What to do when you receive notice of delinquent taxes

When you receive a notice about delinquent taxes, you must first determine whether it is a notice of taxes due or a warning that additional taxes will be assessed if action is not taken.  In either case, there is an appeal period or period in which to act before further action is taken.  One should never let this period expire without contacting the IRS or filing some paperwork.

 

 

You certainly have the right to appeal a notice of additional tax due.  Generally you can appeal IRS decisions if you do so within 30 or 60 days.  Different types of adverse decisions have different appeal periods.   Another requirement of protesting IRS actions is that all required returns must be filed (not necessarily paid) prior to appealing.  Usually it is enough if one states that they disagree with the IRS’s position and wish to appeal.  It is better to also add the reasons you feel the assessment is incorrect.

The appeal process goes through administrative levels first, then one can usually file a petition with the Tax  Court or U.S. District Court if still not satisfied with the outcome.  Administrative Appeals must be exhausted and followed in a precise order and all timelines must be met before appeal can be made to the Court system.