Tips for Managing IRS Tax Notices to Keep the Volume Low
Depending on how many years you've been in business, you've likely received your fair share of IRS tax notices and can expect to continue seeing them every year. But if you don't stay on top of these tax notices, they can feel overwhelming when they aren't. While the volume of your tax notices will never be zero, there are ways to keep it manageable.
Luckily, at NoticeNinja, we aim to make your life easier. Keep reading to see our tips for managing IRS notices and explain how to keep IRS notice volume low.
Manage Volume by Staying Organized
When you receive multiple letters, it's common to lose track of which ones to prioritize. Staying organized with innovative automated software helps you stay on top of your notices and keep the volume low because it specifies which are duplicates and require a response.
Some tax notices will require more time to complete than others. It's essential to promptly respond to all tax letters, but prioritizing those with a specific due date or requiring additional attention helps you keep a clear view of your tasks. It will also help you maintain compliance to avoid interest and penalty charges and reserve your right to dispute the notice.
Organization Tips for Tax Notices
Knowing that you need to stay organized and putting it into action are two very different things. That's why we've narrowed it down to these four tips to help you keep your tax notice amounts to a minimum. The less time you spend worrying about tax notices, the more time you can focus on running your business.
1. Review Notices Quickly
If receiving an IRS tax notice doesn't evoke a feeling of excitement, you're not alone. However, it's in your best interest to carefully read these letters – and do so quickly – to determine the urgency. It's important to remember that not all IRS notices and letters you receive are necessarily bad, but if the IRS requires a response, you won't want to miss the deadline.
The last thing you want to do is to forget that you received a tax notice and have it get lost on a desk or filing cabinet in your office. The IRS doesn't accept disorganization as a valid excuse. The faster you review your tax notice, the faster you can check it off your to-do list.
2. Send Them to the Proper Person to Respond
When it comes to tax notices, delegating is crucial. Remember that not every employee will have the expertise to respond to all tax notices. Ensure you send each notice to the correct person, such as your CPA or internal tax professional. The sooner your IRS tax notice reaches the right person to get the job done, the sooner you'll have one less notice to worry about.
3. Contact the IRS for Questions or Disputes
If you disagree with an IRS notice, you can file a dispute. If you've been fined an arbitrary amount and have questions about the calculation, this is your chance to do it. However, there are deadlines for filing disputes, and you'll lose your opportunity once you miss the date. If you have any questions or concerns regarding your IRS tax notice, reach out quickly.
4. Avoid Spreadsheets for Notice Tracking
While spreadsheets are usually great for organizing businesses, we don't recommend using spreadsheets to track IRS notices. Spreadsheets don't always share information with everyone who needs to be involved in IRS letters. Furthermore, spreadsheets require humans to enter data and are prone to human error, which can easily lead to mistakes or non-compliance. It's difficult to tell who updated what, and with many people having access, it can lead to errors through mistyping or improper updating.
Stay on Top of Notices with Automation
Automation software is the best way to keep track of your tax notices or letters. Some main benefits of automation software include the following:
- Quickly sort your notices
- Automatically sends them to the proper person
- Helps you stay organized
- Increases transparency by letting everyone see your notices
- Saves you valuable time to focus on more important jobs
- Reduces IRS notice response time
- Lowers IRS notice volume
Don't let IRS tax notices overwhelm you by staying organized with NoticeNinja's automation software. Ditch the old days of manually entering data into spreadsheets and move into automation. Our software will automatically update your information, keeping an accessible database that's available to everyone while specifically notifying the people responsible for responding to the specific notices. By quickly and efficiently handling notices, you can prevent them from reaching a point that will be too much to manage.