Help in Translating Notice of Deficiency from IRS

[Unisapph]

Greetings. I received a Notice of Deficiency from the IRS which has alarmed me because the 'summary of proposed changes' reflects only the entire amount of recalculated taxes and a penalty, while the letter I received previously had a 'summary of proposed changes' showing recalculated tax along with the amount already paid, and the penalty. It's alarming because I construed it as the IRS suggesting I owe that entire sum [a large portion of it was already paid!].

Can anyone elucidate me as to formatting in a Notice of Deficiency form? Am I misconstruing the information in the 'summary of proposed changes' and thus alarmed unnecessarily? They do have all my information with regard to amount of taxes paid; it's reflected in one of the pages of the NOD. But when it comes to the IRS..... I am wary. Thanks in advance for any guidance.

 

[Taxing Matters]

I can't comment much without seeing exactly what part of the statutory noticed of deficiency (SNOD) alarms you. But understand that the SNOD is not a bill of taxes owed; it is a statement of the deficiencies (adjustments) the IRS will make to the tax assessment for that period if you don't timely contest the SNOD in Tax Court. Amounts paid against the proposed assessments wouldn't generally be shown.

 

[LdiJ]

I agree with Taxing Matters, someone really needs to look at the notice. You might run it by a local tax professional. If you run it by someone who is in an office that is open year round, they will be very familiar with those notices and can explain it to you.

 

[davew9128]

To expand on the other comments, if you don't contest this now, your avenues for contesting it later become more limited and very time consuming. Given the current IRS shutdown, it would be in your interest to consult with a tax attorney or USTCP to file a tax court petition, as it is unlikely the deadline for filing that petition would be extended during this time even where the court has been cancelling sessions.

 

[Taxing Matters]

To expand on the other comments, if you don't contest this now, your avenues for contesting it later become more limited and very time consuming. Given the current IRS shutdown, it would be in your interest to consult with a tax attorney or USTCP to file a tax court petition, as it is unlikely the deadline for filing that petition would be extended during this time even where the court has been cancelling sessions.

That assumes, of course, that the OP disagrees with the proposed changes. It may be the IRS got it right. The OP sounds like he or she is just concerned that the payments made will be accounted for. But if the OP wants to make a Tax Court challenge to the SNOD I agree that the petition must be timely filed notwithstanding the government shutdown. The timely filing of the petition is jurisdictional. If the OP files late, the court cannot hear the matter.