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March 2015 • www.CPAPracticeAdvisor.com 21 Ta x notices may be sent for many reasons and are almost inevitable. Perhaps there was an error in fling, or your client was missing some documents. Maybe there was an issue on the I R S's side. W hatever the case, it should be handled quickly and with care. W hen you or your client receive the notice, the frst t h ing you shou ld do is check it aga inst your cl ient's records and the forms you fled on their behalf. Make sure all payments have been correctly accounted for and there is no missing information. If there are any discrep- ancies, work with your client to identif y the cause. Did they forget to provide you with documents or informa- tion? Was there a sofware or hardware glitch? Was an error performed during the fling process? Te sooner you are able to identif y the reason for the notice, the sooner you and your client can get it resolved. Once you have checked the not ice over w it h you r c l ient , pr e pa r e t o r e s p ond q u ic k l y. M a ny t a x not ices w i l l have a dead line to reply and missing t he de a d l i ne c ou ld do more damage, especially if the initial notice had a fairly easy resolu- tion. If the ta x notice calls for additiona l documentation, be sure to work with your client to gather it well before the dead- line. You want to give the IR S e no u g h t i me t o p r o c e s s t he d o c u m e n t a t i o n b e f o r e t h e dead l ine. Li kew ise, if you are appealing a notice, you want to do so i n a mple t i me to avoid bei ng h it w it h a ny add it iona l penalties or fees. A ny cor respondence to the I R S shou ld i nclude a cover let ter w it h you r cl ient's Employer Identifcation Number, the tax year, tax notice number, and a list of any enclosed documents. Each enclosed page should be numbered and also include your client's EIN. Be sure to clearly state your purpose – sup- ply ing the requested informa- tion, requesting an appeal, etc. T he goa l is to get t he mat ter resolved as quick ly and ef fec- tively as possible. Sending docu- ments without any reference to w hat t hey a re for, or v ag uely requesting an appeal w ill only delay the mater and could result i n y ou r c l ie nt i n a d v e r t e nt l y geting fned in the process. T a x n o t i c e s m a y s e e m daunting to your clients and a n ig ht ma re for you r f i r m, but they don't have to be. Remember to meet w it h you r cl ient a nd gather the necessar y informa- t ion u p f r ont . T he n , q u ic k l y respond to t he not ice, clea rly stating your client's position. A Year in the Life of a PAYROLL Accountant is sponsored by SurePayroll and ADP Connect to ADP ® At ADP, we're all about connections — connecting accounting professionals like you to the right resources and opportunities to support your frm's objectives: • Give your clients access to big-business payroll and HR solutions by referring them to ADP • Generate more revenue and simplify payroll processing with our customized platform for accountants • Discover other segments to invest in or retire sooner by selling your client payroll base to ADP When you partner with ADP, you also connect to integrated HR products, retirement and more — everything your clients need to help protect and grow their business. For more information, visit adp.com/accountant or call 1-855-408-3751. The ADP logo and ADP are registered trademarks of ADP, LLC. Copyright © 2014 ADP, LLC. HR. Payroll. Benefts. Payroll Accountant's Checklist for March ✓ Send Forms W-2c to the SSA, if any errors were found ✓ Respond promptly to any SSA notice or request for corrections ✓ If e-fling, make sure data fles are in text format and formatted according to the SSA's EFW2 specifcations ✓ File Copy A of all electronic Forms W-2 with the SSA and Forms 1099 with the IRS by March 31 (or the next business day, if March 31 is a nonbusiness day) ✓ Review and advise individual 1040 clients on W-4 withholding amounts Responding to Tax Notices By Taija Jenkins Y o u h e l p e d y o u r clients prepare and f i l e a n d i t l o o k s l i k e y o u ' v e s u r - vived another tax season. Ten, your client gets a notice from the IRS.