Federal Tax Procedures

Question 1

Statutory Notice of Deficiency

Answer 1

90-day letter to tell taxpayer they have 90 days to petition the Tax Court

Question 2

Small Tax Case

Answer 2

If tax is $50,000 or less can request small tax case by Tax Court. If approved and presents case then it’s a final ruling and can’t be appealed.

Question 3

Corporate late filing penalties

Answer 3

-5% of unpaid tax for each month or partial month, up to 25% of unpaid tax
or
-‘failure-to-pay’ penalty if filed more than 60 days late and would be the lesser of $435 or 100% of unpaid tax