What This Letter Means

Letter 950-E is the IRS's 30-Day Letter for excise tax examinations. Its full title is 30-Day Letter, Straight Deficiency or Over-Assessment for Excise Tax Examination Cases. An excise tax examiner finished reviewing your return and proposes changes you haven't agreed to. The letter gives you the findings and your options.

What Comes With It

The 30-day letter package usually includes:

  • The examination report with a written explanation of the adjustments, often on Form 886-A, plus any schedules.
  • Form 2504-E, Agreement to Assessment and Collection of Additional Tax and Acceptance of Overassessment.
  • Form 13683, Statement of Disputed Issues.
  • Publication 3498, The Examination Process.

The response date is at least 30 days from the date of the letter.

Your Options

  • Agree. Sign and return Form 2504-E. The IRS assesses the tax (or allows the overassessment) and closes the case.
  • Agree in part. You can agree to some adjustments and dispute the rest.
  • Disagree. File a written protest asking for a conference with the IRS Independent Office of Appeals. Follow the protest instructions in the letter and Publication 3498. Explain each adjustment you dispute, the facts, and the law you rely on.

If you do nothing, the IRS moves forward with the assessment. For the excise taxes covered by deficiency procedures, a notice of deficiency comes first.

Why Appeals Matters Here

Notices of deficiency and Tax Court review before assessment apply only to certain excise taxes, those under chapters 41 through 44 of the Code. Many other excise taxes are assessed without a notice of deficiency. For those, a protest to Appeals may be your only chance to dispute the tax before it is assessed. Don't let the 30 days pass without a decision.

Practical Steps

Mark the response date. Compare every adjustment in the report to your records. If you need more time, call the examiner before the date passes and ask. Get any extension in writing.

If you received Letter 950-E and want to challenge the excise tax findings, call us at (813) 229-7100.