As the 2008 tax seasons comes and goes I thought it would be prudent to provide a link to the IRS website that describes various correspondence from the IRS that some clients have received in the past or may receive in the future. The IRS website provides a page titled Letters and Notices Offering an Appeal, which contains short descriptions of various IRS examination or collections letters. The five letters/notices that I typically see from new clients are the following:
- Letter 525 – General 30 Day Letter
- Letter 531 – Notice of Deficiency
- Letter 11 – Final Notice of Intent to Levy and Notice of Your Right to a Hearing
- Letter 1058 – Final Notice Reply Within 30 Days
- Letter 3172 – Notice of Federal Tax Lien Filing and Your Rights to a Hearing under IRC 6320
One of, if not the most important aspect of these letters is the deadline by which the recipient has to respond. In most cases the recipient has to respond within 30 days from the date of the letter. In the case of Letter 531 - Notice of Deficiency, the taxpayer has 90 days to petition the tax court. If the taxpayer does not file the petition with the tax court within 90 days, the tax court no longer has jurisdiction and cannot hear the case. This is extremely important since the tax court is the only forum (the other two options are the U.S. District Court for the taxpayer's jurisdiction or the U.S. Court of Federal Claims) that does not require the taxpayer to first pay the alleged tax liability before seeking a refund through the Federal District Court or the Court of Federal Claims.
Therefore, the main purpose of this post is very straightforward: Read the IRS letters and notices and strictly adhere to the deadlines contained therein. As always, please consult a qualified tax attorney or CPA to assist you with tax issues of this kind.
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