Unsure about what to do with a tax notice you received in the mail? Let us handle it for you.
From time to time, you may get notices in the mail from the IRS and/or state agencies regarding your company’s unemployment rate and tax deposit schedule.
Agencies do not send notices to us directly so it’s important that you read and take action before any listed deadlines or effective dates of requested changes. If you get a notice regarding a missing payment or balance owed, please send the notice in full to myteam@accountingprose.com so your accountant can review it.
Follow the steps below to help resolve the notice:
- Identify if the notice is coming from the IRS or a state agency
- Read the notice from front to back.
- Determine what the notice is calling for (i.e. rate change, deposit schedule update, late penalty) and if any action is required.
- Identify the deadline and meet it. Missed deadlines may result in additional notices, penalties, or accrued interest.
- IMPORTANT: Send the notice, in full, to myteam@accountingprose.com. In the email subject line include "Payroll Tax Notice" so that the message will get bumped to the top of our queue.
Notices From the IRS
Deposit schedule change: The IRS sets your deposit schedule for Federal Income Tax based on your previous deposit amounts during the lookback period. Your company will be assigned a semi-weekly or monthly schedule. If the IRS changes your schedule, they might send a notice at the end of the year to let you know. Make sure to note when your new schedule is effective—it’s important to deposit your taxes on time to avoid penalties and interest.
Refund: An overpayment of taxes will result in a credit owed to your company. If this is the case, you’ll receive a notice letting you know. If you’re unsure why the credit exists, reach out to the IRS directly for additional information. If you still have questions, send the notice in full to myteam@accountingprose.com for review before you request the refund.
Amount due: If the notice contains an amount due, call the IRS for more information and send the notice in full to myteam@accountingprose.com so your accountant may review and take action.
Notices From State Agencies
Deposit schedule change: Just like the IRS, if a state agency changes your State Income Tax deposit schedule they might send a notice to let you know. These generally come at the end of the year for the following year, but it’s good to always be on the lookout. Some states will follow your federal deposit schedule and some will not. If you receive a notice, please send the notice in full to myteam@accountingprose.com.
Rate updates: Individual states will audit your company’s unemployment tax rate annually and decide if it aligns with your company’s history. If your unemployment tax rate changes, they’ll send a notice letting you know what the new rate is and when it will be effective. Some states will follow your federal deposit schedule and some will not. If you receive a notice, please send the notice in full to myteam@accountingprose.com.
Refund: An overpayment of taxes will result in a credit owed to your company. If this is the case, you’ll receive a notice letting you know. If you’re unsure why the credit exists, reach out to the state agency directly for additional information. If you still have questions, send the notice in full to myteam@accountingprose.com for review before you request the refund.
Amount due: If the notice contains an amount due, call the state agency for more information and send the notice in full to myteam@accountingprose.com so your accountant may review it.