How to write an explanation in the tax

All taxpayers are obliged to provide reports to the tax service in the prescribed manner and within specific time. In some cases, the tax service has the right to demand from the taxpayer an explanatory note, which is a description of causal relationships.

Incompretation of tax reporting, errors in the report, the inconsistency of the data in the documents provided, the provision of unprofitable reporting for several tax periods in a row and others - the reasons for the accrual of the fine on the taxpayer. In case of identifying such problems, the tax service requests an explanatory note from the taxpayer. If the causes of violations or errors will be respectful, it is possible to reduce the fine, but not lower than the minimum level.

When writing an explanatory note, it is advisable to adhere to the standard location of the material: cap, document name, main part, date, signature. The use of official-business style, which is inherent in conciseness, dryness, the lack of emotional color in the presentation of the material is welcome. Do not forget about truthfulness and arguments.

In the main part of the document, the inspectors of the tax duty or inconsistency identified by inspectors are described. Then explains the reasons for non-compliance with the requirements of the tax service or errors in the calculations. If necessary, you can describe the measures that will be undertaken in the future to avoid violations.

Often, the tax inspector requires to provide an explanation if the tax reporting company has a loss for several reporting periods. As the reasons that led to such a situation, the following may be respectful:

• increased costs of developing a company to improve its competitiveness;
• reconstruction of fixed assets, which is the cause of increasing costs and reducing sales;
• lower prices for goods or services to improve competitiveness, which in turn reduces income;
• loss of a strategically important counterparty.

Some violations and their reasons:

• the reason for not payroll may be the fact that the organization undergoes the formation stage, as such activities are not carried out or all employees were sent on vacation without detention;
• errors in the report may occur for technical reasons when automatically filling out some data;
• violation of the deadlines for reporting - with the failure of office equipment and, as a result, temporary loss of accounting data.

To write an explanatory note is to approach quite seriously, because it is in this way it is possible to reduce the amount of penalties and avoid further proceedings.