You received an IRS Notice of Deficiency letter…Now What?

Michelle Divan, EA
Michelle Divan, EA

Hi – Michelle Divan here.  I represent taxpayers in Denver, CO – and nationwide – who cannot pay their taxes, have back tax debt, or are dealing with an IRS Audit.  Each month I grab a topic that is germane to taxpayers that have debt or issues with the IRS.  Last month I focused on non-filing taxpayers, and you can see my historic bloc posts here.  This month I am focusing my attention and education on people who have received a letter from the IRS called a Notice of Deficiency. 

What is a Notice of Deficiency, or NOD for short?  The Notice of Deficiency is a letter that says you, the taxpayer, owes money to the IRS, and you are deficient in paying this debt, AND the balance is due in 90-days!  These are also called 90-day letters, and the deadlines are unbending!  Wow…sound scary?  It can be, and that’s why I want to help you either avoid and IRS Audit or deal with one.

Why is this a pressing issue right now? There are increasing numbers of Notice of Deficiencies being sent to taxpayers currently.  The IRS is so far behind in processing mail and responses.  While the IRS says all mail has been opened – all mail has definitely not been processed!  The IRS uses an Automated Underreporting process to send notices of under reported income, Joe Taxpayer may have responded to that notice and the response may be sitting under a pile of mail on a revenue agent’s desk.  But remember that word automated?  The IRS computer still thinks that Joe Taxpayer owes this money and sees no response…and…there’s your 90-day Notice of Deficiency letter.  There is a process involved in getting these resolved, and I can help.

Don’t try to handle these on your own!  If you or someone you know is in this predicament, let’s get it taken care of!  You can reach me at 303-250-0122 or via email at mdivan@mdtaxpros.com