Receiving a tax notice or letter is never a pleasant experience. It can be confusing and frustrating if you don't understand why you received the notice in the first place. That's why we wrote The Ultimate Guide to Tax Notices and created a tax notice library filled with the most common tax notices and letters you might receive. We believe the process of staying compliant with your taxes should be as effortless as possible.
General Information
- What is the notice number? LTR854C
- What government agency sends this notice? The Internal Revenue Service (IRS)
- What is this notice about? The IRS has denied your penalty abatement request and proposes adjustments to your tax return.
- What should you do if you receive this notice?
- If you agree with the proposed adjustments: Sign and return the agreement form included with the letter.
- If you disagree: Follow the instructions in the letter to file an appeal. You generally have 30 days from the date of the letter to submit a protest to the office that issued it.
- Review related IRS publications: The letter typically references publications that explain how to prepare your appeal or protest.
FAQs & Additional Information
- Does this mean I can’t have my penalties removed at all? It means your penalty abatement request was denied, but you still have the right to appeal if you believe your position wasn’t fully considered.
- What if I miss the 30-day window to appeal? You might lose the opportunity to have an independent review of your case. It’s crucial to act promptly.
- Is the computation report final? The report shows how the IRS arrived at your proposed adjustments, but these adjustments can change if your appeal provides new information.
- Do I need an attorney or CPA for the appeal? You don’t have to hire one, but professional guidance can help you prepare your protest and supporting documents.
- How do I submit my appeal or protest? The letter should include specific steps. Usually, you’ll send a written statement (often called a “protest”) to the address listed, explaining your disagreements and providing evidence.
- What happens once I file my protest? The Independent Office of Appeals will review your case. If they find merit in your argument or evidence, they may adjust or remove the penalties. Otherwise, they’ll uphold the denial.
What does it look like?
How can we help you today?
Are you looking for more information about your tax notice or other challenges? DiMercurio Advisors has a dedicated team supporting tax notices, audits and more. We are passionate about ensuring you are well-informed and in control of your tax situation.
