up Notice Responses 


One key reason your analyst spends too much time dealing with tax notices is having to sort and upload each notice manually. Many companies still use simple tools like Microsoft Excel to track active notices, which can lead to manual errors and missed notices. 


The best way to ensure timely responses and avoid serious consequences is to use a comprehensive tax notice organization solution like NOTICENINJA. It can streamline your notice processing by: 

  • Using advanced Optical Character Recognition (OCR) scan-to-capture technology to upload all notices with a 98% accuracy rate. 
  • Converting all notices into editable file format for easier reading and analyzing 
  • Offering a library of pre-set templates for responding to each type of tax notice 
  • Creating a centralized data repository for tax notice analytics 

Essentially, NOTICENINJA acts as a digital employee, taking the burden off your analyst's shoulders and ensuring a faster notice response time. 


Optimize Your Notice Response Time with NOTICENINJA 


Taking just one extra day to respond to a tax notice could incur significant fines and reputational damage to your business. Figuring out how to reduce notice response time is essential to keeping your company compliant. 


NOTICENINJA is a comprehensive notice processing software that efficiently organizes tax notices and help you craft timely responses. Reach out to learn more about how it can help your business succeed today.