Notice of Deficiency & Taxpayers Last Known Address

If you have a tax deficiency and the IRS needs to notify you they will send you a letter to the last known address that is on file. This address is the place of residence that the IRS believes the taxpayer lives and will receive the notice. It doesn’t guarantee that you will receive the notice in certain situations.

Notice of Deficiency Mailed To Last Known Address

The IRS will use the address that is listed on the most recent filed tax return. This could be the current year or going back any number of years depending on the last time you filed your tax return. The IRS will actually update your address using the United States Postal Services database if a new address is available. This means that your address will be updated regardless of when you filed your last tax return.

Different Types of Returns

Depending on the type of return will determine that last known address to be used for a tax deficiency. Individual tax returns are kept separate from gift, estate, and other types of tax returns in regard to last known addresses. This means that the IRS will not use an address from your gift tax return for a deficiency regarding your individual tax return.

You Don’t Have To Read a Notice of Deficiency

The IRS will mail your tax deficiency notice to your last known residence, which is sufficient when attempting to notify you. This means that no matter the situation, the IRS considers you’re notified of your tax deficiency. You do not have to open or read the letter, once it is sent, that is all the IRS is going to do. Even if the Postal Service returns your notice to the IRS, it is still considered to have reached you.

What If I Never Received A Notice?

If you did not receive your tax deficiency notice in the mail you will still become aware of it after a period of time. Once the IRS moves your case into the collection phase, they will begin to aggressively pursue you for your tax liability.

Staying Current with the IRS

It is always easier to stay current with the IRS. If you cannot, be informed and reach out to them. Do not let things get out of hand because the IRS will not attempt to notify you beyond a simple letter that you do not even have to open. Once collects start against you, it can be even harder to get the IRS to reason with you. Better to stay on top of things than to let them become a huge mess.

About Paul Gaulkin CPA

Paul Gaulkin is a Certified Public Accountant and enrolled with the U.S. Treasury to practice before the IRS. Mr. Gaulkin possesses unique technical knowledge in the process of securing relief for taxpayers nationwide with IRS and State tax problems. With an accounting degree from Florida International University, he is able to transform complex tax and accounting problems into easy to understand solutions.


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