Tax practice and procedure Flashcards
1
Q
What is a 90 day letter?
A
The IRS “90-Day Letter” is an official statutory Notice of Deficiency on a taxpayer’s tax return. It gives the taxpayer 90 days to agree to IRS adjustments or file a petition in the tax court.
2
Q
What is a 30 day letter?
A
It asks the tax payer to agree to IRS findings. It opens the window to the IRS appeals process. It can be accepted, appealed or ignored.
3
Q
What is the statute of limitations for an IRS audit?
A
The IRS can assess additional tax up to three years from the later of:
The date the return was filed or
The due date for the return,
4
Q
When can the statute of limitations for an IRS audit be extended to 6 years?
A
-if gross income omissions exceed 25% of the gross income stated on the return.
