IRS Notice of Deficiency Help
  • November 27, 2019
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There’s nothing worse than opening your mail, only to encounter bad news. Even more so when that worrying news comes from the IRS. Receiving a Notice of Deficiency from the IRS is enough to get anyone’s stress levels through the roof! This is true, even when you don’t know what a “Notice of Deficiency” actually means. If you’ve recently received a Notice of Deficiency, finding out more about your IRS tax problems is a must to finding a solution.

What is a Notice Of Deficiency?

Basically, a notice of deficiency is the way the IRS gives you a heads up about a discrepancy in your tax return. This occurs when the information provided through your IRS tax return doesn’t correspond with information sent by a third party such as employers and financial institutions.

But, what happens once the IRS becomes aware of this information mismatch? Any apparent difference between your reported tax returns and tax data reported by external sources trigger immediate IRS action.

Related Blog: Tax Attorney or Enrolled Agent: Who to Choose for IRS Tax Problems Help?

Before any investigation takes place, the IRS will charge you for the tax amount difference, in the form of a proposal. At this point you can proceed in a variety of ways, depending on your stance on the issue.

The Notification Of Deficiency serves a single purpose, informing you about the IRS tax problem so that you can solve it promptly.

IRS Problem Resolutions For A Notice Of Deficiency

Once you receive a Notice Of Deficiency, the first thing you should do is to evaluate the facts. Is a tax return discrepancy really there, according to your understanding? Do you consider that the IRS is making a mistake with this notification? Depending on your answer, what path to take to resolve your IRS tax problems.

What To Do If The Notice Of Deficiency Is Correct?

If you’ve figured out that your tax returns were indeed filed incorrectly, finding a resolution for your tax problem will be straightforward. Simply sign the IRS’s Notice of Deficiency Waiver, officially called form 5564 and send it over. You’ll also have to pay your overdue taxes, along with some penalties and added interest for the delay.

Keep in mind that if upon your evaluation of your tax information you discover even more unreported information, you’ll have to correct your tax return.

In the event that you over-reported instead of under-reported in your tax returns and owe no tax debt to the IRS, you can forget all about IRS tax problems. Just sign form 5564 and you’re good to go!

What To Do If The Notice Of Deficiency Is Incorrect?

Simply claiming there’s been a misunderstanding won’t cut it with the IRS. If you want to solve your IRS tax problems you’ll have to prove it.

The first thing you should do is communicate with the IRS. You can do this quickly over the phone, which is a great way to answer your questions and present your case. The more formal approach though is mailing form 5564 along with all the evidence you can gather to support your claim.

Related Blog: IRS Tax Relief: Six New Year’s Resolutions to Help You Avoid IRS Trouble

Another way to help solve this IRS tax problem is reaching out to the third party that supplied the information. Having them correct their information is a great way to dispute and resolve your case.

Finally, you can file a petition with the U.S. tax court. Just remember to comply with the deadline, as there are no extensions.

Need help with IRS tax problems?

Nick Nemeth’s Law offices help you with any kind of IRS tax problem, including dealing with a notice of deficiency. We recommend not speaking to the IRS before learning more about your situation. If you wish to get professional help for your tax problems call us today at (972) 426-2553 to schedule your free consultation.

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What Our Clients Have to Say

Susan WilsonSusan Wilson
03:27 25 Jan 23
I have been very pleased with the solid counsel and guidance that Nick Nemeth has provided me regarding my tax issue. I found him to be honest and straightforward which I appreciated. I was impressed with his relevant experience and knowledge . He has definitely brought me peace of mind during a difficult and stressful time.
Sarah HowardSarah Howard
03:44 14 Nov 22
I would like to thank Mr. Nick and his staff for the superb help that I received from them. My IRS problem was resolved quickly and efficiently. It took 2 visits to convince me that I was over my head. I thought that I could call the IRS, appeal my tax notices and settle on a payment plan on my own. After many phone calls to the IRS, waiting sometimes more than 4 hours with no resolution to speak of, it proved to be extremely difficult and stressful. Revisiting Mr. Nick was a huge wake up call. My account was reviewed, and a payment plan was established with the IRS within a week. I will be forever grateful to the staff who worked on my case and especially to Lorna who listened to me vent while going through this painful process.
00:33 07 Aug 22
I cannot say enough good things about Nick and his team. When I first met with Nick he was up front, honest, friendly and efficient. When I worked with one of his attorneys, Eric B, I was just as pleased. All of the staff there are nice and very helpful. I wish I hadn't waited so long to get help with my issue. Over 6yrs I tried getting through and getting anywhere with the IRS and hardly made any progress. I know this may not be the case for all, and even I thought it would take longer than it did, but 3mos and they had my situation straightened out. I still can't believe it. Thank you thank you THANK YOU for all that you did for me. This is a huge burden gone out of my life now thanks to you. If anyone needs help out there, I know you may not want to shell out more money to get their help but it may just save you in the long run.
Spoilly GirlSpoilly Girl
23:49 03 Aug 22
The Nemeth Law team is exceptional. They treat their clients like a family member who is in crisis. They want you to get the best possible outcome. I really appreciate everything that they did for me. Jake and Ashley had the greatest role in my case and it all turned out for the best for me. Thank you Nick and team for easing my fears and getting me through the long process. I'm truly grateful.
Eddie WaltEddie Walt
19:44 12 Jul 22
During a time in which competent, professional service at a fair price seems to have disappeared, Mr. Nemeth and his team are a refreshing breath of fresh air.From my first phone call to the final settlement of our case with a non-responsive IRS, they under-promised, over-delivered and were in constant courteous contact to make sure we knew exactly what was happening and where we stood.I hope to never need their services again, but, should I receive another friendly letter from the IRS...I know who to call!
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