IRS Letter 531
Notice of Deficiency
IRS Letter 531 is a Notice of Deficiency, which means the IRS has determined that you owe additional tax. It is one of the most serious letters the IRS sends and gives you 90 days to file a petition with the U.S. Tax Court if you disagree.
This is your last opportunity to challenge the IRS’s findings before they become final.
▸ Why Did I Receive IRS Letter 531?
You received this notice because:
The IRS audited your return and is proposing changes
You didn’t respond to earlier notices like CP2000 or Letter 525
The IRS believes you underreported income, took ineligible deductions, or misstated credits
You did not file a return, and the IRS created a Substitute for Return (SFR) based on third-party data
▸ What’s in the Letter 531?
This notice includes:
The tax year(s) the IRS believes were incorrect
A detailed explanation of the proposed changes
The amount of additional tax you owe
Your right to file a petition with the U.S. Tax Court
A strict 90-day deadline (or 150 days if you're outside the U.S.)
- If you don’t respond within 90 days, the IRS will assess the tax and begin collection. You lose the right to challenge the changes in court unless you first pay the balance.
▸ What Should You Do?
Review the IRS’s proposed changes carefully
If you agree, you can sign the waiver and pay the balance
If you disagree, file a petition with the U.S. Tax Court within 90 days
Do not ignore this letter, it has legal and financial consequences
▸ When to Call a Tax Attorney
Letter 531 is not just a bill, it’s a legal document that opens the door to IRS enforcement. A tax attorney can:
Review the IRS’s position and determine if the changes are justified
File a formal petition with the U.S. Tax Court
Help you prepare documentation and legal arguments
Negotiate settlement options or penalty relief if appropriate
This is your last chance to stop the IRS from finalizing the debt.
▸ Respond Before It’s Too Late
The 90-day deadline is firm and once it passes, your options shrink dramatically.
Call (903) 595-1000 or fill out this quick form to schedule a consultation and protect your rights today.