There is no doubt that receiving a Notice of Deficiency from the Internal Revenue Service (IRS) is a stressful experience, especially given its limited 90-day response window. IRS enforcement actions are serious matters, so speed is essential. It is vital that you seek help from a dedicated tax attorney as soon as possible.
Working with a Baltimore IRS Notice of Deficiency lawyer could be reassuring. While any tax issue must be taken seriously, experienced legal counsel could help you find a reasonable resolution.
The IRS relies on your returns and other information you provide to determine your income tax obligation each year. Every form of income is taken into account, including wages, capital gains, and gambling winnings. The IRS uses this information to determine your tax obligation.
The IRS sends a document known as a Notice of Deficiency to taxpayers who have not paid the amount they owe. The unpaid amount, known as a deficiency, could result from a variety of situations beyond simply failing to make a payment. Some notices are sent because of alleged understated income, unlawful deductions, or the improper use of tax credits.
The Notice of Deficiency is also known as a “90-day letter,” as it comes with a strict timeline for responding. You have up to 90 days to file a petition if you disagree with any part of your assessment. An attorney in Baltimore with experience in handling IRS Notices of Deficiency could advise you on how this process works.
Not everyone decides to fight or consult a Baltimore lawyer after receiving a notice from the IRS regarding a deficiency. If you do not respond within the 90-day window, the tax obligation becomes final, with no additional steps required regarding your return, except to write a check to the IRS. As the IRS has already issued a tax delinquency based on your current documentation, the only reason you might need to modify the return is if you have discovered additional income, expenses, or tax credits that were not considered previously.
Things become more complicated if you disagree with an IRS assessment of your tax obligation. With the help of a Baltimore Notice of Deficiency attorney, you could file a petition with the U.S. Tax Court and dispute the assessment. Once filed, the court will notify the IRS, which places a hold on your tax deficiency while your case is addressed, so you do not receive additional penalties or assessments during that period.
The next step is for the IRS legal counsel to file an answer to your petition. In some situations, the IRS might agree to resolve the case without the need for court proceedings, with their counsel requesting a conference with you to resolve the matter.
When an easy resolution is not possible, the case will be heard by the United States Tax Court. There is also an appeals process, which many cases eventually reach. You do not need to be alone during this process, as you have the right to an attorney at every stage.
If you have received a 90-day notice from the IRS, you have a limited time to act. The process for disputing your assessment can be complex, but Whiteford Tax Defense is ready to work with you. Call a Baltimore IRS Notice of Deficiency lawyer today to learn more about your options.