# Understand a tax notice and plan the response

Explains what a tax authority letter is asking for, the deadline, and the response options, and drafts a response outline.

- Topic: Legal & Compliance
- Framework: Few-Shot
- Level: Standard
- Tags: Finance, Legal, Plan, Explain & Teach, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/understand-a-tax-notice-and-plan-the-response

## Prompt

```text
Help me understand a tax notice my client (or my business) received and plan the response.

**The notice:** [PASTE the text, with personal ID numbers removed]
**Tax authority and country/state:** [e.g. IRS, state revenue department, HMRC]
**Tax year/period:** [YEAR]
**What we believe is correct:** [e.g. "the 1099 income was reported on Schedule C, not Line 8"]
**Supporting documents we have:** [LIST]
**Date received:** [DATE]

Explain:
1. **What the notice is** - type of notice, in plain English, and what triggered it.
2. **What they're asking for** - payment, information, a signed agreement, or a response.
3. **The deadline** - as stated in the notice, and what happens if it's missed.
4. **Do we agree?** - compare their figures to what I've told you, and list where the difference likely comes from.
5. **Options** - agree and pay, partially agree, or disagree with documentation; when a payment plan or penalty relief request might apply.

Return:
1. A one-paragraph summary for the client.
2. A response outline (not a final letter): the points to make and the documents to attach.
3. A checklist of next steps with dates.
4. Signs this needs a licensed representative (e.g. an EA, CPA, or tax attorney) - such as an audit, large amounts, fraud penalties, or collection action.

Never guess at penalty or interest figures - use [CONFIRM AMOUNT]. Be alert to scam letters: verify the notice through the authority's official website or phone number. General information only, not tax advice.
```

## What to fill in

- PASTE the text, with personal ID numbers removed
- e.g. IRS, state revenue department, HMRC
- YEAR
- e.g. "the 1099 income was reported on Schedule C, not Line 8"
- LIST
- DATE
- CONFIRM AMOUNT

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