Critical Deadline Calendar

This deadline has passed without response. This was the deadline set by Letter 5153 to either agree to the proposed changes or contact the examiner to disagree.

What this means: Missing this deadline does NOT mean you agree or that the case is lost. It simply means the IRS will now proceed to issue a Statutory Notice of Deficiency (SNOD). This is actually part of our strategy — the SNOD triggers your right to petition Tax Court, which is where we want this case.

What was NOT lost: Your right to dispute in Tax Court. Your right to go to Appeals. All substantive defenses remain intact.

This is the response deadline for the 2023 examination (Letter 950). Decision needed: whether to respond requesting Appeals consideration, or allow this to proceed to SNOD stage like the other years.

Recommended action: Coordinate with tax attorney. If representation is retained before June 5, file a protest requesting Appeals for 2023. If not, letting it proceed to SNOD preserves all rights.

Typically 30–60 days after the missed response deadline, the IRS issues the SNOD by certified mail. This is the formal “90-day letter” that triggers the Tax Court filing clock.

Critical: The SNOD will be sent to the last known address on file. Make sure the IRS has the correct mailing address. Check the mailbox carefully — certified mail requires signature.

You have exactly 90 days from the date of the Statutory Notice of Deficiency to file a petition with the United States Tax Court. This deadline is jurisdictional — it cannot be extended, excused, or waived for any reason.

If you miss this deadline: You permanently lose the right to contest in Tax Court without first paying the full $835K+ assessment. There is no second chance. No court can grant relief.

Our plan: The petition is already drafted and held in escrow. Upon receipt of the SNOD, counsel verifies the numbers, obtains signature, and files immediately. We will NOT wait until day 89.

After the petition is filed, the IRS has 60 days to file an Answer. The case gets assigned to a Tax Court judge and placed on a trial calendar (typically the Denver session).

Most fraud-penalty cases (70–80%) settle at IRS Appeals before going to trial. After the petition is filed, the case is typically referred to Appeals for a settlement conference. This is the most productive venue for reaching a compromise.

Expected outcome range: Fraud penalty reduced to accuracy-related penalty (§6662, 20% instead of 75%). Adjustments reduced 30–40%. Total resolution in the $325K–$450K range via installment agreement.

If Appeals fails to produce a settlement, the case proceeds to trial before a Tax Court judge. The trial would likely be held in Denver (Tenth Circuit venue). The IRS bears the burden of proving fraud by clear and convincing evidence.