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  1. #1
    sfs02 is offline Junior Member
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    Please help me - what does notice of deficiency mean?

    I did not a file a schedule d in 2006 and received a notice of deficiency from the irs. Can i still submit a schedule d? Do I have to got tax court? What should i do? I owe some taxes (a few hundred $) but not the amount states on the notice of deficiency. I am prepared to pay the amount i owe based on a schedule d. Thanks so much!
  2. #2
    irsos is offline Member
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    Quote Originally Posted by sfs02 View Post
    I did not a file a schedule d in 2006 and received a notice of deficiency from the irs. Can i still submit a schedule d? Do I have to got tax court? What should i do? I owe some taxes (a few hundred $) but not the amount states on the notice of deficiency. I am prepared to pay the amount i owe based on a schedule d. Thanks so much!
    This means you have ignored a couple of previous notices. You can contact the 90 day clerk listed on the stat notice and make arrangements to get the Schedule D to him/her. However, if not resolved by the 90 days, you should file a petition in tax court. You could still request audit reconsideration after an assessment is made but this gives you a chance to head it off before then.
  3. #3
    sfs02 is offline Junior Member
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    Thanks so much - so i have 90 days to get the schedule d to the irs and sort out this matter before i have to petition and go to tax court? Does the day clerk usually allow schedule d's to be sent during this window of time (90 days)? or will they force me to petition? Thanks again I really appreciate it.
  4. #4
    LdiJ is offline Senior Member
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    Quote Originally Posted by sfs02 View Post
    Thanks so much - so i have 90 days to get the schedule d to the irs and sort out this matter before i have to petition and go to tax court? Does the day clerk usually allow schedule d's to be sent during this window of time (90 days)? or will they force me to petition? Thanks again I really appreciate it.
    Write a letter explaining the situation. Mail it, the Schedule D, and a copy of the difficiency letter back to the IRS, at the address that appears on the letter. You should also include a payment for the amount of tax that you really believe that you owe, if at all possible.

    If the IRS is stating that you owe a really large amount of additional tax, you might want to go to a local tax professional to assist you with resolving this.

    For the sake of anyone else reading this thread in the future, its critical that people respond to the FIRST letter that they receive from the IRS. Problems can often be fixed really easily with the first letter...but are often much more difficult to fix when you get beyond that point.
  5. #5
    irsos is offline Member
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    Quote Originally Posted by LdiJ View Post
    Write a letter explaining the situation. Mail it, the Schedule D, and a copy of the difficiency letter back to the IRS, at the address that appears on the letter. You should also include a payment for the amount of tax that you really believe that you owe, if at all possible.

    If the IRS is stating that you owe a really large amount of additional tax, you might want to go to a local tax professional to assist you with resolving this.

    For the sake of anyone else reading this thread in the future, its critical that people respond to the FIRST letter that they receive from the IRS. Problems can often be fixed really easily with the first letter...but are often much more difficult to fix when you get beyond that point.
    I strongly suggest you call the number on the letter and establish contact so the clerk is expecting the letter and Schedule D.
  6. #6
    sfs02 is offline Junior Member
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    Thanks so much for your help guys.
  7. #7
    LdiJ is offline Senior Member
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    Quote Originally Posted by irsos View Post
    I strongly suggest you call the number on the letter and establish contact so the clerk is expecting the letter and Schedule D.
    That certainly is not a bad idea, however I have never done that in my 20+ years of practice. The only time I have ever done that is when I needed a deadline extended.

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