90-Day Letter

90-Day Letter

A letter that the IRS sends to a taxpayer after an audit. The letter states that the audit has found inconsistencies or other errors in the tax returns and that the taxpayer will have to pay more unless he/she can show that the audit is in error. The letter derives its name from the fact that the taxpayer has 90 days to dispute the results of the audit before reassessment occurs.
References in periodicals archive ?
A 90-day letter is a formal legal notice, sent by certified or registered mail.
If the IRS exam team is not persuaded by the explanations provided by SnowFun, then the typical IRS process would lead to a 30-day letter, allowing for the IRS appeals process, followed by a 90-day letter (a statutory notice of deficiency).
c) Original and one (1) copy of Valid Michigan Teaching Certificate and/or out-of-state Teaching Certificate OR 90-Day letter (if candidate's degree was granted by a Michigan College/University).
The situation is especially egregious with respect to the assessment of "hot interest" under section 6621(c) of ;he Code which increases the interest rate by two percentage points on large corporate underpayments where the underpayment remains outstanding more than 30 days following the issuance of either a 30-day or a 90-day letter.
After the 90-day letter is mailed, the taxpayer has 90 days to file a petition with the Tax Court.
After a certain period of time, the IRS issues a second notice, and if there is no reply, it will issue a statutory notice of deficiency or a 90-day letter.
If the taxpayer does not respond within 30 days, the IRS will then issue a 90-day letter or Statutory Notice of Deficiency.
Although the notice of "final partnership administrative adjustment" is sometimes referred to as the equivalent of a 90-day letter, neither it nor the other forms routinely used in partnership proceedings (e.
Typically, a 30-day or 90-day letter has been issued in such disputes, so the applicable date has long since been triggered.
For the nonattorney tax practitioner, being able to prepare and file a petition is a useful skill against the tolling of a 90-day letter.
Any 90-day letter rescinded by the Service under Sec.