Common IRD Letters and What They Mean
Do not ignore it, and do not panic
Most letters from the Inland Revenue Department are routine: a request for a document, a reminder about a missing return, or a question about a figure. They become expensive only when the deadline passes without a reply. The first step is always to understand exactly what is being asked and by when.
Request for information or documents
The IRD is checking something in a return you filed, or one it expected you to file. It usually asks for invoices, bank statements, contracts or reconciliations by a set date. A complete, well-organised reply often closes the matter quickly.
Notice of assessment
An assessment means the IRD has calculated tax it believes you owe, sometimes because a return was not filed, sometimes because it disagrees with your figures. There is a strict time limit to appeal. If you disagree, act quickly: once the appeal window closes, the assessment generally stands.
Penalty, default or demand for payment
These follow a late return, late payment or an unpaid assessment, and interest usually keeps running. It is often still possible to correct the underlying problem, agree a way forward or challenge an incorrect penalty, but only if you respond in time.
What happens after you send it
We read the letter and reply personally, usually within one business day, with what it means, what the IRD needs from you, the deadline, and what we would do in your position. If it is something you can handle yourself, we will say so. If you would like us to prepare the response, we will give you a fixed fee before any work starts.