Notice of Deficiency

Your Ticket to Tax Court 

Notice of Deficiency

A Notice of Deficiency also called a “90 Day Letter” informs a taxpayer of a proposed tax assessment and right to petition tax court. The notice will include a summary of proposed change(s) to tax return and deadline to petition tax court.  If the taxpayer does not agree with the proposed changes it may be in their best interest to petition tax court.

The benefits of filing a tax court petition:

  • Stops the proposed tax assessment from going into collections.

  • Hazards of Litigation: the IRS has much more discretion to settle docketed tax court cases to prevent the hazards of litigation.  This discretion usually results in a favorable settlement for taxpayers.

Review the Notice of Deficiency

If after you review the Notice of Deficiency, and if you still disagree with the proposed changes, we are happy to provide you a free consultation.  You may contact us at (212) 520-2906.  Additionally, you may email us a copy the Notice of Deficiency to review.

Resolving Notice of Deficiency Matters

If appropriate [and retained] we may prepare and file a tax court petition on your behalf.  After a tax court petition is filed the IRS will “answer” the petition. Additionally, the IRS Office of Chief Counsel will refer the case to IRS Office of Appeals for possible settlement. The tax matter is now a “docketed” appeals case.  At Appeals is where the substantial majority of tax court cases are resolved without going to court.  If the matter is unable to be resolved at IRS Appeals the case will proceed to tax court.