IRS TAX RELIEF - IRS NOTICE OF DEFICIENCY
Updated: Apr 18, 2019
IRS NOTICE OF DEFICIENCY - IRS PENALTIES
Receiving notices from the IRS will most likely be very stressful and anxiety inducing. A Notice of Deficiency, also known as a 90-day letter, is an official written claim by a government agency—usually the Internal Revenue Service—that has found you owe income taxes, along with interest and penalties.
An IRS Notice of Deficiency informs you that an assessment is being made on the income tax you owe and designed to give a taxpayer the chance to pay what is owed to the IRS.
If you’ve recently received an IRS Notice of Deficiency, you may have some questions and concerns. Our Frequently Asked Questions can help you determine the correct course of action.
NOTICES OF DEFICIENCY
The IRS tax relief team at Flat Fee Tax Service, Inc., prides ourselves on being a full, complete tax resolution company. Our main office is located in San Diego, California with an affiliate office in Palm Beach, Florida. We are available to our clients from 8 a.m. east coast time until 5 P.M. west coast time. All of our work is done via email and/or fax which allows our clients to contact our tax team from the comfort of their homes. When you are a client of Flat Fee Tax Service, Inc. you will feel like you have an "IRS Tax Lawyer near me".
Flat Fee Tax Service, Inc. offers a wide range of IRS tax relief services (#IRSsettlements) geared towards both individuals and businesses. If you’ve recently received a Notice of Deficiency or have questions on the subject, the IRS Tax lawyers at Flat Fee Tax Service, Inc. can help! Find our answers to the most frequently asked questions about Notices of Deficiency below, and determine your next steps by calling us at (866) 747-7435.
Why Did I Receive an IRS Notice of Deficiency?
An IRS Notice of Deficiency is issued when the IRS is proposing a change to your tax return because they found that the information reported on the return does not match their records. Known as IRS Notice CP3219, this informs you that a third party filer, like your employer or another financial institution you have accounts with, has sent in information that doesn’t coincide with what you recorded.
As an example, a taxpayer may earn wages from two employers. At the end of the year the employers will issue W-2's to the taxpayer/employee and to the IRS. If the taxpayer only reports one of the W-2's on his return then this will trigger an audit of your unreported income. The IRS will then compare the tax return (#taxreturns) to their records and will find that you, the taxpayer, did not report one of the W-2's. The IRS then adds that unreported W-2 to the taxpayer’s return, which will likely assess you with a tax debt.
You also may receive a statutory Notice of Deficiency if the IRS sent you one or more pre-assessment letters requesting income, credit, or deduction verification, but never received a response from you.
If it does change the tax, whether it lowers it or increases it (thus creating a balance), the IRS will issue a Statutory Notice of Deficiency to inform the taxpayer of the proposed change to the return. The notice will explain the proposed increase or decrease in tax, how that change was calculated and how that proposed amount can be challenged or agreed to.
Is an IRS Notice of Deficiency
a Tax Bill?
No, an IRS Notice of Deficiency simply shows the information the Internal Revenue Service received and explains how it will affect your tax, and gives you contact information should you choose to file a petition with the tax court. If you’ve received an IRS Notice of Deficiency, contact Flat Fee Tax Service, Inc. today and let our IRS tax relief team help you come up with a tax resolution plan.
How Soon Will I Receive a Notice of Deficiency After Filing?
The Internal Revenue Service uses computer systems (Automated Collection Systems) to match the information you have provided on your tax return with the information reported by third parties such as banks, employers, businesses, and other accounts.
This matching can take a few months to complete, so you may receive this notice a three or four months after filing your tax return.
An official Notice of Deficiency arrives only after a first notice and Examination Report have both been sent and ignored.
What if I Disagree with the Statutory Notice of Deficiency?
If you think the IRS has received incorrect information or is mistaken, you can contact them with additional information and plead your case. You have 90 days from the date of the notice to dispute the claim by petitioning the Tax Court to reassess the liability proposed by your account’s examining agent. During this time, the IRS cannot assess or perform collections on your accounts.
You should provide the IRS with a written statement that explains the reason for your appeal. It’s always wise and best to consider using the help of an IRS Tax Lawyer or tax professional before appealing; their counsel can advise you on the validity of your claim, and save you time and money in the long run.
