90-Day Letter


DEFINITION of '90-Day Letter'

An IRS notice sent after an audit stating that there was a discrepancy or error within an individuals taxes and they will be assessed unless petitioned.

BREAKING DOWN '90-Day Letter'

You have 90 days to respond, otherwise the audit deficiencies will result in reassessment.

  1. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  2. Underpayment Penalty

    A tax penalty enacted on an individual for not paying enough ...
  3. Tax Evasion

    An illegal practice where a person, organization or corporation ...
  4. Withholding

    The portion of an employee's wages that is not included in his ...
  5. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  6. Garnishment

    A legal process whereby payments towards a debt owed by an individual ...
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  1. Are Cafeteria plans taxable?

    Whether the benefits you receive through your employer-sponsored cafeteria plan are taxable depends entirely on which benefits ... Read Full Answer >>
  2. Why is the Cayman Islands considered a tax haven?

    The Cayman Islands is one of the most well-known tax havens in the world. Unlike most countries, the Cayman Islands does ... Read Full Answer >>
  3. Why is Panama considered a tax haven?

    The Republic of Panama is considered one of the most well-established pure tax havens in the Caribbean due to extensive legislation ... Read Full Answer >>
  4. How do I get out of my annuity and transfer to a new one?

    If you decide your current annuity is not for you, there is nothing stopping you from transferring your investment to a new ... Read Full Answer >>
  5. Are Cafeteria plans exempt from Social Security?

    Typically, qualified benefits offered through cafeteria plans are exempt from Social Security taxes. However, certain types ... Read Full Answer >>
  6. Why is Andorra considered a tax haven?

    Andorra is one of many locations around the globe considered a tax haven because of its relatively lenient tax laws. However, ... Read Full Answer >>

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