I Received a FBR Notice especially notice to file a tax return, Now What?

Checking the mail can cause headaches on a normal day. There are credit card bills, bank statements, and doctors’ appointment reminders irritating you. The last thing you want added on top of that is a notice from the FBR especially notice to file a tax return, But remember, getting an FBR notice is not always a bad thing. In fact, certain notices are for your benefit. So here are a few things to keep in mind if you see an FBR notice in your pile of mail.

Before the panic sets in, read your notice

There are many reasons why the FBR sends notices. The FBR can send notices for the following reasons:

1. You have not filed a tax return (notice to file a tax return u/s 114)
2. They have a question about your tax return.
3. FBR needs to verify your identity.
4. They need additional information.
5. They need to notify you of delays in processing your return.
6. Your case is selected in automatic balloting for audit.

Check to determine what your notice means

The FBR provides you with information regarding certain notices, especially notice to file a tax return. The certain clause and section detail can be obtained through FBR website. If you have further questions regarding your notice, you can also try contacting the FBR. The notice should contain a contact phone number on the top right hand corner as well.

Gather necessary documentation

If the notice indicates that the FBR is questioning something on your return, you will want to gather certain records. This will likely include gathering the submitted tax returns and all related documents.

Example: If the Notice is challenging a business expense deduction, the taxpayer will want to make sure to gather receipts; Bills, invoices and other records to prove such deduction.

Respond to the notice

This is very important. If the notice requires a response, you will generally want to respond by the specific date listed in order or notice to:

1. Minimize possible additional interest and penalty charges
2. Preserve your appeal rights if you don’t agree with the notice

*Keep in mind: FBR notices may not always be correct. That is why it is important to gather your records and determine for yourself if you agree with the notice.

Respond in time

Every notice have certain duration to respond especially notice to file a tax return u/s 114, if you failed to respond within time. You can be charge with extra penalties or interest. We highly recommend if you receive a notice from FBR, never delay it.

Ask for Time

If you not have requested documents and need some time to compile them, the best way in this situation is to ask for time. Never ignore the deadlines as it can cause you severe obligations.

Reach out for help

If you don’t feel comfortable responding to the notice or need help reckoning out your next step, contact a KLA Pakistan Tax team, we surely get you out from it.

KLA Pakistan provides expert accurate tax consultancy services for salaried to businesses of all sizes. We at KLA Pakistan help you in compliance of Tax Notices and Tax Audit.

Get in touch today — Complex Issues, Specialist Advise!

FOR ALL YOUR TAX RELATED REQUIREMENTS, CONSULT OUR PROFESSIONALS.

You might find these further articles useful:

Why you should Audit your Financial Statement

Advantages and Benefits of Company Registration in Pakistan

Benefits of FBR NTN and online NTN Verification

If Your Goal Is To Get Biggest Refund Possible

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