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Receiving a notice of deficiency can seem dreadful

On Behalf of | Jul 8, 2020 | IRS Issues

Most people in Atlanta and across the country dread doing their taxes. It can sometimes be complicated, and trying to remember a year’s worth of financial information and find the corresponding documentation can be challenging. When individuals do file their taxes, they may feel a sense of relief. However, if they receive a notice of deficiency, that original sense of dread may return.

A notice of deficiency is sent by the IRS to a taxpayer when the federal agency believes that there is an inconsistency between the information the agency has on file and the information the taxpayer provided on the tax return. For example, individuals who are employed by other parties have financial information sent to the IRS from their employers, such as income earned, job-related expenses and other information. If the information provided by an employer differs from what the employee files on a tax return, that issue could trigger a notice of deficiency.

The notice will provide information explaining where the IRS believes the inconsistencies exist. Of course, an employer could make a mistake with information, or the IRS could even commit an error. Because no one wants to end up on the hook for additional taxes due to the mistakes of another party, taxpayers who receive this notice may want to remember that they have 90 days to dispute the deficiency in court.

Taking any matter to court can certainly seem intimidating. Fortunately, Atlanta residents dealing with this type of ordeal do not have to feel as if they are going against the IRS on their own. Experienced tax law attorneys can help notice of deficiency recipients handle their cases if those recipients believe that an error has occurred or other extenuating circumstance exists.