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How To Bounce Back From an IRS Collections Notice

This is a guest post by Ariel Black of PayWow; Paywow is an authorized payroll solution designed with the needs of small businesses in mind.

Nothing could ruin a perfectly normal trip to the mailbox more than an unexpected and unwelcomed letter from the IRS. If you have received a letter with a big I.R.S. stamped in red on the front try not to panic. Don’t automatically assume it’s a business tax notice about to levy your account. However, if it is, today we will learn how you can bounce back from an IRS collections notice. 
Tax payer shocked when receiving an IRS Collections Notice

How To Bounce Back From an IRS Collections Notice

Step 1: Pick Your Stomach Off The Ground

After your stomach drops to the floor try and take a few deep breaths. Don’t panic...yet. Each year the
IRS and other state tax agencies send millions of business tax notices to owners like you, delving out little envelopes of sheer panic in the mail. Thankfully the majority of these notices are automatic and are typically harmless.

Step 2: Read The Notice Carefully


No matter the content be sure to read both the front and back carefully. Make sure you understand what it has to say and what it is concerning. Typically these are merely automatic notifications that do not require any action on your part. If this notice is because of a tax mistake on your part be sure to understand the situation clearly.

Step 3: Recognize The Sender

Both the IRS and the state tax agency can send you crucial business-related tax information. Depending on your state, either could be sending you panic via snail mail.

If you question the validity of the notice in question, it is a good idea to contact the agency that sent the notice.

Step 4: Identify The Type of Notice

There are several different types of IRS notices and the most urgent being an IRS collections notice. However, the collections notice will give you all the information you need to process and resolve the issue.

Step 5: Respond Before The Deadline

Once you understand the situation, you should respond immediately. Typically the IRS gives business owners a 30-day deadline for avoiding further action from IRS collections. But it is important to act fast if you receive a business tax notice. If you are still confused, write down your questions and call the corresponding agency. The number for the IRS collections agency will be listed on the notice itself.
 

Moving Forward

Please keep in mind this PayWow blog is purely information and it is not official tax advice. While this blog provides a general guideline for handling business tax notices and IRS collections notices, it is always best to consult a tax advisor or CPA about your specific situation.

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