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Resources:
Tax Education: Notice
of Deficiency
This is
one of the most important notices issued by the IRS. First of
all, it means that the IRS is about to assess a tax liability
against you. Second, it means you have 90 days to file a claim
in Tax Court to contest the proposed assessment. If you fail to
timely file your claim in tax court, and later want to contest
the liability in court, you must first pay the entire tax. Tax
Court is the only court where you can contest the tax liability
without first paying the entire tax. If you want to contest in
court the tax liability but you cannot afford the pay the entire
tax liability, and the 90-day period has lapsed, too bad. We
can still help you, but it will not be a dispute about your
liability in court.
It is not
unusual for problems relating to a notice of deficiency to be
resolved without fully litigating the issue in Tax Court.
But professional advice is required to determined whether a
petition in Tax Court should be filed to preserve the right to
litigate in the event IRS administrative procedures do no
provide an acceptable remedy.
On a
different note, the date of assessment can become critical
should you attempt to discharge a tax liability in a
bankruptcy proceeding. Thus, there are cases where a
petition in Tax Court should be avoided because it would
adversely affect the discharge date.
In short,
a notice of deficiency should never be ignored. It
triggers important rights that are not fully explained in the
notice. For a draconian example click
here.
Call us immediately
for help.
For more
information contact us at taxhelp@taxdefendant.com
or
Toll Free 866-216-1930
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