Receiving any type of notice from the IRS is enough to cause distress for many people. Even if you know that you reported your income accurately and paid your taxes on time, a Notice of Deficiency can invoke panic. A Richmond IRS notice of deficiency lawyer can help you navigate your next steps and deal with those allegations. Reach out to a tax crime attorney at our firm today.
An IRS notice of deficiency provides a warning that the IRS feels an individual owes more in taxes than they reported on their tax return. Often, it is triggered because a third party—an employer, a bank, or another financial institution—reported income that was not noted on the individual’s tax return.
A Notice of Deficiency is issued before an official assessment of additional tax liability. It is not a bill. Rather, it explains the IRS’s proposed changes to an individual’s tax return and how they arrived at that amount.
An individual who receives a Notice of Deficiency from the IRS has 90 days to respond to the allegations. That can mean several things.
An individual who feels that they have underreported their income, based on the information provided to the IRS, can agree to the changes the IRS has suggested. This may mean signing a waiver and making arrangements to pay the additional amount. However, individuals who want to agree to those changes may want to talk to an attorney first to ensure that they understand the proposed changes and that they are in line with the law.
An individual who wants to challenge the changes proposed by the IRS may file a petition with the Tax Court to fight those changes and show evidence that they accurately provided information about their income. Challenging the proposed changes can prove difficult; working with an IRS notice of deficiency attorney in Richmond can provide individuals with the support they need to navigate the Tax Court.
Ignoring a Notice of Deficiency can trigger increased problems. Failure to respond to the notice generally means that the IRS will assess the amount laid out in it. Furthermore, the IRS may add penalties and interest to that amount, significantly increasing the costs faced by the individual. In addition, the IRS may take steps to collect those funds, including tax liens or levies against the individual. Responding within the 90-day period can prove crucial to avoiding those expensive penalties.
An individual who can show that they were outside the United States for that period may have up to 150 days to respond, rather than 90. However, the individual may need to show evidence of their travel. A lawyer in Richmond could help a person respond to an IRS notice of deficiency within the proper timeframe.
If you have received a Notice of Deficiency from the IRS, you need a legal team on your side that can help you navigate those challenges and protect your finances. At Whiteford Tax Defense, you will find a team that will work with you to determine your rights and the ideal next steps. Contact us today to discuss the validity of the Notice of Deficiency and your response, including how to effectively contest an inaccurate amount. Our Richmond IRS notice of deficiency lawyer is ready to help.