What This Letter Means
Letter 1022 is an Inadequate Records Notice follow-up. It comes out of the IRS excise tax program. It means the IRS previously told you your recordkeeping didn't meet the requirements of the law, asked you to report back on how you would fix it, and never heard from you.
How You Got Here
An excise tax examiner usually issues Letter 979, Inadequate Record Notice. In some cases the examiner issues Letter 978, Notice of Inadequate Records, along with Form 2807, Agreement to Maintain Adequate Books of Account and Records. Either way, you had six months after being served to follow up with a statement of the corrective action you would take.
When six months pass with no response, the IRS sends Letter 1022. It gives you an additional 15 days to respond.
What to Do
- Send a written statement within 15 days describing the specific changes you've made to your books and records.
- Address the deficiencies described in the original Inadequate Records Notice, point by point.
- If you already responded, send a copy of your earlier response and any proof that you mailed it.
- Use certified mail and keep a copy of everything you send.
If You Don't Respond
The case is referred to an excise tax field group to evaluate whether you're complying with the Inadequate Records Notice. An Inadequate Records Notice can lead to a follow-up examination. Ignoring this letter makes that more likely.
Fix the Records, Not Just the Letter
A response that promises better records helps only if the records actually improve. If your bookkeeping is still a problem, fix the system before you write the statement. Whatever you describe is what the IRS will expect to see if it comes back.
If you received Letter 1022 and need help responding about your records, call us at (813) 229-7100.