What Does an IRS Letter 903 Mean — And What Should You Do About It?

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Payroll taxes can be a major hassle for business owners, to the point that they often get neglected when other concerns arise. The IRS is rarely far behind, however, and these days, the agency is especially keen to take action as it deals with significant shortfalls.

The 903 letter, in particular, represents a renewed effort to collect unpaid taxes. It also serves as an early warning for delinquent taxpayers.

What Does IRS Letter 903 Mean?

Above all else, a 903 letter is designed to let you know that the IRS is well aware of your unpaid taxes. While this letter can feel like a nasty surprise, it actually represents one of the agency’s most unobtrusive means of getting you on track. The goal: to convince you to pay up without the need for more aggressive action. 

What Happens After You Receive IRS Letter 903?

If you’ve received the unwelcome surprise of a 903 letter from the IRS, serious changes are warranted for your payroll tax situation. Thankfully, this letter should arrive free of consequences — for now. If you wait too long to make adjustments, you could face harsh penalties.

Your response to IRS Letter 903 will largely depend on the nature of your unpaid taxes. In general, however, it’s in your best interest to work with a tax specialist. This professional can help you determine the next best steps to resolve your debt.

If you neglect to work with an enrolled agent or otherwise make arrangements with the IRS, follow-up action is likely. Potential consequences highlighted in the Internal Revenue Manuals include the “prompt assessment of unpaid liabilities,” as well as civil or even criminal action, if necessary.

As soon as you receive a 903 letter from the IRS, contact the Highland Tax Group to learn more about your options for resolving the situation. You’ll be glad to have an enrolled agent in your corner.