Respond to tax notices

This guide covers: opening the notices inbox, reading one notice, uploading a response PDF, and tracking response deadlines.

Tax notices arrive on paper, weeks after a return is accepted, and they live outside the filing pipeline — the agency mails them directly to the business. Payrollix gives every notice a home so the deadline isn't missed: log it once, attach the PDF, and the system tracks the response window and surfaces overdue items at the top of the list. For accountants on the SUPPORT or ADMIN role, there's an additional penalty-protection workflow attached to each notice.

Open the notices inbox

What it does: Lists every IRS and state notice on file for a client, sorted by status with overdue items called out.

Where: Dashboard → Clients → [client] → Tax Notices (/clients/{clientId}/tax-notices).

Steps:

1. Open the client's left-nav.
2. Click Tax Notices.
3. The table shows: Agency · Type · Received · Deadline · Status · Amount · Description · Actions.
4. If anything is past the response deadline, a red banner at the top reads "N notice(s) past response deadline." The deadline column itself turns red for those rows.
5. Use the Status filter (top left) to narrow to Open, In progress, Responded, Resolved, or Closed.

Who: Accountant + SUPPORT. SMB clients see notices for their own company via the client view (read-only).

Notes: Empty state ("No tax notices on file") is normal — log the first one when a letter arrives from the IRS or a state agency.

Log a new notice

What it does: Captures the basics of an inbound notice and (optionally) archives the PDF.

Where: Tax Notices page → Log notice button (top right).

Steps:

1. Click Log notice.
2. Fill in Agency (IRS or two-letter state code), Notice type (autocomplete suggests CP2100, CP2000, CP14, CP504, 226-J, 972CG, etc. — free-text is allowed), and Description (one-line summary). These three are required.
3. Optional fields: Notice number (tracking number on the letter), Notice date (date printed on the letter), Received date (defaults to today), Response deadline, Amount (penalty or balance due), Tax year, Tax period (e.g. Q1, ANNUAL, 2026-03).
4. Add Notes for any internal context.
5. Attach the Notice PDF (optional but strongly recommended — it's archived to S3 next to the filings).
6. Click Log notice.

Notes: Agency code is auto-uppercased. The PDF upload is optional; you can also add it later from the detail page.

Read one notice

What it does: Shows the full record with status transitions, documents, and (for staff) the penalty workflow.

Where: Tax Notices page → Open on any row (/clients/{clientId}/tax-notices/{noticeId}).

Steps:

1. Click Open next to the notice you want.
2. The page header shows the agency, type, notice number, received date, and response deadline (highlighted red if overdue).
3. The left column lists the facts (Agency · Notice type · Notice date · Amount · Tax year · Tax period · Description · Notes).
4. The right column has Status, Resolution outcome (visible once status moves to Resolved/Closed), and Documents.
5. Move the notice through the status pipeline using the buttons: Open → In progress → Responded → Resolved → Closed. Once you mark it Resolved or Closed, a Resolution outcome box appears — write a one-line summary (paid, abated, escalated, etc.) and save.

Who: Accountant + SUPPORT.

Upload a response

What it does: Attaches your reply letter / supporting docs and auto-transitions the notice to Responded.

Where: Notice detail page → Documents card → "Upload response PDF".

Steps:

1. From the notice detail page, scroll to the Documents card.
2. Under "Upload response PDF", click Choose File and pick your PDF.
3. Click Upload + mark Responded.
4. The file is uploaded to S3, linked to the notice, and the status flips to Responded.

Notes: Both the agency notice PDF and your response PDF show up in the Documents list with download links. If presigned URLs aren't available (rare), the file is still archived — you'll see "Archived (presign unavailable)" next to it.

Track deadlines

What it does: Surfaces upcoming and overdue notices so nothing slips.

Where: Tax Notices list page; Celery deadline reminders fire automatically (T-7, T-3, T-1, and daily once overdue).

Steps:

1. Set the Response deadline on the notice when you log it (or edit it later on the detail page).
2. The list page renders the deadline in red on overdue rows and shows an (OVERDUE) tag.
3. The header banner counts overdue items: "N notice(s) past response deadline."
4. Reminder emails are queued automatically when a deadline is set — no extra config.

Notes: Notices without a deadline don't trigger reminders. Always set one if the letter specifies a response window.

Penalty workflow (staff only)

What it does: Determines fault, logs outreach attempts to the customer, and records reimbursement when Payrollix is at fault.

Where: Notice detail page → Penalty workflow card (visible only to ADMIN / SUPPORT users).

Steps:

1. Set Fault determination — options: Provider error · Customer input · NSF · Unsupported jurisdiction · Unknown. Only Provider error notices are eligible for reimbursement under the penalty-protection policy.
2. Log Outreach attempts when you reach out to the customer about the notice — channel (email / phone / other) + note. Three attempts must be logged before provider liability ends.
3. If fault is Provider error and amount is owed, an admin enters the Reimbursement amount (and optional Moov transfer ID) and clicks Record reimbursement. The notice flips to Resolved with the reimbursement details attached.

Who: ADMIN can record reimbursements (money movement). SUPPORT can set fault and log outreach but cannot reimburse.

Notes: This card is hidden for accountant-only and SMB users. See the policy guide on penalty protection for what qualifies as Provider error.

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Related: How Payrollix files your taxes · What happens if a return rejects · Your filing authorization.