Resources
Answers, guides and deadlines in one place
Decode an IRS letter, read a plain-language guide or add every federal deadline to your calendar.
IRS notice decoder
Got a letter from the IRS? Start here.
Find the notice number in the top or bottom right corner of the letter. Look it up below to see what it means and how quickly to act.
Always go by the response date printed on your notice.
- Respond
What it means
The IRS says you owe tax on a return you filed. This is usually the first bill.
What to do
Check that the balance is correct. Pay, or ask us about a payment plan or penalty relief.
Response window: Pay by the date on the notice (about 21 days)
Send us your notice - Respond
What it means
A follow-up reminder that a balance is still unpaid. Interest keeps growing.
What to do
Pay or set up a payment plan now, before notices escalate.
Response window: By the date on the notice
Send us your notice - Urgent
What it means
The IRS still hasn't received payment and is moving toward collection.
What to do
Contact the IRS or let us arrange a payment plan right away.
Response window: By the date on the notice
Send us your notice - Urgent
What it means
The IRS intends to seize your state tax refund and may move on to other property if the balance stays unpaid.
What to do
Act immediately: pay, arrange a plan or dispute the balance.
Response window: By the date on the notice
Send us your notice - Act now
What it means
The final warning before the IRS can levy wages, bank accounts or other assets. It also gives you appeal rights.
What to do
Call us now. We can request a Collection Due Process hearing to pause enforcement.
Response window: 30 days to request a hearing
Send us your notice - Urgent
What it means
Income reported to the IRS (W-2s, 1099s, 1099-Ks) doesn't match your return, so they propose additional tax.
What to do
Don't just pay. Compare it with your records — delivery-app 1099-Ks are often gross amounts — and respond with documentation.
Response window: Usually 30 days
Send us your notice - Act now
What it means
The IRS has determined you owe more tax. This is your chance to go to Tax Court.
What to do
This deadline cannot be extended. Contact us right away to evaluate a response or petition.
Response window: 90 days to petition the Tax Court
Send us your notice - Respond
What it means
The IRS changed your return to fix what it believes is an error, changing your refund or balance.
What to do
Check the correction. If you disagree, we can request a reversal.
Response window: 60 days to dispute
Send us your notice - Urgent
What it means
The IRS needs to confirm a return filed under your SSN was really filed by you.
What to do
Verify your identity online or by phone as the letter explains. The return is on hold until you do.
Response window: As soon as possible
Send us your notice - Informational
What it means
The IRS is reviewing your return before releasing your refund.
What to do
Usually no action is needed. Keep your records handy in case they ask for more.
Response window: No response required
Send us your notice - Urgent
What it means
Your return has been selected for examination by mail or in person.
What to do
Don't contact the examiner unprepared. We can represent you and handle communication.
Response window: By the date in the letter
Send us your notice - Informational
What it means
Confirmation of your new Employer Identification Number. Good news!
What to do
Keep it safe — banks, payroll providers and the state will ask for it.
Response window: No response required
Send us your notice
Guides
Plain-language guides for owners and families
Short, practical reads on the topics our clients ask about most.
Key takeaways
- Employees must report cash and card tips to you; you withhold and pay payroll taxes on them.
- Mandatory service charges are wages, not tips, and don't qualify for the tip credit.
- Form 8846 returns 7.65% of tips above the $5.15/hour threshold as a business credit.
- Large food or beverage establishments file Form 8027 each year.
- Credits from open prior years can often be claimed on amended returns.
Key takeaways
- Groceries for home consumption are generally exempt; prepared food is taxable.
- Soft drinks and candy are taxable even in a grocery store.
- Bakery items sold without eating utensils are generally exempt.
- The combined rate is up to 8.25% (6.25% state plus up to 2% local).
- Monthly filers' returns are due on the 20th of the following month.
Key takeaways
- 1099-Ks show gross sales — before commissions, fees, refunds and promotions.
- Those costs are deductible, but only if you can document them.
- Download annual statements from every platform you use.
- Mismatches between 1099-Ks and your return are a common CP2000 trigger.
Key takeaways
- File an FBAR if your foreign accounts together exceeded $10,000 at any time in the year.
- FBARs are filed with FinCEN by April 15, with an automatic extension to October 15.
- Form 8938 (FATCA) has higher thresholds and is filed with your tax return.
- NRE interest is tax-free in India but taxable in the U.S.
- Indian mutual funds are generally PFICs, with their own reporting rules.
- If you've missed filings, the streamlined procedures can limit penalties.
Key takeaways
- Apply with Form W-7, usually attached to a federal tax return.
- A valid passport alone proves both identity and foreign status.
- Original documents or certified copies are required — not photocopies.
- ITINs not used on a return for three consecutive years expire.
- An ITIN doesn't authorize work or provide Social Security benefits.
Key takeaways
- Owners take a reasonable salary through payroll; remaining profit avoids self-employment tax.
- Running payroll and filing Form 1120-S adds cost, so profit needs to justify it.
- Form 2553 is generally due within 2 months and 15 days of the tax year you want it to start.
- S-Corp returns are due March 15.
- Texas franchise tax applies to LLCs and corporations either way.
Key takeaways
- Payments are due April 15, June 15, September 15 and January 15.
- Paying 100% of last year's tax (110% above $150,000 AGI) is generally a safe harbor.
- Paying 90% of this year's tax also works if your income is falling.
- If you'll owe less than $1,000 after withholding, you generally don't need to pay estimates.
Key takeaways
- Read the whole letter and find the notice number and response date.
- Check that it's real — the IRS starts by mail, not by text or social media.
- Compare it with your return and records before paying anything.
- Respond by the deadline, even if only to request more time.
- Let a credentialed representative handle the communication.
Compliance calendar
The deadlines a food business can't miss
Federal dates for a typical year. We track state deadlines for you as well.
Downloads an .ics file for Google, Apple or Outlook Calendar.
Dates move to the next business day when they fall on a weekend or holiday. State due dates vary.
Glossary
Tax terms, translated
- 1099-K
- Reports payments you received through card processors and online platforms.
- 1099-NEC
- Reports payments to independent contractors for their services.
- AGI
- Adjusted gross income — your total income minus certain adjustments.
- COGS
- Cost of goods sold — what you paid for the food or products you sold.
- EIN
- Employer Identification Number — a business's federal tax ID.
- Enrolled Agent (EA)
- A federally licensed tax practitioner who can represent taxpayers before the IRS.
- FATCA
- Rules requiring Form 8938 reporting of specified foreign financial assets.
- FBAR
- FinCEN Form 114, the annual report of foreign financial accounts.
- Form 8027
- Annual tip income report for large food or beverage establishments.
- Form 8846
- Claims the credit for employer FICA paid on employee tips.
- Form 941
- The quarterly federal payroll tax return.
- ITIN
- Individual Taxpayer Identification Number for people without an SSN.
- Nexus
- A connection to a state that requires you to collect or pay its taxes.
- PFIC
- Passive foreign investment company — includes most foreign mutual funds.
- Prime cost
- Food and beverage cost plus total labor, usually shown as a share of sales.
- Reasonable compensation
- The market-rate salary an S-Corp owner must pay themself.
- S-Corp
- A tax election that passes profit to owners and can reduce self-employment tax.
- Safe harbor
- A rule that protects you from a penalty if you meet a set threshold.
- Service charge
- A mandatory fee added to a bill; treated as wages, not tips.
- Tax treaty (DTAA)
- An agreement between countries to prevent double taxation.
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