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Avalara Help Center

Understanding tax notices

This article applies to:

A tax notice is a letter or an email you receive from a tax jurisdiction letting you know about a requirement, an adjustment, or an error involving your tax account. Receiving a tax notice doesn't necessarily mean something's wrong. Some tax notices are informational only, providing updates about tax rate or filing schedule changes.  Legally, we can help you only if we file your returns.

Notice type What it means What you should do
Credit You have a credit balance in your account. Send the notice to us through Managed Returns as long as it relates to sales and use tax. Our compliance team will help you understand refund and credit options. 
 

Special scenarios

  • If the credit is for something other than sales and use tax, we can't process it.
  • If the credit type is a different than the tax type you're registered to file, we may not be able to apply the credit. For example, we can't apply a use tax credit if you're registered to file only sales tax.  
  • If our compliance team recommends that you contact a jurisdiction directly, see departments of revenue and taxing authorities by state
Discrepancy There's an issue with a return we filed on your behalf. Send the notice to us through Managed Returns. After you submit a notice to us, double-check the status to find out whether you need to complete a power of attorney form or answer other questions. 
Filing change A jurisdiction changed how often they want you to file. Update the filing frequency of your scheduled returns.
Rate change A jurisdiction changed a tax rate. Send the notice to us through Managed Returns. Remember to update custom tax rules if the rate change affects them. 
Reminder to file You need to file soon.  Make sure that your filing frequency matches the filing information in the notice. If needed, update the filing frequency. If a state has special requirements, open a support case
Procedures Filing procedures changed.  Update your return instructions. For example, a state may send you notice letting you know that all future returns should be filed electronically. 
Refund payment The jurisdiction has issued you a refund or other payment. Don't forward refund checks or similar payments to Avalara. Those are for you to keep. If you're unsure why you're receiving a payment, contact the jurisdiction that sent it to you.
Other This type covers any other kind of notice, including a lack of filing notice. Send the notice to us through Managed Returns, and we'll help determine next steps. 

Before you submit a lack of filing notice to us...

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