IRS Notice of Deficiency: The Importance Of Responding Quickly

IRS Notice of Deficiency: The Importance Of Responding Quickly

Have you received an IRS Notice of Deficiency in your mailbox? If so, do not panic. CuraDebt Tax has the solutions that you are looking for. Let’s have a look at exactly what an IRS Notice of Deficiency is and what steps we should take next.

What Is a Notice of Deficiency?

An IRS Notice of Deficiency is not a bill, however a tax bill could follow depending on what the letter states. A Notice of Deficiency is also referred to as the “IRS 90-day letter.” The IRS gives this notice the alternate title of “Form CP3219A”.

The IRS will send this notice when there is a discrepancy within a taxpayer’s tax return. This means that what was reported does not match up perfectly with what was reported by a third party source or an employer. This could mean that the IRS has discovered that you owe income taxes. Be aware that interest and penalties may have been added on to the taxes due. Luckily the IRS is sending you this Notice of Deficiency with the opportunity to pay back what you owe before the situation becomes more serious. Ignoring this Notice of Deficiency is a mistake, as more serious consequences will arise. If you have received this notice, it is important that you act quickly at resolving your tax debt. Luckily we have a team of tax professionals who are able to find a resolution plan that works best for you, based on your financial situation.

How Do I Respond to an IRS Deficiency Notice?

Dealing with the IRS may seem like a stressful situation, but there is no need to feel intimidated. With our tax team, you will never be alone. We will guide you through the process step by step and communicate with the IRS on your behalf. With us, you will never have to deal with the IRS on your own.

If you do not respond to the letter of deficiency the IRS will automatically change the amount you owe in taxes on the official record. This is why we need to act quickly. You will have the option to agree with the IRS’s change if you believe that you made a mistake on your tax return. But if you do not agree and believe that the mistake was on the IRS side you will need to respond with an objection. If this is the case, a Form 5564 will need to be filled out and returned to the IRS. As tax experts, we will be able to explore all possible resolution options and negotiate the best resolution that is available to you.

What Does Deficiency in Income Tax Mean?

Deficiency in income tax means that a taxpayer paid less than what the IRS has determined they owe in taxes. This could occur for a number of reasons, a few being that an employer made errors while reporting or a math mistake on the taxpayers end. Regardless of the cause it is important to act quickly to resolve all tax related issues.

What If I Do Not Respond To The IRS Deficiency Letter?

The IRS does not allow for any extensions when it comes to responding to the 90-day letter. If you fail to respond by the deadline or decide not to respond at all here are some potential consequences that you are facing:

  • Federal liens
  • Federal tax levies
  • Potential criminal tax evasion charges that could result in jail time

Needless to say, all of those consequences are severe. Not responding to an IRS deficiency letter by its deadline is a huge mistake. We are here to assist you with this stressful situation.

What Is a Waiver of Deficiency?

If you agree with the additional tax amount proposed you will need to fill out an official Notice of Deficiency Waiver form. After being returned to the IRS, a bill for the amount owed will be sent to you. A Waiver of Deficiency is also called a Form 5564. Never sign Form 5564 if you are not 100% in agreement that you owe the proposed amount.

How Can We Help?

Reach out to us immediately if you’ve received a Notice of Deficiency from the IRS. Our team of tax debt relief experts will help you to understand the IRS’s assessment. In addition, we’ll work hard to help you avoid any unnecessary costs or penalties that you could be forced to pay to the IRS. We’re also here to assist with tax preparation to decrease your odds of encountering a discrepancy. Contact us toll free today for your free consultation. 1-877-999-0486.

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