If you’re incorrect, an IRS tax relief expert will likely notice it before you appeal; if you’re correct, they can help you better prepare an appeal.
If your appeal proves to be unsuccessful, you’ll be required to pay the disputed amount and file a claim for a refund with the IRS. If they deny your claim, you may choose to file a lawsuit with the United States Court of Federal Claims or federal district court. You can also file a petition with the United States Tax Court to.
Could My Notice of Deficiency be Due to Identity Theft?
Identity theft is a widespread problem, and it can result in serious consequences for law-abiding taxpayers. With illegal aliens using stolen Social Security #s,it may be that someone else has used your social security number, and it’s essential you have an IRS Tax lawyer help you determine whether this is the case to avoid any further consequences.
The IRS tax relief practitioners (#IRStaxattorneys) at Flat Fee Tax Service, Inc. are skilled in discovering and rectifying identity theft. A Notice of Deficiency could be triggered by a fraudulent return that was filed by someone else using the taxpayer’s Social Security Number or it could be issued where someone is working using the taxpayer’s Social Security Number resulting in fraudulent W-2's being issued to the taxpayer’s IRS account.
If you discover your identity has been stolen, you can contact the IRS and let them know the discrepancies are due to identity theft.
KNOW THIS: THE IRS WILL NOT TAKE YOUR WORD FOR THIS PROBLEM. MANY OF OUR CLIENTS HAVE REACHED OUT TO US BECAUSE THE IRS DID NOTHING TO GET THIS RESOLVED. WHEN YOU HAVE AN EXPERIENCED IRS TAX LAWYER WORKING FOR YOU, THE IRS TREAT YOU DIFFERENTLY.
What Happens if I Ignore My Notice of Deficiency?
Should you ignore your Notice of Deficiency and continue to let your tax debt go unpaid, you can face a host of consequences:
Federal Tax Lien
A federal tax lien is a governmental notice of intent to levy your wages, personal property, or even the contents of your bank account. A federal tax lien is essentially a claim on your assets, wherein the IRS has not yet seized anything.
Federal Tax Levy
A federal tax levy occurs when the IRS actually seizes your wages, bank account(s) and/or property. The IRS can garnish your wages from an employer, deplete your bank account, and seize your assets to sell in order to satisfy your debt. A tax levy (#IRSgarnishment) will not occur until after you’ve received multiple notices and ignored IRS attempts to contact you about your tax liability.
Jail time is rare, but if the IRS launches a criminal investigation and deems your debt is due to fraud, a truant taxpayer could face incarceration.
What if I Can’t Afford My Unpaid Taxes?
If you don’t have the money to immediately pay back your unpaid tax debt to the Internal Revenue Service, it’s important to immediately contact the government agency and begin working on a tax debt payment plan. Once you’ve received this notice in the mail, it’s important to immediately contact the IRS and begin working on a resolution. The IRS Tax Lawyers at Flat Fee Tax Service, Inc. can help you determine the best options for you to resolve your unpaid tax debt.
There are multiple options through which to resolve unpaid tax liability. Our team of experienced IRS tax relief experts provides IRS notice of deficiency help from beginning to end, and will aid you in examining all of your best options:
An Installment Agreement
Taxpayers who can’t immediately pay their taxes can file a petition for an installment agreement with the Internal Revenue Service. An IRS installment agreement allows a taxpayer to satisfy their tax debt through monthly payments that can last for a period of up to 72 months. Taxpayers who owe less than $50,000 can apply for an online payment agreement. Should a taxpayer owe more than this, they’re required to file Form 9465, along with a Collection Information Statement. Before you agree to this option, call our IRS tax relief team for a free consultation.
An Offer in Compromise
If a taxpayer cannot realistically pay what is owed to the IRS, they may choose to file a petition for an Offer in Compromise (OIC). An Offer in Compromise is a settlement offer made to the government agency for less than the actual amount owed. Due to strict eligibility requirements and clauses that necessitate demonstration of hardship, it’s best to use an experienced IRS Tax Lawyer for this type of petition to ensure best chance of success.
(FLAT FEE TAX SERVICE, INC. CLIENTS HAVE HAD A 95% IRS SETTLEMENT SUCCESS RATE.)
You do have right and are protected under certain terms of tax collection processes. You have the right to challenge an IRS claim, file a petition for an appeal, and retain an IRS Tax Attorney to aid your battle with the IRS.
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