A Notice of Deficiency is a letter from the IRS informing you that you owe them more money. As unnerving as it may be to receive this request, responding to a Notice of Deficiency in Richmond does not need to cause panic. The important thing is to get help from an experienced tax attorney within the 90-day window.
At Whiteford Tax Defense, we will explain what the Notice of Deficiency means in your specific case and what legal options are available to you. You have the right to contest the notice and to have a tax litigation attorney represent you at all stages of the process. If you receive such a notice, contact Whiteford Tax Defense right away.
The IRS compares your tax return to all other information you and others provide to determine your actual income tax obligation every year. Your income includes your wages, stock dividends, and even gambling winnings. You must declare all income on your tax returns. Anyone who paid you also files a return accounting for that payment.
If your stated income in Richmond does not match the other filings, the IRS sends you a 90-day notice of deficiency to which you must respond. This is the amount they believe you earned and should have paid taxes on. The deficiency could also include disallowed deductions, misapplied tax credits, and other irregularities.
A Notice of Deficiency comes with a 90-day deadline for your response. You must reply to the IRS within 90 days of the date of the notice. You should contact a tax attorney immediately upon receiving a notice, since the deadline is absolute and you cannot get an extension.
You have three options for resolving a Notice of Deficiency in Richmond.
You can dispute some or all of the deficiency. This involves filing a petition with the U.S. Tax Court. The IRS will suspend enforcement until your case goes to court. This helps prevent additional penalties in your case.
You may agree with the assessment. If you accept the IRS notice, all you must do is send the deficient amount, and your case closes with no further action.
You can negotiate with the IRS about the deficiency. This may take place while your case is waiting for trial in Tax Court. You and your attorney could attempt to resolve the alleged deficiency, provide additional documentation, or negotiate a lower amount or payment plan for the delinquent taxes. This will not extend the deadline or avoid any penalties.
When attempting to resolve any tax dispute with the IRS, it is always best to have a knowledgeable tax attorney at your side. Tax law is a complex and sometimes obscure section of U.S. law, and you need assistance to avoid any pitfalls.
If you receive a 90-day notice from the IRS, you have a finite amount of time to act. Responding to a Notice of Deficiency in Richmond is best with legal assistance from a tax attorney who knows the law and requirements for negotiating with the IRS.
Contact Whiteford Tax Defense immediately upon receiving any documents from the IRS. The sooner you respond to their allegations, the faster we could file your response or petition to resolve your tax issues. Call our offices today.