I received a letter from the tax office: what are the next steps?

The tax office often communicates with sole proprietors via correspondence. However, most entrepreneurs do not know what to do when they receive a letter from the tax authorities.

What is the purpose of letters from the tax office, and how should you respond?

The tax office's right to make an official request

The tax office may send a request letter for information. This right is established in Article 73 of the Tax Code. The request must be submitted in writing, on paper, and sent to the sole proprietor's registered address.

What mandatory details must be included in the request?

The letter must include the following details:

• the grounds for requesting information;

• a list of the requested data;

• a list of documents that the sole proprietor must provide;

• the signature of the head of the tax office or their deputy, or an authorized representative;

• the tax office’s official stamp.

The request must clearly state the reasons and circumstances. Otherwise, the taxpayer will not be able to provide a justified response.

Upon receiving the letter, the sole proprietor must gather the necessary information requested by the tax office within 15 days. If the request concerns a cross-check, the document package must be prepared within only 10 days.

What if the entrepreneur has already provided the requested information?

In this case, they should prepare a response indicating the date and number of the previous letter where the requested information was already provided. This way, there is no need to resubmit the same data.

Letter regarding a cross-check

The tax office may send a written notice regarding the need for a cross-check. This is not yet a full-fledged audit, but rather a procedure to collect necessary information for tax authorities. In the future, this data may be used for an official audit.

A cross-check helps the tax office obtain the following information:

• data on whether the business activities comply with the law;

• data on the types and volumes of trade and financial operations.

After completing the check, the tax office prepares a report. The sole proprietor receives the document within 10 days. The report follows a standardized format and contains legally required sections. The tax office prepares two copies of the report, both of which must be signed by both parties involved in the cross-check.

How to switch to electronic correspondence with the tax office?

Clause 42.2 of the Tax Code allows electronic communication with the tax office only after completing the following steps:

• the sole proprietor submits tax reports in electronic form;

• the entrepreneur has a personal account on the tax office’s website;

• the taxpayer submits an application to receive letters and other documents via their Electronic Office.

Once these steps are completed, letters will be delivered to the user’s Electronic Office, with notifications also sent to their email.

If the sole proprietor has not provided written consent to receive electronic letters from the tax office, the authorities are required to send them via registered mail or deliver them in person. Conversely, if an electronic request is received without prior consent for electronic correspondence, the entrepreneur is not required to respond.

How to respond to a request from the tax office?

A response must be provided within 15 working days, or within 10 working days if the request concerns a cross-check.

If the request contains errors or is unlawful, the entrepreneur should:

• contact the tax office and state that the request is not valid;

• highlight the errors in the response letter;

• provide a written explanation of why the request is invalid.

What happens if tax office requests are ignored?

If the entrepreneur ignores the letter and does not provide a response, the tax office may issue an official report. This document serves as a basis for conducting an unscheduled documentary audit.

Additionally, fines may be imposed according to clause 121.2 of the Tax Code, ranging from 1 to 5 minimum wages. A fine can be applied for each instance of failing to provide a response.

To avoid penalties, always provide a well-reasoned response to tax office requests within the legally specified timeframe.