If your tax return was lately under assessment by the IRS and you got written notification of a change the IRS is making to your tax return, such as disallowing a deduction or credit, you have the right to disagree and the right to appeal its verdict. An IRS Tax Appeal is a usual way to resolve misunderstandings you have with the IRS that link up to items you report on your return.
IRS audits aren’t the only thing taxpayers have the right to appeal to. You also have the right to question:
1. IRS collection actions, such as liens, levies, seizures and installment-agreement terminations
2. Penalties and interest the IRS adds to your tax bill.
3. Rejected offers in compromise to settle tax bills. And more
While the audit and collection procedures are centered on the IRS getting as much money as possible, the IRS Tax Appeal process is about finding a settlement for the matter.
The appeals conference is an informal meeting in which an unbiased officer settles the dispute in the same manner a judge does between a plaintiff and defendant in court. An Appeal is a separate and independent IRS office where disagreements relating to the application of tax law can be resolved on a neutral ground for both the taxpayer and the government. The main purpose of Appeals is to settle tax disagreements without having to go to the Courts and a formal trial. You are entitled to engage a practitioner to represent you at the conference provided they are certified to practice before the IRS, such as an enrolled agent, attorney or CPA. If you are displeased with the officer’s decision, you may then file suit in court.
What Can Be Appealed?
On a general note, any type of decision or action taken by the IRS can be appealed. Some of which include:
✔ Audits/Examination Determinations
✔ Offers in Compromise
✔ Requests for Penalty Abatement or Removal
✔ Liens
✔ Levies
✔ Innocent Spouse Decisions
✔ Installment Payment Plans
✔ Seizures
However, it is significant for you to have knowledge on the tax code and whether an IRS tax appeal is a feasible solution to your problem.
Is An IRS Tax Appeal The Answer To Your Tax Problem?
IRS tax appeals are a common way to resolve misunderstandings you have with the IRS that relate to items you report on your return. IRS Appeals could be the answer to your tax problem if ALL of the following are applicable:
▪ You got a letter from the IRS explaining your right to appeal the IRS’s decision.
▪ You do not agree with the IRS’s decision and you have a substantial argument to appeal
If you decide to go this route, there are steps you must follow to ensure that you retain your right to an appeal. You must file a Request for Appeals Review within the legal time frame, generally within a period of 30 days, and follow the IRS guidelines for an appeals request to be valid.
An Appeal is not for you if any of the following apply:
▪ The correspondence you received from the IRS was a bill and there was no mention of Appeals.
▪ Your only concern is that you do not have enough money to pay the amount you owe.
The aim of the IRS Appeals Division is to resolve disputes between taxpayers and the IRS. The rules governing the appeals process are specific and must be adhered to. The appeal is your chance to restate you case and explain why you should be given another assessment; a chance that should not be wasted without professional representation.
If you are indecisive on whether you should appeal your tax dispute, ensure to contact a Tax expert to determine whether you have a valid dispute that the:
1. IRS made an erroneous decision based on a misinterpretation of the law.
2. IRS did not properly apply the law due to a misunderstanding of the facts.
3. IRS is taking improper collection action against you, or your offer in compromise was denied.
If you believe the facts used by the IRS are erroneous, then you should have records or other proves to buttress your position.
How to Prepare a Request for IRS Tax Appeal
In order to commence the IRS tax appeal process is advisable to find a professional tax professional to do the appropriate research on your tax situation and submit an official protest letter. The protest letter will affirm that you are not in synchrony with the IRS determination and provide reasons buttressing your position.
If you disagree with the IRS’s determination, an official written protest is needed in all cases to request an Appeals conference, unless you are eligible for the small case request process discussed below or another special appeal procedure. You may stand in yourself, or have a professional represent you; the representative must be an enrolled agent (EA), attorney or a certified public accountant (CPA).
A written protest must contain your personal contact information, a statement which affirms that you are requesting your right to an appeal, a copy of the notification you got from the IRS, the relevant tax years that lead to the dispute and statements of law and fact that support your tax return position.
If the amount in dispute, including penalties the IRS assesses, is $25,000 or less, you can tender an informal small-case request. A small-case request generally relieves you of the duty to submit formal protest documentation. However, statements of law and fact that support your tax return position are still important for a successful outcome with your tax appeal. You must be ready to make and support your position clear.
In each case where you believe the facts used by the IRS are erroneous, you will want to make sure you have records or other support existing to back up your position.
