Question

If a taxpayer has not received her 90 day letter, how might she toll interest on a proposed deficiency while still maintaining her right to sue in tax court? How would your answer change if she had her 90 day letter in hand?

Answer 1

If a taxpayer has not received her 90 day letter, then she can render the interest on a proposed deficiency on additional taxes by the due date and file in the tax return to the Tax authority. In such case, she is maintaining her right to sue in tax court.

If she had her 90 days letter in hand towards Statutory Notice of Deficiency, she have 90 days to file petition to the U.S. Tax Court before paying the interest taxes, in case you disagree with the Tax office. She have to act quick because there doesn’t exist any extension beyond the 90 day deadline.