IRS Notice LTR692: Statutory Notice of Deficiency (90-Day Letter)
A formal notice of additional tax due, with 90 days to petition the U.S. Tax Court.
- Response deadline
- 90 days from the letter date
- Category
- Appeals & Collection Due Process
- Severity
- Critical
What does an IRS LTR692 notice mean?
A Letter 692 is a Statutory Notice of Deficiency — often called a '90-day letter.' It is the IRS's formal, legal determination that you owe additional tax and is the document that gives you the right to challenge the deficiency in the U.S. Tax Court before paying. The 90-day deadline is set by statute and generally cannot be extended.
Why did you receive a LTR692?
Earlier proposed changes (from a CP2000 or an examination 30-day letter) were not resolved, so the IRS issued this formal notice to preserve its ability to assess the tax.
How to respond to a LTR692 notice
Decide quickly. If you disagree, file a petition with the U.S. Tax Court within 90 days (150 days if the notice is addressed outside the United States) — this is the only way to contest the tax without paying it first. If you agree, sign the waiver and arrange payment. Given the legal stakes and strict deadline, consult a tax attorney or qualified representative.
What happens if you ignore it?
After 90 days the IRS will assess the deficiency and begin collection. Your remaining option is to pay the tax and then sue for a refund — a slower, costlier path than a timely Tax Court petition.
Common resolutions
- File a Tax Court petition within 90 days
- Agree and pay
- Consult a tax attorney
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For informational purposes only. Not legal, tax, or medical advice.