What is an IRS Notice Tax Deficiency?
Receiving an IRS notice of tax deficiency means the IRS believes you owe more taxes than you reported on your return. This can happen for many reasons, including unreported income, disallowed deductions, or errors.
What Is a Tax Deficiency Notice?
A tax deficiency notice is an official IRS letter informing you that the IRS has determined a difference between your reported tax and the amount they believe you owe. It usually follows an audit or review of your return.
Why Might You Get This Notice?
- Income was underreported or omitted
- Certain deductions or credits were disallowed
- Errors or mismatches were found on your return
What Does the Notice Include?
- The amount of additional tax the IRS says you owe
- Penalties and interest assessed
- Instructions on how to respond or dispute
What Should You Do If You Receive a Tax Deficiency Notice?
- Review the notice carefully
- Compare with your records
- Decide if you agree or disagree
- Respond promptly to avoid penalties
- Consider professional help, especially if you disagree or owe a large amount
Related Topics You Should Know
- If you received a CP2000 letter, it often involves a tax deficiency
- Learn how to handle audits, which often lead to deficiency notices
- Understand your rights and deadlines
KARME Tax Services Is Here to Help With Tax Deficiency Notices
Tax deficiency notices require timely and accurate responses. At KARME Tax Services, we:
- Review your IRS notices and audit results
- Help prepare disputes or payment plans
- Negotiate penalties and protect your rights
Call KARME at 972-519-0041 or schedule a consultation online today.