General information only. Rules and rates can change, and the right treatment depends on your facts. Check current official guidance and obtain advice before acting.
Getting a letter from Revenue with anything other than a routine tax credit update tends to provoke one of two responses: people either panic immediately, or they put it on the pile and try not to think about it. Both are the wrong response.
Not every Revenue letter signals serious trouble. But every Revenue letter deserves a prompt, careful reading and - in most cases - a professionally drafted response. The category of contact matters, the deadline matters, and the content of your response matters. This article helps you understand what you have received and what to do about it.
Categories of Revenue Contact
Revenue communicates with taxpayers through several distinct types of contact, each with different implications. Understanding the difference between a Revenue audit, enquiry, and investigation is essential before you respond.
Routine Letters and Reminders
The most common Revenue correspondence is entirely routine - a reminder that your tax return is due, a confirmation that a return has been received, an updated tax credit certificate, or a PAYE notification to an employer. These require no substantive response beyond any action they specify (filing a return, updating employee details).
The Compliance Check or Profile Interview Letter
This is not a full audit. It is a targeted, lower-level compliance intervention where Revenue has a specific question or a specific set of figures it wants explained. The scope is narrower than a formal audit, and the process is less involved.
However, the response must be accurate, complete, and prompt. A poorly handled compliance check can escalate to a full audit. A well-handled one can resolve the matter entirely without further investigation.
The Audit Notification Letter
An audit notification letter is formal and specific. It will identify the tax head(s) being audited (income tax, corporation tax, VAT, PAYE, or some combination), the period under review, and the names of the Revenue officer(s) conducting the audit. It will specify a date by which you must advise Revenue of your intention to cooperate, and it will offer you the opportunity to make a voluntary disclosure before the audit examination begins.
This is the most serious category of Revenue letter, and it requires immediate action - specifically, contacting your accountant the same day. Read our full guide on what happens during a Revenue audit for the complete process.
The Tax Defaulters Publication Notice
Occasionally Revenue writes to inform a taxpayer that their case is being considered for publication in the tax defaulters list. This arises after a settlement has been reached that exceeds the publication threshold. At this stage the liability has already been quantified - the letter is procedural notification of publication.
The Opinion or Ruling Request Response
If you or your advisor has requested a Revenue opinion or ruling on a specific tax matter, Revenue responds in writing. These letters are generally straightforward to interpret in context.
Reading the Letter: Five Things to Identify
When a Revenue letter arrives, identify these five things before doing anything else:
1. Who sent it. The letter will come from a specific Revenue district or unit - your local Revenue district, the Revenue Audit Unit, the Large Cases Division, the Investigations and Prosecutions Division. The sending unit gives you a signal about the seriousness of the contact.
2. What it is asking for. Is Revenue requesting documents? Asking for an explanation of a specific figure? Notifying you of an audit? The specific ask determines the response required.
3. The deadline. Revenue letters always specify a response or action deadline. Note it immediately and work backwards from it.
4. Whether it offers a voluntary disclosure window. Audit notification letters explicitly offer a window within which you can make a voluntary disclosure. This is important - it affects your penalty exposure significantly.
5. Whether it references a specific return or figure. If Revenue mentions a specific year, a specific return, or a specific transaction, that tells you where to focus your records review.
What You Should NOT Do
Do not ignore it. Revenue does not send letters for no reason. Ignoring a compliance check letter results in Revenue escalating the matter, potentially to a full audit or, in extreme cases, to a statutory notice compelling production of records.
Do not respond immediately without advice. If the letter is anything beyond routine, get professional advice before responding. A response that inadvertently admits something, mischaracterises a position, or provides incomplete information can make your situation worse.
Do not call Revenue unprepared. If a letter gives a contact number and you are tempted to call Revenue to ask what it is about, do not do so without knowing exactly what you intend to say. Any information you provide in that call becomes part of Revenue’s file on you.
Do not destroy or withhold records. If Revenue is examining your tax affairs, all relevant records must be retained and made available. Destroying or withholding records is a separate offence with its own penalties.
What You Should Do
1. Call your accountant. The same day. If you do not have an accountant, this is the day to engage one. A professional who reviews Revenue’s letter and advises you on the correct response will almost always produce a better outcome than self-representation.
2. Pull together your records. While waiting for your accountant appointment, start gathering the documents relevant to the period and tax head mentioned. Bank statements, returns filed, invoices, payroll records - whatever is relevant. Having them organised when you sit down with your advisor speeds up the process.
3. Don’t discuss the matter with anyone other than your advisor. Revenue compliance matters are confidential. Discussing them with other business owners, family members (unless also directors), or employees creates unnecessary complication.
4. Note any deadlines prominently. Miss a Revenue deadline and you create an additional compliance issue on top of whatever prompted the original letter.
A Note on Cross-Border Cases
Revenue compliance checks and audits become more complex when the taxpayer’s affairs involve Northern Ireland or the UK - dual-company structures, cross-border employment, income from UK sources, or transactions between Irish and UK entities. In these cases, the relevant tax obligations in both jurisdictions may need to be assessed, and correspondence with both Revenue (Ireland) and HMRC (UK) may arise simultaneously.
The Takeaway
A Revenue letter is not the end of the world. Most Revenue compliance interventions that are properly handled by an experienced advisor resolve without catastrophic consequences. The key variables are how quickly you act, how thoroughly your records are maintained, and whether you have professional representation.
If you have received a letter from Revenue and are not sure what it means or what to do, call us. That initial conversation is free.