The document outlines the audit process and options for taxpayers who receive an audit notice from the IRS regarding a potential tax deficiency. It shows that after receiving an audit notice, taxpayers can either accept the changes and potential tax deficiency proposed by the IRS, or they can appeal and start the audit process which may result in the IRS issuing a "no change" notice, a final tax deficiency notice, or the taxpayer lowering the amount of tax owed. The graphic illustrates the steps a taxpayer can take including appealing first to the tax court and then various federal courts if they disagree with the IRS's findings.

1. Audit Notice for
“Proposed Tax
Deficiency”
(30 Day Letter)
Accept Changes You Appeal
or Tax Deficiency (Audit Process
(You Lose) Begins)
IRS has 3 years
under Statute of
Limitations
IRS issues a Tax
IRS issues a “No Deficiency
Change” (You either Lose
(You Win) or you Lowered
the Tax)
Notice of
Deficiency
(90 Day Letter –
150 Day Letter if
address to an
International
Taxpayer)
Appeal to Tax
Court
Pay Tax (Small Tax Case
Division if under
$50,000)
Federal Claims
Federal District
Court
Court
(Apply for Refund)
Federal Appellate
Court
Federal Supreme
Court