Tax Lawyer Northern California Guide to Reviewing Tax Notices

A filing error might involve omitted income, an incorrect deduction, or a mismatch with third-party reports. The response depends on whether the agency requests an explanation, proposes an adjustment, or has assessed tax.

An audit examines reported amounts and supporting records. Collection proceedings generally concern assessed liabilities, although separate review rights might remain available.

The tax period identifies the return or transaction under review. The notice date, mailing information, and governing statute determine how a response deadline is calculated.

Retain the complete notice, attachments, and mailing envelope. A later reminder does not necessarily restart an earlier statutory deadline.

The Internal Revenue Service administers federal income and employment taxes. Its notices concern return processing, examinations, deficiencies, assessed balances, and collection.

An examination report differs from a statutory Notice of Deficiency. Under 26 U.S.C. § 6213, qualifying deficiency notices provide a route to the United States Tax Court before payment of the disputed deficiency.

Collection actions involve separate requirements. An IRS levy raises different procedural questions from an income-tax examination.

Related tax controversy procedures depend on the agency action and available review rights.

The California Franchise Tax Board (FTB) administers personal income tax and corporation franchise and income taxes. The California Department of Tax and Fee Administration (CDTFA) administers sales and use taxes and various special taxes and fees.

State employment-tax matters may involve the Employment Development Department (EDD). Businesses receiving notices from multiple agencies need to distinguish their obligations and response procedures.

Individuals should compare the notice with filed returns, income statements, payment records, and documents supporting disputed deductions.

Businesses should examine relevant ledgers, invoices, bank statements, and payroll filings. Sales-tax disputes often require transaction records and exemption certificates.

An amended return or prior payment might explain an apparent discrepancy. Confirm whether the agency processed that submission.

Prior examination reports, written responses, and proof of filing establish what the taxpayer previously submitted.

Identify the transactions or calculations the agency disputes. Missing documents require a different response from disagreements over statutory interpretation.

Under 26 U.S.C. § 6213(a), taxpayers generally have 90 days after the IRS mails a statutory Notice of Deficiency to petition the United States Tax Court. The period is 150 days if the notice is addressed to a person outside the United States.

When the last day falls on a Saturday, Sunday, or legal holiday in the District of Columbia, the statute provides an adjustment. A petition filed by the last date specified by the IRS in the notice is treated as timely under § 6213(a).

These rules do not apply to ordinary IRS correspondence.

For a pre-levy Collection Due Process notice under 26 U.S.C. § 6330, the taxpayer generally has a 30-day period to request a hearing before the proposed levy. The notice should be reviewed for its specific deadline and the tax periods covered.

Federal tax lien notices under § 6320 follow a different calculation. The 30-day hearing-request period begins the day after the statutory five-business-day notification period following the lien filing.

These procedures differ from deficiency petitions and other tax dispute procedures.

Under California Revenue and Taxation Code § 19041, taxpayers generally have 60 days from the date of a Notice of Proposed Assessment to file a protest. The taxpayer should also verify the specific “Protest By” date stated on the notice.

After the FTB issues a Notice of Action on a proposed-assessment protest, the taxpayer generally has 30 days from the date of that notice to appeal to the California Office of Tax Appeals (OTA).

These deadlines concern separate procedural stages. An informal reconsideration request does not necessarily extend either period.

Under Revenue and Taxation Code § 6561, an ordinary sales-and-use-tax redetermination petition generally must be filed within 30 days after service of the Notice of Determination.

CDTFA Rule 35007 generally measures the petition period from the notice's mailing date. Determinations under Revenue and Taxation Code § 30173 have a 10-day period, while those under § 41033 have a 60-day period.

Other statutory exceptions require separate review.

The United States Tax Court hears qualifying federal tax disputes under federal jurisdictional rules. The taxpayer's county does not independently determine access to deficiency proceedings.

Federal refund litigation follows a different route. Depending on the claim, jurisdiction lies in a federal district court or the United States Court of Federal Claims.

Under 26 U.S.C. § 7422, refund litigation generally requires a duly filed administrative refund claim. Refund suits also depend on applicable payment requirements and filing deadlines.

The California OTA reviews specified state tax disputes. Its procedures differ from federal Tax Court litigation and municipal administrative appeals.

Local business taxes depend on the governing ordinance. A municipal assessment requires examination of the issuing authority, tax classification, and local appeal deadline.

Businesses operating across jurisdictions should distinguish municipal obligations from statewide state and local tax requirements.