HOW TO WRITE PERSUASIVE LETTERS THAT RESULT IN TAX REFUNDS

It’s inevitable that a state, local, or even the federal government will have money that lawfully belongs to your company.  There is really no incentive for them to return it, so it’s up to you to communicate persuasively to get what you want.

Although most business is conducted by email and phone, sometimes the best approach is a letter. This is usually the case with tax disputes. Keeping everything in writing is good proof, keeps a record of the timeline, and is a great way to make a strong case for your position.

Below are the five parts required of a persuasive letter:

1. The introduction; which is a restatement of their position;
2. Your explanation of the correct result and how you arrived at that result;
3. The ‘don’t ask, but tell’ portion, where you state exactly what you want;
4. The offer of help; you are available for questions and are happy to provide additional information;
5. The gratitude; thanking them for taking the time to read your letter.

Before I start to write my letter, I spend a lot of time reviewing the correspondence received from the other party. It’s critical to understand their position.  There can be many reasons a government thinks your company owes money, some of them totally innocuous.

This researching process can take hours or sometimes days. If I’m spinning my wheels I put it aside and do something else for a while. With today’s complicated returns, it is sometimes very difficult to find the problem. Once you find it, and you are convinced it is a mistake on their part, continue on to the next step.

The research you do to find the problem supports the most critical part of the letter; the explanation of the correct result (item two). It must be clear, concise, and easy to understand. If it draws on for too long, the person reading the letter will truly have no idea what’s going on and will likely reject your request out of hand.

After the explanation, you move on to the ‘don’t ask, but tell’ portion. Write exactly what you want. Don’t suggest it, don’t imply it, and above all, don’t provide options. Just state what you want. Using the phrase ‘respectfully request’ softens the blow a little bit. This is where you don’t mince words.

Finally, you indicate your willingness to do whatever it takes to resolve the matter. You are happy to answer questions, provide more information, or fill out any additional forms required.  Include your phone number in the body of the letter.

End with a polite thank you. The person you are corresponding with is the link between you and the desired outcome. It is important to establish a cordial relationship in your letter, as you may end up speaking with them on the phone later on.

One final tip – keep the letter brief. If it is longer than one page, it is too long. If you are struggling with making it shorter, consider including additional attachments as further explanation and proof. It may be easier to understand when it is presented in that manner, and referring to the attachments in your letter will only take a sentence or two.

With practice, you will become an expert at collecting money in seemingly impossible situations.  This is a respected skill that will always be in demand.