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 ?
Since it usually takes more than 90 days to resolve notices and correspondence exams on the 1RS side, receipt of a 90-day letter creates additional paperwork and expense for the client in concluding the case.
Since it usually takes more than 90 days to resolve notices and correspondence exams on the IRS side, receipt of a 90-day letter creates additional paperwork and expense for the client in concluding the case.
If you ignore the 90-day letter or the 90 days ran out, the tax assessment becomes final and the IRS can institute liens and levies.
With the signing of the non-binding, 90-day letter of intent, Aria Health and Jefferson begin a process of due diligence that will enable each organization to learn more about the other.
Fortunately, my experience is that when committees have sent the 90-day letter, the service providers have responded almost immediately with detailed information.
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).
It is noteworthy, however, that in Offiler, the court compared a notice of determination to a 90-day letter with respect to its jurisdiction.
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.
Upon receipt of the 90-day letter, the taxpayers, through their accountant, submitted a request for audit reconsideration based on new information they had related to the audit.
A 90-day letter is a formal legal notice, sent by certified or registered mail.
After the 90-day letter is mailed, the taxpayer has 90 days to file a petition with the Tax Court.
If the taxpayer does not respond within 30 days, the IRS will then issue a 90-day letter or Statutory Notice of Deficiency.