Letter from the IRS? With BradyRenner, Small Businesses Can Rest Easy

Published by BradyRenner CPAs | November 6, 2023

A letter from the Internal Revenue Service or IRS. Photographed with a macro lens.

For small business owners, receiving a letter from the IRS can be a stressful experience. There are a number of reasons that the IRS might contact your business, including any and all issues related to your federal taxes such as taxes paid, payments due, or perhaps a line item in your tax return that requires clarification. Included in a letter from the IRS will also be specific instructions on how to proceed.

Time is of the Essence

Regardless of the reason, responding to the IRS in a timely manner is essential. While it might be daunting to receive such a communication, BradyRenner has the knowledge and experience to help you navigate your small business’s communications with the IRS.

What is Wage Garnishment?

The IRS may contact a small business for any of the reasons noted above, but one of the most common reasons is because one of their employees is being subjected to wage garnishment. This means that the government has a court order requiring you to withhold a portion of an employee’s wages in order to pay a debt such as an outstanding tax bill or child support. The Consumer Credit Protection Act (CCPA) prohibits you as the employer from letting an employee go for an initial garnishment, but should there be another debt for which your employee’s wages are garnished, the CCPA does not shield them from being discharged. Wage garnishment does not negatively impact your business’s standing with the IRS.

Beware of Scams

Unfortunately, scammers like to capitalize on the worry caused by contact from the IRS. In order to prevent becoming the victim of an IRS-related scam, you should be aware of how the IRS might contact you as well as how it won’t ever contact you. 

The main way in which you can expect to be contacted by the IRS is through a physical letter arriving by mail. While there are rare occasions where an IRS representative might present themselves physically at your business, this is not common. If someone comes to your business, you can contact the IRS by phone in order to confirm their identity. 

Some common scam tactics which the IRS itself will never utilize include: 

  • Emails requesting personal and/or financial information
  • Voice messages of an urgent or even threatening nature
  • Threats of sending local law enforcement if you do not immediately provide payment
  • Demanding immediate payment via check to a third party, a wire transfer, or the purchase of prepaid debit or gift cards

Because phone numbers can easily be spoofed, your caller ID might indicate that you are receiving these calls from the IRS, so this is not a reliable source of verification. If your business receives any suspicious calls, they should be reported immediately to the Federal Trade Commission. Do not fear repercussions from the IRS for hanging up. You can disconnect the call and call the IRS yourself to verify your current tax bill or log in to the IRS’s website.

How BradyRenner Can Help

As part of a suite of business services, BradyRenner clients can bring any communications from the IRS to our reliable staff instead of attempting to go it alone. Together with our experts, your small business can craft an appropriate response to the IRS as well as a suitable plan of action. BradyRenner can also write a letter on a client’s behalf and send it to the IRS. For clients that allow BradyRenner to maintain Power of Attorney, we can also call and speak with the IRS directly on their behalf. Small business owners have many other important tasks and obligations to tend to without having to also deal with the stress and demands of responding appropriately to IRS issues. 

Additionally, with the tax professionals of BradyRenner handling your IRS communications, you can rest easy that your small business will avoid becoming the victim of one of the many tax-related scams currently being utilized by predatory individuals. 

If you have been contacted by the IRS and are worried about what to do next, contact BradyRenner for peace of mind and help navigating your next steps. The professionals at BradyRenner have combined decades of experience addressing IRS issues and are ready to help you get back to focusing on your business. And please come back soon for the next installment in this series which will explore the professional connections and skill advancement services BradyRenner provides for growing small businesses.