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What Is This IRS Notice of Deficiency? | Tax Court Petition | 90-Day Letter | United States Tax Court | Letter 3219 | Letter 531-T | What Happens After Audit? December 16, 2012

Posted by Insight Law Firm in Income Tax, IRS, Tax.
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What is a “notice of deficiency,” and why did I just get one in the mail?

A notice of deficiency is your formal notice that the IRS has determined you owe more taxes than what you have paid for a period.  The notice will inform you of the amount of the tax deficiency and of applicable penalties and interest.  If you receive this notice in the mail, consider it your 90-day warning that you will owe the amounts stated in the letter unless you timely challenge the IRS’ determinations.

What if I disagree with the notice of deficiency?

If you disagree with the IRS’ determination you owe taxes or dispute the amount assessed, you must file a petition with the US Tax Court.  Your petition must list the reasons what parts of the notice you disagree with, and you must provide facts or reasons why you disagree.  Generally, your petition will be due within 90 calendar days of the mailing date on your notice of deficiency.  It is essential that you properly file a petition within this time frame to have your case heard.

What happens if I don’t go to Tax Court?

Filing a petition with the Tax Court is your only chance to challenge the assessment of the underlying liability before you are forced to pay the tax, penalties, and interest in your notice.  If you don’t timely file a petition, you should expect the IRS to assess and begin collecting the tax once after that petition deadline passes.

Insight Law offers free consultations to local Washington taxpayers.  If you are facing a looming petition deadline, call (206) 397-4780 or visit the “Tax Attorney” link below to visit our firm website.

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