While you don’t necessarily need professional representation at an Appeals Office meeting and can go it alone, an experienced tax representative can save you valuable time and headaches and in making sure that you have the suitable possible outcome with an IRS tax appeal. If your tax return was lately under assessment by the IRS and you got written notification of a change the IRS is making to your tax return, such as disallowing a deduction or credit, you have the right to disagree and the right to appeal its verdict. An IRS Tax Appeal is a usual way to resolve misunderstandings you have with the IRS that link up to items you report on your return.
IRS audits aren’t the only thing taxpayers have the right to appeal to. You also have the right to question:
1. IRS collection actions, such as liens, levies, seizures and installment-agreement terminations
2. Penalties and interest the IRS adds to your tax bill.
3. Rejected offers in compromise to settle tax bills. And more
While the audit and collection procedures are centered on the IRS getting as much money as possible, the IRS Tax Appeal process is about finding a settlement for the matter.
The appeals conference is an informal meeting in which an unbiased officer settles the dispute in the same manner a judge does between a plaintiff and defendant in court. An Appeal is a separate and independent IRS office where disagreements relating to the application of tax law can be resolved on a neutral ground for both the taxpayer and the government. The main purpose of Appeals is to settle tax disagreements without having to go to the Courts and a formal trial. You are entitled to engage a practitioner to represent you at the conference provided they are certified to practice before the IRS, such as an enrolled agent, attorney or CPA. If you are displeased with the officer’s decision, you may then file suit in court.
What Can Be Appealed?
On a general note, any type of decision or action taken by the IRS can be appealed. Some of which include:
✔ Audits/Examination Determinations
✔ Offers in Compromise
✔ Requests for Penalty Abatement or Removal
✔ Liens
✔ Levies
✔ Innocent Spouse Decisions
✔ Installment Payment Plans
✔ Seizures
However, it is significant for you to have knowledge on the tax code and whether an IRS tax appeal is a feasible solution to your problem.
Is An IRS Tax Appeal The Answer To Your Tax Problem?
IRS tax appeals are a common way to resolve misunderstandings you have with the IRS that relate to items you report on your return. IRS Appeals could be the answer to your tax problem if ALL of the following are applicable:
▪ You got a letter from the IRS explaining your right to appeal the IRS’s decision.
▪ You do not agree with the IRS’s decision and you have a substantial argument to appeal
If you decide to go this route, there are steps you must follow to ensure that you retain your right to an appeal. You must file a Request for Appeals Review within the legal time frame, generally within a period of 30 days, and follow the IRS guidelines for an appeals request to be valid.
An Appeal is not for you if any of the following apply:
▪ The correspondence you received from the IRS was a bill and there was no mention of Appeals.
▪ Your only concern is that you do not have enough money to pay the amount you owe.
The aim of the IRS Appeals Division is to resolve disputes between taxpayers and the IRS. The rules governing the appeals process are specific and must be adhered to. The appeal is your chance to restate you case and explain why you should be given another assessment; a chance that should not be wasted without professional representation.
If you are indecisive on whether you should appeal your tax dispute, ensure to contact a Tax expert to determine whether you have a valid dispute that the:
1. IRS made an erroneous decision based on a misinterpretation of the law.
2. IRS did not properly apply the law due to a misunderstanding of the facts.
3. IRS is taking improper collection action against you, or your offer in compromise was denied.
If you believe the facts used by the IRS are erroneous, then you should have records or other proves to buttress your position.
How to Prepare a Request for IRS Tax Appeal
In order to commence the IRS tax appeal process is advisable to find a professional tax professional to do the appropriate research on your tax situation and submit an official protest letter. The protest letter will affirm that you are not in synchrony with the IRS determination and provide reasons buttressing your position.
If you disagree with the IRS’s determination, an official written protest is needed in all cases to request an Appeals conference, unless you are eligible for the small case request process discussed below or another special appeal procedure. You may stand in yourself, or have a professional represent you; the representative must be an enrolled agent (EA), attorney or a certified public accountant (CPA).
A written protest must contain your personal contact information, a statement which affirms that you are requesting your right to an appeal, a copy of the notification you got from the IRS, the relevant tax years that lead to the dispute and statements of law and fact that support your tax return position.
If the amount in dispute, including penalties the IRS assesses, is $25,000 or less, you can tender an informal small-case request. A small-case request generally relieves you of the duty to submit formal protest documentation. However, statements of law and fact that support your tax return position are still important for a successful outcome with your tax appeal. You must be ready to make and support your position clear.
In each case where you believe the facts used by the IRS are erroneous, you will want to make sure you have records or other support existing to back up your position.
While you don’t necessarily need professional representation at an Appeals Office meeting and can go it alone, an experienced tax representative can save you valuable time and headaches and in making sure that you have the suitable possible outcome with an IRS tax appeal.