The envelope arrives. It says "Federal Board of Revenue" in the corner. Your stomach drops. Most business owners do one of three things: ignore it and hope it goes away, panic and pay whatever is asked, or reply immediately with a hastily written defense. All three are wrong. Here is what you should actually do.
The facts, in short
- Do not ignore it. Silence is treated as acceptance.
- Do not panic. Most notices are resolvable with the right documents.
- Do not reply immediately. A careless reply can admit liability you do not owe.
- Note the deadline. Missing it can trigger ex parte proceedings.
- Get help before responding. A tax professional should review your reply.
Hour 1: Read the notice carefully
Before you do anything else, read the entire notice. Identify:
- Which tax year it relates to
- Which tax — income tax, sales tax, or federal excise duty
- What FBR is asking for — information, payment, or an appearance
- What the response deadline is
- Which office issued it and who the contact officer is
Write these details down. You will need them when you speak to your tax advisor.
Hours 2-6: Gather your documents
Collect everything that relates to the tax year and issue in question:
- The filed tax return for that year
- Sales and purchase invoices supporting the figures
- Bank statements for the relevant period
- Payment challans and proof of tax paid
- Any previous FBR correspondence on the same matter
- Contracts or agreements if the notice relates to a specific transaction
Organize them chronologically. If documents are missing, note which ones — your advisor needs to know what you do not have, not just what you do.
Hours 6-24: Get professional help, then respond
Do not draft the reply yourself. FBR notices use specific legal language, and an off-the-cuff response can accidentally admit liability, waive rights, or create new problems. A tax professional will:
- Interpret what FBR is actually asking
- Identify whether the notice is valid or procedurally defective
- Prepare a response that addresses the issue without over-disclosing
- Meet the deadline with a properly formatted reply
Common types of FBR notices
- Notice under Section 177. Audit selection — FBR wants to examine your books and records.
- Notice under Section 178. Inquiry into income — FBR questions what you declared.
- Show-cause notice. FBR proposes a penalty or additional tax and wants your explanation first.
- Demand notice. FBR says you owe tax and wants payment.
- Stockist or withholding inquiry. FBR is checking whether you deducted or deposited withholding tax correctly.
What not to do
- Do not ignore it. The problem does not go away; it gets worse with penalties and interest.
- Do not pay without checking. The amount demanded may be wrong. Paying it can be treated as accepting the liability.
- Do not reply emotionally. Angry, defensive, or casual responses become part of the record.
- Do not delete records. Destroying documents after a notice arrives can be treated as obstruction.
- Do not delay. Every day you wait is a day closer to the deadline — and further from a good outcome.
Don't face it alone. Get expert help today.
We will review your notice, prepare your response, and handle the FBR correspondence — so you stay compliant without the headache.
Frequently asked questions
What should I do the moment I receive an FBR notice?
Do not panic. Do not ignore it. Do not reply without reading carefully. Note the deadline, identify the issue, gather documents, and get professional help before responding.
Do FBR notices always have a deadline?
Most do — often 15 or 30 days. Missing it can trigger ex parte proceedings, penalties, or default judgments.
Can I reply to an FBR notice myself?
You can, but it is risky. A careless reply can admit liability you do not actually owe. Have a tax professional review your response first.
What happens if I ignore an FBR notice?
FBR can proceed ex parte — decide against you without hearing you. That can mean penalties, added tax, and recovery proceedings.