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What is the IRS Appeals Process?

The IRS appeals process allows you to request a reconsideration of the agency’s decision regarding your tax obligations. If you are appealing an IRS audit because your tax liability has increased significantly, just filing the appeal will stop the collection process temporarily. However, interest and penalties will continue to accrue. Taxpayers have just 30 days from the IRS auditor’s letter to file. Overall, expect as much as one year to elapse before it is heard.

It is crucial to file the appeal on time and to file it correctly. Failure to do so may jeopardize your ability to have an IRS appeals officer hear your story. That is why you should consult with us at Ayar Law. The odds of having your tax obligation reduced are very good. An appeals officer can make a decision on the spot.

The Appeals System

The appeal system is designed to settle differences on tax issues without the need to go to court. Instead, an appeal is sent to a local office. It is not the same IRS office that conducted the audit. Office conferences are conducted in person or via telephone or correspondence.

Filing a Formal Protest

You must file a formal protest when your appeal involves an amount exceeding $25,000. Appeals under this amount, known as a small case request, require filing IRS Form 12203, Request for Appeals Review.

For a formal protest, you must include the following information:

  • Taxpayer name and address
  • Daytime phone number
  • Related tax period or years
  • A copy of the IRS letter and proposed tax adjustment
  • A statement expressing that you wish to file an appeal of the IRS findings to the Appeals Office.

You must explain why you disagree with the IRS findings in the statement. Provide facts supporting your position. If you are relying on any law or authority, include that information. Attach any relevant documents supporting your argument.

Sign the letter stating that it is true, under penalty of perjury. Include the following:

“Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.”

Basis for Appeal and IRS Appeal Alternatives

While there are numerous bases for a tax appeal, they must apply to tax law. You cannot base an appeal on religious, moral, political, constitutional, or conscientious grounds, as per the IRS. An alternative to filing an IRS appeal is taking the case directly to tax court. Speak with a knowledgeable tax attorney about this option.

Contact an IRS Appeals Lawyer

If you need the services of an experienced IRS appeals attorney, contact us at Ayar Law today. Because an IRS appeal is time-sensitive, reach out to us as soon as possible for a complimentary strategy session.