Demand Letter Template – Final Notice Before IRS Reporting

A demand letter is a warning about the course of action you will take if the letter recipient does not pay. Sending a demand letter is an incredibly effective way for construction businesses to compel their customers to pay outstanding invoices.

This demand letter – a Final Notice Before IRS Reporting – effectively tells the recipient that you are preparing to report the outstanding debt as “cancelled debt.” Because the IRS treats cancelled debt as income, that can mean your client could soon be facing a huge tax bill.

This free, customizable demand letter template references the IRS regulation that applies, and the IRS form that you will file if they don’t pay the outstanding amount by your stated deadline.

Learn more about demand letters

• How to write a demand letter that gets you paid
• Write a demand letter using your state’s prompt payment law