It’s never a good feeling to get a letter from the IRS or your state tax authority. But if it happens, don’t panic. Many tax notices are routine—and solvable.

June tends to be a common month for agencies to issue notices, especially related to Q1 filings, estimated payments, or missing forms. Whether you manage a fund or a business, here’s what to know—and what to do.

Why You Might Get a Tax Notice

The IRS and state agencies issue notices for a variety of reasons. Here are a few of the most common:

• Missing estimated tax payments
• Mismatches between reported income and 1099s/K-1s
• Late filings or missed deadlines
• Math or entry errors
• Unreported investment activity
• Audit initiation or additional documentation requests

For fund managers, notices often relate to K-1 reporting issues, incorrect EINs, or partnership-level adjustments.

First Steps: Stay Calm and Take Action

Getting a notice doesn’t mean you’ve done something wrong. But it does mean you need to respond. Here’s how to approach it:

1. Read the entire notice carefully. Check the tax year, the issue, and any deadlines.
2. Don’t delay—waiting too long can lead to interest, penalties, or collection efforts.
3. Gather your records: tax returns, payment confirmations, and any related forms.
4. Send it to your CPA or compliance team immediately for review.

What If the IRS Is Wrong?

It happens. If the IRS or your state has inaccurate information, your advisor can prepare a response with documentation to clarify or dispute the notice. Most issues can be resolved with a letter and supporting evidence.

 What Happens If You Ignore It?

Unfortunately, ignoring a notice doesn’t make it go away. You could face:

• Accrued interest or penalties
• Liens or levies
• Delayed refunds
• Withheld licenses (in some states)
• Increased audit risk

Even if you think the notice is a mistake, you must still acknowledge it.

How to Reduce Your Risk of Future Notices

While no system is perfect, there are a few steps you can take to reduce the chances of receiving another notice:

• Stay on top of estimated tax deadlines (especially for pass-throughs and funds)
• File complete and accurate returns—no rushed data entry
• Reconcile all 1099s and K-1s carefully
• Use your CPA as your first line of defense for all filings and correspondence
• Respond quickly to any initial notices to prevent escalation

We’re Here to Help

Getting a tax notice is stressful. But you don’t have to handle it alone.

Our team works directly with the IRS and state agencies on behalf of our clients. Whether it’s a minor adjustment or a multi-year issue, we’ll take care of it—and keep you informed every step of the way.

Contact us today if you’ve received a notice or want to reduce your risk going forward.