You're in the green, you paid your taxes! So why did the IRS send you a "Notice of Deficiency
"? This notice means the IRS believes you should pay even more
on your taxes. If you know
you don't owe, get the facts and learn your options for contesting this notice!The Deadline:
Time is critical. If you don't respond with the attached response sheet that you do not agree
with the changes they have made by the deadline on your letter, the amount the IRS claims you owe will be set in stone. From there, the IRS may try to seize your funds by force! You can call the IRS, but they're not going to extend your deadline. So what should you do next?Know the Loopholes:
The IRS makes mistakes. Sure, those mistakes are rare in the grand scale of things but they do happen! Sometimes your "Notice of Deficiency" is sent to the wrong address. If this is proven, Tax Court will dismiss the case. But if they feel you owe, they will issue another "Notice of Deficiency", so be prepared!Take it to Tax Court
: You can take them to court if you know you don't owe. The IRS Notice of Deficiency
gives you instructions for filing a petition with the tax court (this is Form 12203 "request for Appeals Review"). The court may schedule a case for a trial. Use the time before the court date to round up documents which prove you do not owe the IRS.
But lets face the facts, it's going to be next to impossible to win your case against the IRS. You'll need substantial proof. Don't even think of taking the IRS on unless you truly do not owe and you have truly done your homework. You may want to talk to a reputable tax debt professional
before deciding you have a valid case to make.