What is Statutory notice of deficiency?
In short
A statutory notice of deficiency (the 90-day letter) is the Internal Revenue Service's formal notice that it intends to assess additional tax. The taxpayer has 90 days (150 if the notice is addressed outside the United States) to petition the Tax Court.
Key takeaways
- Petitioning the Tax Court doesn't require paying the tax first.
- If no petition is filed in time, the tax is assessed and collection can begin.
- It usually follows a 30-day letter that offers an appeal within the Internal Revenue Service.
Where it's tested
REG: Internal Revenue Service (IRS) Procedures & Appeals — study notes, a five-minute revision sheet and practice questions.
Practise: 3 questions
Question 1 of 3 · 0 answered
After receiving a statutory notice of deficiency (90-day letter), the taxpayer has how long to petition the Tax Court?