Don’t Panic, But the IRS Just Sent You a 30-Day Deadline

If you or your company receives a 30-day letter from the Internal Revenue Service, it is highly recommended that you do not take it lightly. Take a breath – but do not take your time. This notice marks the official end of you or your company’s audit and the beginning of a very short window to act. In fact, the Internal Revenue Service outlines proposed changes to your tax return, concluding that you owe more than what was originally reported, in this letter. You or your company now have 30-days to respond – or risk losing your strongest opportunity to push back.

So, what exactly is on the line?

The 30-day letter gives you or your company the right to file a formal protest and have your case reviewed by the Internal Revenue Service’s Independent Office of Appeals. This is a critical chance to resolve your tax matter without going to court. Additionally, this is the time that you seek the trusted legal guidance of your local, licensed tax attorney, to help with understanding the proposed adjustments and outlining the procedures for submitting a protest. Appeals officers are separate from auditors, which often means a fresh, more flexible perspective on your case – if you respond in time.

If you or your company choose to ignore this 30-day letter, the Internal Revenue Service may issue a Notice of Deficiency, also known as a “90-day letter.” If this occurs, things could become more serious and the Internal Revenue Service can legally assess and collect the additional tax, penalties, and interest, and you or your company’s only option is to file a petition in U.S. Tax Court to dispute the assessment.

Here is the kicker: once you are in U.S. Tax Court, you are largely stuck with the facts and documents developed during the audit. The window to introduce new arguments or evidence narrows significantly. That is why the first 30-days are so important, seeking guidance from a trusted and licensed local tax attorney, will be your best opportunity to protect your position before it is finalized.

The bottom line?

If you or your company received a 30-day letter, time is not on your side. Acting quickly and strategically can make the difference between resolution and escalation. A thoughtful, well-prepared response could save you or your company a great deal of time, stress, and money. This well-prepared response should be carefully crafted, grounded in legal reasoning and supported by documentation. This is where having an experienced tax attorney, in you or your company’s corner, becomes your greatest asset. A tax attorney won’t just argue numbers – they understand the legal framework behind IRS procedures, know how to interpret technical findings, and can spot weaknesses in the IRS’s position that you could miss. They help ensure you are protecting you or your company’s rights at every stage.

Consult with Wilson Tax Law Group, APLC today, to better understand you or your company’s options, build your protest, and put you or your company in the strongest possible position moving forward.

If you have any questions regarding your individual or businesses’ state and/or federal tax return(s)/tax liabilities or received a notice from the IRS, FTB, EDD, CDTFA or any other regulatory agency, please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.