Letter 2263, Exception Letter to Notice of Deficiency Rescission, tells you the IRS did not agree to rescind your statutory notice of deficiency. You or your representative asked the IRS to withdraw the 90-day letter, usually on Form 8626, and the IRS said no.
How Rescission Works
Under IRC Section 6212(d), a notice of deficiency can be rescinded only with the agreement of both the taxpayer and the IRS. Rescission is useful when both sides want more time to resolve the case administratively, often in exchange for an extension of the assessment statute. When the IRS declines, the notice of deficiency stands exactly as issued.
The Clock Never Stopped
Requesting rescission does not suspend the 90-day period to petition the Tax Court, and a refusal does not restart it. Count 90 days, or 150 days if the notice was addressed to you outside the United States, from the date on the original notice of deficiency. If that date is close, file the petition now. A pending request, a denial letter, or a conversation with the examiner will not save a late petition.
Settlement Still Happens in Tax Court
Filing a petition does not end negotiations. Most Tax Court cases are settled, often after Appeals reviews them. Petitioning is the way to keep talking without losing your rights.
If you received Letter 2263, call us at (813) 229-7100. Check your petition deadline today.