FTO Reminds FBR to Serve Tax Notices via Email or SMS, Not Just IRIS Portal

The Federal Tax Ombudsman (FTO) has reminded the Federal Board of Revenue (FBR) to ensure that tax notices and intimations are properly delivered to taxpayers via email or SMS. The reminder came after the FTO clarified that simply placing notices on the IRIS portal does not count as valid or legal service of notice.

According to the FTO’s order, Section 218(1)(d) of the Income Tax Ordinance, read with Rule 74 of the Income Tax Rules 2002, makes it clear that the taxpayer must be informed through proper means. Just posting the notice on the IRIS system, the FTO said, is not sufficient or lawful communication.

FTO Reminds FBR to Serve Tax Notices via Email or SMS, Not Just IRIS Portal

The Ombudsman added that FBR’s IT system should automatically send alerts through email or text messages whenever it issues a notice or update. Expecting taxpayers to manually check their IRIS profiles every day is unreasonable and goes against the principles of natural justice and fair play, the order emphasised.

The FTO stressed that the department must actively inform taxpayers of any action or requirement. This is especially important for elderly or less tech-savvy citizens who may not be familiar with the online system.

The case that led to this reminder involved a 78-year-old senior citizen who had declared income from salary, exempt share income from an Association of Persons (AOP), exempt pension, and profit on debt from bank accounts in his tax returns. Despite this, the system selected his case for a complete audit for tax years 2014 and 2015 through a computer ballot under Section 214C of the Income Tax Ordinance 2001.

The FTO noted that the taxpayer did not know about the audit proceedings because FBR uploaded the notice only on the IRIS portal and did not send it via email or SMS. This lack of communication deprived him of the opportunity to respond or comply with the notice in time.

See also: PBC Urges FBR to Fix Tax Credit Glitch in IRIS System for 2025 Returns

The Ombudsman’s ruling highlights that the FBR’s online system uploads important communications on the portal without directly notifying taxpayers. The FTO directed the FBR to improve its notification system so that all taxpayers receive timely alerts about audits, notices, or any other updates.

This development once again draws attention to the need for efficient digital communication between taxpayers and authorities. By adopting modern and user-friendly practices, the FBR can ensure transparency, fairness, and better compliance across the system.

In summary, the FTO has made it clear: tax authorities must send notices to taxpayers through direct communication channels like email or SMS instead of only uploading them online. This step is crucial to protect taxpayer rights and maintain public trust in the taxation system.