Notice Review & Response

IRS & State Tax Notice Assistance

Received a notice from the IRS or your state tax agency? Don’t ignore it.

Fiotax reviews tax notices, explains what they mean in plain English, identifies the required response, and helps you take the right action before important deadlines pass.

Whether the notice relates to a missing tax return, income mismatch, proposed balance due, penalty, payroll tax issue, sales tax matter, or state tax adjustment, we can help you determine what happened and prepare a clear, organized response.

What We Help With

Fiotax assists with many common federal, New York State, and other state tax notices, including:

• IRS CP2000 notices for income reported by employers, banks, brokers, marketplaces, or other third parties that does not match the filed return
• IRS balance-due notices, including CP14 and follow-up collection notices
• Notices proposing changes to an individual or business tax return
• Missing-return and delinquent-filing notices
• Penalty and interest notices
• Underpayment, estimated-tax, and late-payment notices
• Identity-verification and taxpayer-authentication notices
• IRS requests for additional information or supporting documents
• Audit correspondence and examination notices
• New York State Department of Taxation and Finance notices
• State income-tax, sales-tax, withholding-tax, payroll-tax, and business-tax notices
• Notices involving corrected Forms W-2, 1099, K-1, 1095, 1099-K, 1099-NEC, 1099-MISC, or brokerage reporting
• Notices related to tax credits, dependents, filing status, deductions, business expenses, or reported income
• Notices concerning tax liens, levies, collection actions, installment agreements, or payment arrangements

Every notice is different. The most important information is usually the notice number, the tax year involved, the stated issue, the response deadline, and whether the agency is asking for payment, documents, an amended return, or a written explanation.

Our Notice Review Process

1. Submit the Notice Securely

Start by sending Fiotax a complete copy of every page of the IRS or state notice. Do not send only the first page—important instructions, response addresses, payment details, document requests, and deadlines may appear later in the notice.

Please include:

• All pages of the notice
• Any enclosed forms, response vouchers, or worksheets
• The tax return for the year listed on the notice, if available
• Prior correspondence with the IRS or state agency
• Supporting records related to the issue
• Your preferred phone number and email address
• The date the notice was received

A notice should be reviewed as soon as possible. Many letters contain a response deadline, and missing that deadline can make resolution more difficult or limit available options.

2. We Identify the Issue and Deadline

Fiotax reviews the notice to determine:

• Which tax agency issued it
• Which tax year or tax period is involved
• The notice or letter number
• Whether the notice is informational, a request for information, a proposed adjustment, a bill, an audit notice, or a collection notice
• Whether a response is required
• The deadline for responding, paying, protesting, appealing, or providing documentation
• Whether penalties and interest are continuing to accrue
• Whether immediate action may be necessary to avoid collection activity

We then explain the notice in clear language so you understand the issue, your responsibilities, and the potential consequences of taking no action.

3. We Compare the Notice to Your Tax Records

Next, Fiotax compares the agency’s information with the filed tax return and your supporting documents.

Depending on the notice, this review may include:

• Reviewing your federal, state, or business tax return
• Comparing Forms W-2, 1099s, K-1s, brokerage statements, payroll records, sales-tax filings, and bookkeeping records
• Reviewing income reported by third parties
• Verifying deductions, credits, dependents, filing status, withholding, estimated payments, and payments already made
• Reviewing prior-year carryovers, such as capital losses, credits, depreciation, or net operating losses
• Checking whether the agency applied the correct tax rate, payment, credit, or filing information
• Determining whether a return amendment may be appropriate
• Identifying missing documentation or records needed to support your position

Sometimes a notice is correct and payment or a return correction is necessary. Other times, the agency’s records are incomplete, a document was reported incorrectly, a payment was not properly credited, or additional documentation can resolve the issue.

4. We Recommend a Response Strategy

After reviewing the facts, Fiotax provides a practical recommendation tailored to the notice.

Possible response strategies may include:

Situation and Possible Next Step -

The notice is correct

• Pay the balance, request a payment plan, file a missing return, or correct the tax return if needed

The notice is partially correct

• Respond to the portions in dispute and address the portions that are valid

The notice is incorrect

• Submit a written explanation and supporting documents showing why the proposed change should be reversed

Income was reported incorrectly

• Request a corrected Form W-2, 1099, or other information return; provide records supporting the correct amount

A payment was not credited

• Provide proof of payment, canceled check, bank confirmation, or payment confirmation number

A return has an error

• Prepare an amended return when appropriate

Penalties were assessed

• Evaluate whether a penalty-abatement request may be available

The balance cannot be paid in full

• Review payment options, including installment agreements or other collection-resolution strategies where appropriate

A formal appeal is needed

• Evaluate protest, appeal, audit reconsideration, or other procedural options based on the notice and applicable deadline

We will explain the expected scope of work, the documentation needed, the estimated professional fee, and any important timing considerations before moving forward.

How Fiotax Prepares Your Response

Once engaged, Fiotax organizes the response package around the specific issue raised by the IRS or state agency.

