IRS Letter 531 – Notice of Deficiency

The IRS audited your tax return and the changes resulted in additional taxes owed. If you want to contest this determination you may petition the U.S. Tax Court.

Type of notice: Return accuracy

Likely next step: Handle an IRS audit

Also see: IRS penalties, IRS bill for unpaid taxes

Why you received IRS Letter 531

  1. You filed a tax return that was selected for an audit.
  2. The auditor proposed changes to the tax return which resulted in an increase in taxes due.
  3. You received a notice giving you 30 days to appeal the proposed increase in taxes.
  4. You either did not appeal the auditor’s changes, or the Appeals Officer agreed with some or all of the auditor’s changes.
  5. The IRS sent Letter 531 to notify you of the tax deficiency and advise you of your right to file a petition in U.S. Tax Court. The petition must be filed within 90 days of the date on the notice. If you do not want to petition the Tax Court, you can sign the waiver which may limit the accumulation of interest.

Notice deadline: 90 days

If you miss the deadline: The IRS will send you a bill for the unpaid balance due.

Want more help?

Your tax professional can deal with the IRS for you. Learn more about H&R Block’s Tax Audit & Notice Services. Or make an appointment for a free consultation with a local tax professional by calling 855-536-6504 or finding a local tax pro.

Related Topics

Related Resources

IRS Letter 1962C – Direct Debit Installment Agreement Granted/Revised

Learn more about letter 1962C, why you received it, and how to handle an IRS 1962C letter with help from the tax experts at H&R Block.

IRS Letter 3173 – Third Party Contacts

The IRS has contacted third parties to help figure out what you owe. Learn more about letter 3173 from the tax experts at H&R Block.

IRS Letter 2673C – Representative/Taxpayer Response

Receive an IRS 2673C letter? Learn more about letter 2673C, why you received it, and how to handle it with help from the tax experts at H&R Block.

Tax Dictionary – Delinquent Return Program

Learn about the IRS Return Delinquency Program. Read the IRS definition and get more insight from the experts at H&R Block.