What the letter means
IRM 4.10.8.12.1 describes 30-day letters as letters “used to transmit the findings of the examination (e.g., audit report) to the taxpayer and allow the taxpayer 30 days to request Appeals consideration of their case.” Letter 950 is the field examination version “for straight deficiency, or mixed deficiency and overassessment cases in Field Examination.” The IRM lists the family:
| Letter | Used for |
|---|---|
| Letter 950 | Straight deficiency, or mixed deficiency and overassessment, in field examination |
| Letter 950-B | Unagreed reports when the taxpayer is in bankruptcy |
| Letter 950-F | Overassessments and no-change with adjustments |
| Letter 950-Z | Unagreed cases in LB&I examination |
| Letter 915 | Office examination 30-day letter |
The letter must come with “A complete examination report” and the waiver form when required, and Publication 3498. The IRM adds: “Pub 3498 must always be enclosed with a 30-day letter even if it was provided with a previous report or letter.” For individuals the unagreed report is generally Form 4549-A with Form 870 as the waiver. See the revenue agent's report.
Why the client got it
The examination proposed changes and no agreement was reached. IRM 4.10.8.12 requires managerial involvement in every unagreed case, and if the case is eligible for Fast Track Settlement, the examiner or group manager is to explain and offer it once the manager has spoken with the taxpayer or representative. The 30-day letter follows.
Some cases are excluded from Appeals and get a different letter, including cases where “Fewer than 365 days (270 days in the case of an estate tax return) remain on the statute of limitations when the case is received in Appeals,” disputes based solely on moral, religious, political or constitutional grounds, and cases with issues designated for litigation.
Deadlines and what happens if they pass
| Clock | Rule | Source |
|---|---|---|
| Protest or small case request | 30 days from the letter date | IRM 4.10.8.12.1; IRS Appeals letters page |
| Statute time to get a 30-day letter | Generally 240 days or more remaining; otherwise an agreed report with Letter 5153 and a consent request | IRM 4.10.8.12.1 |
| Statute time for Appeals to accept | At least 365 days remaining on receipt (180 days on a case returned from Appeals) | IRM 4.10.8.12.1 |
| Partial payment without agreement | IRS asks within 15 days whether it is a payment or a section 6603 deposit | IRM 4.10.8.12.9.2 |
If the 30 days pass with no protest, no agreement and no extension, the case goes unagreed to Technical Services for a notice of deficiency (Letter 531). IRM 4.10.8.12.1 says that when the statute is too short and the taxpayer does not sign a consent, the examiner will “close the case to Technical Services for issuance of a notice of deficiency.” See the notice of deficiency.
How to respond
- Decide which path: agree in full, agree in part, send more facts to the agent, or protest to Appeals. These can be combined: a partial agreement plus a protest of the rest.
- Check the statute. If fewer than 365 days will remain when Appeals receives the case, expect a request to sign Form 872. See statute extensions and the 365-day rule.
- Choose the protest form. Per IRM 4.10.8.12.9.3, if “The total amount for any tax period is not more than $25,000” the taxpayer may make a small case request (Form 12203 can be used); above that, a formal written protest is required. The amount includes proposed tax and penalties.
- Write a protest that meets Publication 5. The IRM says adequacy “is generally not determined based on its substantive content” but the protest must contain every element Publication 5 requires, including reasons for disagreement and supporting facts. Citing a Code section with no reasons is inadequate. See writing a formal protest and the formal protest template.
- Send it to the examiner (the office on the letter), not to Appeals. Ask for confirmation of receipt.
- If paying while disputing, designate the remittance in writing as a section 6603 deposit or a payment of tax. Undesignated partial payments trigger a follow-up letter.
What the IRS does next
If new information arrives after the letter, IRM 4.10.8.12.9.1 says the examiner evaluates it; if the report goes down and no new issues arise, the examiner solicits agreement with Letter 692 and allows 15 days, while a report that “raises new issue(s)” or increases the deficiency requires a new 30-day letter. If a signed agreement or full payment arrives, the examiner closes the case within 10 days. If an adequate protest arrives, the case goes to Appeals; an inadequate protest is returned with more time to perfect it. New evidence first raised in Appeals generally sends the case back to Examination. See the Independent Office of Appeals and the ex parte rules.
Related notices
Letter 2205 opened the field exam. Letter 525 is the campus equivalent of this letter. After a protest, Appeals acknowledges the case and schedules a conference; see the Appeals conference.
Questions practitioners ask
Is the 30-day deadline statutory?
No. It is an administrative deadline. Missing it usually means the case goes to Technical Services for a notice of deficiency, after which the route is the Tax Court (with docketed Appeals).
Can we get more time to protest?
Ask the examiner or group manager before the deadline. Whether more time is possible often depends on how much statute time remains.
What makes a protest inadequate?
Missing Publication 5 elements. IRM 4.10.8.12.9.3 gives examples: citing IRC 162 without reasons or facts, or disagreeing solely on inability to pay. The examiner returns it with time to fix it.
Should we include new documents with the protest?
New information should go to the examiner first. Evidence raised for the first time in Appeals generally sends the case back to Examination.
Do we have to sign Form 872 to go to Appeals?
Only if the statute would be too short for Appeals (fewer than 365 days on receipt). Refusing means the case is closed for a notice of deficiency instead.