A response may include:

• A written explanation addressing the notice
• A point-by-point response to proposed tax changes
• Copies of supporting documents and records
• Reconciliations of income, payments, deductions, credits, or reported amounts
• Corrected calculations when the agency’s computation is inaccurate
• A request to remove or reduce penalties, when supported by the facts
• An amended tax return, if appropriate
• A request for additional time, when available and necessary
• Payment-plan or collection-resolution documentation, when applicable
• A request for agency records, transcripts, or clarification when needed
• A formal authorization for Fiotax to communicate with the agency, if representation is part of the engagement

Our goal is to submit a response that is organized, complete, timely, and easy for the reviewing agent to understand.

Representation and Agency Communication

With your written authorization, Fiotax may be able to communicate directly with the IRS or state tax agency on your behalf. This may include requesting account information, clarifying the notice, discussing the status of a submitted response, or providing additional documents.

For IRS matters, authorization may involve a properly completed Form 2848, Power of Attorney and Declaration of Representative, or Form 8821, Tax Information Authorization, depending on the scope of the engagement. State agencies may have their own authorization forms and procedures.

Representation is handled only after reviewing the notice, confirming the appropriate authorization, and defining the scope of the engagement.

Common Notice Situations

IRS Income Mismatch Notices

The IRS receives information from employers, banks, investment firms, payment platforms, clients, and other third parties. If those records do not match your filed return, the IRS may send a notice proposing additional tax.

Common examples include:

• A Form 1099 was issued after the return was filed
• A brokerage statement was incomplete or reported differently than expected
• A Form 1099-K or 1099-NEC was duplicated, corrected, or overstated
• A retirement distribution was reported but included a non-taxable rollover
• A business income amount was reported without related deductible expenses
• A stock sale was reported without cost-basis information
• A Schedule K-1 was received after filing
• A corrected W-2 or 1099 changed the reported amount

Fiotax reviews the reported items, reconciles the amounts to your records, and helps determine whether the proposed adjustment should be accepted, corrected, or challenged.

Penalty and Interest Notices

Penalties may arise from late filing, late payment, estimated-tax underpayment, payroll-tax deposits, accuracy-related issues, or other compliance matters. Interest generally continues to accrue under tax rules, but a penalty may sometimes be reduced or removed when the facts support relief.

Fiotax can review whether the penalty appears correct and evaluate options such as reasonable-cause relief, first-time penalty abatement where available, correction of an agency error, or other appropriate administrative relief.

State Tax Notices

State notices often involve residency, wage allocation, tax credits, sales tax, withholding, business registration, payroll filings, missing returns, or differences between federal and state reporting.

For New York taxpayers, a notice may involve New York State, New York City, Yonkers, sales tax, withholding tax, corporation tax, partnership tax, or other state-administered matters. Fiotax reviews the agency’s claim, your filing history, and supporting records to determine the appropriate response.

Business and Payroll Tax Notices

Businesses can receive notices for payroll tax deposits, quarterly payroll returns, sales-tax filings, estimated taxes, corporate tax filings, partnership filings, information returns, or delinquent returns.

Business notices should be addressed quickly because unpaid payroll and sales-tax matters may involve additional compliance requirements, escalating penalties, and collection risk. Fiotax helps businesses identify the filing period, reconcile records, correct filing issues, and respond strategically.

What You Should Do Immediately

If you receive an IRS or state notice:

• Read the notice carefully, including all pages and inserts.
• Do not ignore it, even if you believe it is wrong.
• Check the response deadline and place it on your calendar.
• Do not automatically pay the amount before verifying that it is correct.
• Do not file an amended return unless a review confirms that one is appropriate.
• Gather the related tax return, W-2s, 1099s, bank records, bookkeeping reports, proof of payment, and other relevant records.
• Send the complete notice to Fiotax for review as soon as possible.
• Keep copies of everything sent to the IRS or state agency.
• Use trackable delivery when mailing time-sensitive correspondence, when appropriate.
• Continue opening all mail from the IRS and state tax agencies while the matter is pending.

Why Clients Choose Fiotax

Tax notices are often written in technical language and may include unfamiliar forms, tax calculations, response instructions, and procedural deadlines. Fiotax helps turn that confusion into a defined action plan.

Clients work with Fiotax because we provide:

• Clear explanations without unnecessary jargon
• Careful review of the notice and related tax return
• A practical assessment of whether the agency’s position is correct
• Organized documentation and professional written responses
• Support with federal, state, and business tax matters
• Guidance on amendments, penalty relief, payment options, and next steps
• Timely attention to deadlines and response requirements
• Representation support when properly authorized

Our role is not simply to respond to a letter. It is to help you understand the issue, protect your rights, organize the facts, and pursue the most appropriate resolution based on your tax records and circumstances.

If you have received a tax notice, submit it to Fiotax for review promptly.

Important Information

Fiotax’s ability to assist depends on the facts, available documentation, tax years involved, agency deadlines, and the scope of the engagement. Tax results cannot be guaranteed, and each IRS or state notice must be evaluated individually.

Do not disregard an IRS or state tax notice because it appears confusing, minor, or incorrect. Some notices require action within a limited period, and delays can result in additional penalties, interest, loss of appeal rights, enforcement activity, or other complications.