Video instructions and help with filling out and completing Are Form 843 Deficiency

Instructions and Help about Are Form 843 Deficiency

A notice of deficiency is written notice by the IRS assessing a tax liability against you it is sometimes called a statutory notice stat notice or at ninety-day letter its effect is no different from a civil lawsuit the notice of deficiency is simply written notice by the IRS of its assessment against you of a tax liability and it's sometimes called a stat notice or statutory notice since the only option in most cases an appeal to the Tax Court it's essentially the start of the civil suit the statutory notice of deficiency essentially means that the IRS has assessed a taxed against you usually it's the result of an audit or examination sometimes it's the result of a substitute tax return that the IRS has filed because you have not filed a tax return but the notice contains two key items of information the first is the date of the notice itself that date fixes the date in which you must file an appeal to the United States Tax Court second it also fixes the type of tax the date of a year involved as well as the amount and penalties this date our deadline is 90 days from the date of the notice yes this letter is sometimes called the 90-day letter if you fail to respond then that means the tax is admitted in full if you do not file an appeal to the United States Tax Court then you must pay the tax in full and file a refund suit in federal district court or Tax Court to get your money back however in order to challenge without paying the tax in full you must appeal to the United States Tax Court only an attorney who is admitted to the United States Tax Court can represent you there there are three exceptions but even then when those exceptions you should have appropriate counsel to advise you the first exception to filing an appeal to the Tax Court is in the case of a substitute turn in that case the IRS has filed a tax return for you when you have failed their file you should still file a return yourself first by filing the return you start the running of the statute of limitations for collections second you may be able to abate penalties if you file third if you file the return and later cannot pay in certain cases you may be able to file a bankruptcy and get those taxes discharged if you do not file that tax return even though the IRS has filed a substitute you can't get them charged discharged in bankruptcy in filing that tax return you should consult a tax professional he or she will be sure to make sure that all the 1099s w-2s are correctly reported in that tax return the second exception to filing an appeal is when you agree or have no basis to challenge the notice of deficiency frankly in 35 years of practice I've only encountered two cases where we declined to file an appeal almost every case there are errors factual differences or other issues that demand an appeal the third exception to filing an appeal to the United States Tax Court is a refund suit that's when you disagree with the IRS you can afford to pay in full and you want a jury trial to do that you've paid in full you file a refund claim with the IRS you wait six months until the IRS denies it whichever is sooner then you file suit normally in the federal district court where you live I thought a refund suit is expensive time-consuming and usually demands counsel can you represent yourself sure you can but you should not and not 35 years of practice I've represented several attorneys who started and tried for themselves but then came to us for help a tax appeal is a complicated difficult process in high risk again only a tax attorney can represent you before the tax code or it never fails almost every year I have one or two tax payers and I've got to give very bad news to they missed their one and only one opportunity to challenge they attack their tax liability without paying it in full they failed to file an appeal with the United States Tax Court do not ignore a notice of deficiency contact us we can help I'm admitted in the United States Tax Court contact us at WWE and a.com if not us contact some qualified tax professional who is admitted to the United States Tax Court you need to appeal this notice a notice of deficiency is your best opportunity to challenge the IRS assessment of tax without paying do not lose this valuable right by neglect contact a qualified professional for help