Received an FBR Tax Notice? What to Check First and How to Respond

A notice from the Federal Board of Revenue usually arrives quietly — a message in your Iris inbox, sometimes followed by an email or SMS. Receiving one does not mean a tax demand is final or that every allegation in it is correct, but ignoring it is the fastest way to turn a routine query into a best-judgment assessment, penalties, or recovery action. This guide walks through what to check first, what the most common notices actually ask for, and how to respond within the law's deadlines.

Step 1 — Confirm the notice is genuine

Open Iris, the FBR's official taxpayer portal, and read the notice there rather than trusting a link that arrived by email or SMS. Note the title, the statutory section it cites, the tax year, your NTN, the alleged discrepancy, and the date allowed for reply. FBR also provides an official facility to verify notices and orders — use it, because fake "tax notices" circulating by WhatsApp are a known scam pattern. Preserve screenshots of the notice and your acknowledgment; they matter later if there is ever a dispute about service or timing.

Step 2 — Identify what the notice actually asks

Notices are not interchangeable. An information request, a show-cause notice, a proposal to amend an assessment, and a final assessment order are different legal instruments that call for different replies — never one generic letter. The ones you are most likely to meet: a section 114 notice asks you to file a return you missed (about 30 days); section 176 calls for records or explanations — bank statements, supplier or customer details — and is often a precursor to audit; section 177 selects you for audit, which the Commissioner must complete within about six months; section 122 proposes to amend an already-filed return or assessment, typically with a 14-to-30-day window; and sections 161 and 182 cover withholding-agent defaults and late-filing penalties.

Step 3 — Watch the clock

Response windows are short — commonly 14 to 30 days from service — and the date of service can itself affect the deadline, so record when and how the notice reached you. An Iris notice counts as served even if no paper letter ever arrived, so check the portal inbox regularly, ideally monthly. If you do nothing, the Commissioner can raise a best-judgment (ex parte) assessment under section 121 based on the department's own estimate.

Step 4 — Prepare a fact-specific reply

Reply through Iris, within the deadline, addressing only what the notice actually asks for: the specific records lawfully required, with an explanation for anything genuinely unavailable. Cross-check every figure against your filed return, wealth statement, and withholding certificates before submitting. Do not submit fabricated documents or unrelated private information — both create bigger problems than the original query.

Step 5 — If the outcome goes against you, appeal in time

If an order amends your assessment, you can appeal to the Commissioner Inland Revenue (Appeals) under section 127, filed electronically through Iris with the order appealed against, the notice of demand, and proof of payment of the appeal fee. Following the Tax Laws (Amendment) Act, 2024, income-tax appeals up to PKR 20 million go to the Commissioner (Appeals), while larger disputes go directly to the Appellate Tribunal Inland Revenue, which must decide within 90 days. Appeal deadlines are short, so treat the appeal window with the same urgency as the original notice.

How we help

Soomro Law Services reads the notice, identifies exactly what it demands, drafts and files the Iris reply with reconciled documents, and represents clients before the Commissioner (Appeals) and the Appellate Tribunal where needed. If a notice is sitting unopened in your Iris inbox, book a consultation — early, well-documented responses consistently produce better outcomes than late or incomplete ones.