Everything You Need to Know About Massachusetts Notice of Intent to Assess Information Request
If you’re a Massachusetts taxpayer, you might receive a notice from the Massachusetts Department of Revenue (DOR) that states their intention to assess more taxes against you. Before taking any action, it’s critical to understand what this notice means, how it works, and what you can do about it. This article will take you through everything you need to know regarding the Massachusetts Notice of Intent to Assess Information Request.
What Is the Massachusetts Notice of Intent to Assess Information Request?
The Massachusetts Notice of Intent to Assess Information Request is an official document that the Department of Revenue sends to taxpayers. The notice is an indication of the department’s intention to evaluate or audit your taxes, and it usually contains specific details that the DOR requires from you. The information request may relate to one or more tax periods, and the request may also focus on different types of taxes. The notice includes a deadline by which you must provide the requested information.
Why Do You Receive a Notice of Intent to Assess Information Request?
The DOR may suspect that there is an error or discrepancy in your tax filings, hence their reason for initiating the audit. Typical reasons for a Notice of Intent to Assess Information Request include unreported income, discrepancies between reported income and expenses, and other issues that suggest underpayment or non-payment of taxes. The DOR may also require additional information or clarification if they believe a tax return was inaccurate or incomplete.
What Should You Do When You Receive a Notice of Intent to Assess Information Request?
Firstly, don’t panic. Receiving a notice of assessment doesn’t necessarily mean that you’re in trouble with the law. However, this should be taken seriously as it could lead to some consequences if it is not well-handled. The first thing you should do is to read the notice well and make sure you understand what the DOR is requesting. Take a close look at the deadline and any other instructions provided to you, and make sure you are well-prepared to meet the DOR’s requirements. If you need more time to gather the information, reach out to the DOR to request an extension.
What Happens If You Ignore the Massachusetts Notice of Intent to Assess Information Request?
If you ignore the notice of assessment, the DOR will make an estimated assessment of your tax liability and begin pursuing collection procedures, which includes but is not limited to, levying your bank account and/or attaching your wages. Additionally, the Department of Revenue will add interest and penalties to your balance owed. All these consequences can lead to significant financial stress and negatively impact your credit score.
The Benefits of Hiring a Tax Professional
If you’re facing a Notice of Intent to Assess Information Request, it’s always in your best interest to hire a tax professional. Tax experts understand the tax laws and regulations relevant to your situation, and they can help you organize your documents and provide guidance on responding to the DOR’s requests. Moreover, engaging a tax professional can help in identifying potential pitfalls and providing advice that helps you avoid making mistakes that could lead to the department pursuing you.
Conclusion
In conclusion, if you receive a Massachusetts Notice of Intent to Assess Information Request, don’t panic. Instead, take the necessary steps to ensure you meet the requests you were given and correct any discrepancies indicated. Ignoring the notice can lead to significant consequences, so be sure to respond by the given deadline. Also, hiring a tax professional can be a smart decision to simplify the process and ensure success in resolving your tax issues.
