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anyone else on this. had a handful of clients receive a notice of additional tax due from the Indiana Dept of Revenue. basically said the 2012 return was matched to the 1040 filed with the IRS and differences were found and the taxpayer owed $90. if the taxpayer disagrees they need to get a transcript from the IRS and compare it to the state return. it actually has nothing to do with the federal return...... it has to do with the additional deduction for children of $1500. the state simply disallowed this deduction and sent out a notice saying you owe the money. when in fact they have no way of knowing if the deduction is valid or not. . this is a total fishing expedition by the IDR. if you call the dept and say hey i am really supposed to get this they eliminate the notice. however, why didnt they send out a notice that says we are checking this deduction please call us so we can verify the deduction? or something that even said what the issue was instead of a notice saying send us some money. i am sure there are many people who dont owe this who will just say they dont want to cause trouble and send the money in. what a joke!!!!! sorry just venting and trying to see if others from IN were po'ed by this........ i have had calls from clients who were basically "hey,,, you screwed up my return" when there was nothing wrong at all. jeff

The IRS does not close the door with a Notice of Deficiency; they will still accept and consider additional information. They will issue a written response and refer to the date your letter was received by them. I would get a copy of the letter from the client before proceeding and find out exactly how the IRS responded. You should still be well within the 90 day window to petition the tax court.