90-Day Letter

A 90-Day Letter, also known as a 90-Day Notice, is a letter sent by the IRS to a taxpayer who has filed an incorrect tax return. The letter informs the taxpayer that they have 90 days to file an amended return or pay the taxes owed, plus interest and penalties. If the taxpayer does not take action within the 90-day period, the IRS will assess the taxes, interest, and penalties and send the taxpayer a bill.

The 90-Day Letter is a serious warning from the IRS that the taxpayer is in trouble. If the taxpayer does not take action, the IRS will take further action, which could include garnishing wages, seizing assets, or even filing a lien against the taxpayer's property.

There are a few things that taxpayers can do if they receive a 90-Day Letter. First, they should carefully review the letter to make sure that they understand the reason for the letter. Second, they should contact a tax professional to discuss their options. A tax professional can help the taxpayer determine if they need to file an amended return, and can also help the taxpayer negotiate with the IRS to resolve the issue.

If the taxpayer does not take action within the 90-day period, the IRS will assess the taxes, interest, and penalties and send the taxpayer a bill. The taxpayer will then have 30 days to pay the bill in full. If the taxpayer does not pay the bill in full, the IRS will begin collection action.

Collection action can include garnishing wages, seizing assets, or even filing a lien against the taxpayer's property. If the taxpayer's wages are garnished, the IRS will take a portion of the taxpayer's paycheck each pay period until the debt is paid in full. If the taxpayer's assets are seized, the IRS will take possession of the assets and sell them to pay the debt. If the taxpayer's property is liened, the IRS will place a lien on the property, which means that the taxpayer cannot sell the property without first paying off the debt.

The 90-Day Letter is a serious warning from the IRS that the taxpayer is in trouble. If the taxpayer does not take action, the IRS will take further action, which could have serious consequences for the taxpayer.