While receiving official IRS notices is rarely a pleasant experience, they can sometimes result from clerical issues or discrepancies involving payment, and can be resolved with ease. However, regardless of whether the issue is simple or complex, it is important for employers to handle these tax notices in the right way.
Determine Whether The Notice Is Genuine
Don’t automatically assume that the IRS notice you’ve received is legitimate. There are many phishing schemes being used today which mimic official correspondence, and which are designed to gather personal information such as social security numbers, addresses, or bank account numbers. Phishing can be done through email or snail mail, and if the letter demands payment, particularly through a specific medium such as by credit or debit card, you should contact the IRS directly to determine if the correspondence is genuine. It should also be noted that it is rare for the IRS to contact employers by phone and they will never ask for any personal details by email.
Read The Notice Carefully
Once you’ve confirmed that the notice you’ve received is genuine, you will next want to review it carefully, reading every line. The IRS will often provide instructions which are specific, especially regarding how the paperwork should be processed or how certain information must be updated. It is also important not to panic; as such notices don’t automatically mean that you owe the IRS money. It could be that a scheduled payment was missed, the totals for the 941 and W-2 don’t match or you under paid or overpaid. Errors typically need an amendment, and the notice is their way of informing you.
Find Out Your Status Within The Affordable Care Act
A number of employers are starting to receive notices which are related to the Affordable Care Act. One feature of this act is that it requires businesses which have a minimum of fifty employees and more who work full time to provide healthcare to both them and any dependents they have. Basic essential coverage must be included, and businesses that fail to comply may be required to provide responsibility payments which are employer shared. The notice you receive from the IRS will clarify the issue and provide instructions for further action, usually within a specific deadline.
Contact Your Payroll Provider ASAP
If you use a third party payroll service, you will need to contact them as soon as possible. They are responsible for handling payroll taxes and issues such as this. In many cases they will have contacts within the IRS who they can call upon to determine what has transpired and how it can be resolved as quickly as possible. A certified public accountant can also provide great advice and tools which can allow you manage the issue.
Always Meet The IRS Notice Deadlines
If you’ve received a notice from the IRS, you can be sure there is a deadline associated with it. While most of these notices can be resolved with ease, failing to meet the deadlines will make matters more complicated. Most deadlines are within thirty days, so be sure to add it to your calendar.