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Knowing one’s options after receiving a notice of deficiency

On Behalf of | Dec 4, 2022 | Firm News

Facing overwhelming financial obligations can be stressful under any scenario and issues with debt can trigger various hardships in life. Individuals in Georgia who feel that they are current on tax obligations only to receive a notice of deficiency claiming they owe money to the IRS might be uncertain of how best to approach the matter. Receiving a notice of deficiency can be a harrowing experience and knowing one’s options when facing similar matters may be integral to understanding the best course of action to take. 

Addressing the situation 

A notice of deficiency is a document that the IRS may send to inform a person of outstanding tax debt balances. In some cases, this notice may indicate that one’s tax return information does not match IRS records and that amounts paid in taxes are insufficient to cover obligations. Those who receive a notice of deficiency may have the option to pay outstanding tax debts, but there may be some scenarios in which this might not be the best path. 

When facing similar issues, one may also have the right to dispute the matter with the IRS, or even to file a petition with the court. This may be a viable path in scenarios in which a person feels that IRS records are incorrect. Providing information to the IRS may help resolve the matter in some situations, but this might not always prove fruitful in every case. One may also have up to 90 days to dispute the matter in court and challenge the notice but preparing for this process can be intimidating. 

Seeking guidance 

Individuals in Georgia who receive a notice of deficiency and remain uncertain of the next steps to take could consider retaining the services of an attorney for guidance. An attorney can help evaluate the situation a client is facing and provide much needed guidance in preparing to make informed choices about the available options. Such advice may be essential to helping a person prepare a strategy to protect his or her interests via the proper paths and take steps to mitigate the risks of a similar outcome in the future.