The IRS and Tax Appeals: What You Need to Know

Did you know you can appeal a decision the IRS has made disallowing a deduction or credit?

Tax appeals are a common way to resolve a dispute with the IRS. The IRS will have an appeals conference with you to settle the dispute.

The representative is from a separate and independent IRS office to make a fair decision on the appeal.

If you want to appeal an IRS decision, you need to know how to get started and navigate your way through the process. Don’t worry. This article will walk you through all the steps on how to appeal your tax dispute.

Tax Appeals Explained

Typically any decision or action taken by the IRS is eligible for an IRS tax appeal. There are few instances when an appeal is not right for you.

If you receive a bill or correspondence that doesn’t mention an appeal, you can not file an appeal. Additionally, if you are concerned you cannot pay the amount you owe, you cannot file an appeal.

To file an IRS appeal, you need to prepare a formal written protest. The document must include:

• Your personal contact information
• An affirmative statement requesting an appeal
• A copy of the notification you received from the IRS
• The relevant tax years you dispute
• Statements of law and fact that support your opinion

Once submitted, a tax appeals employee will review your case to see if it qualifies for an appeal. If it qualifies, they will review your case further and schedule a conference with you.

During the conference, you will present your case. You want to resolve the issue during this meeting to save time and money.

Once both parties settle, the IRS Appeals Officer will issue you Form 870. This is the Consent to Proposed Tax Adjustment form. When the form is complete, you must pay the agreed amount.

You cannot challenge the tax issue any further after signing this form. Yet, if you lose your challenge or still dispute the amount, you can take the IRS to court.

However, you will need to pay the amount in dispute and file appropriate documentation for a refund. You will file this documentation in a U.S. District Court or the Court of Federal Claims.

Need Help With Your Appeal?

Before you begin the IRS appeal process, it is recommended to hire a tax professional such as those with Delia Law Tax Attorneys.

An experienced professional can do the correct research on your situation and provide a formal protest letter to the IRS.

Even though the IRS appeals process is straightforward, it can be complicated to gather the evidence and state your case. A tax expert will assist you every step of the way and help build a stronger tax appeals case.

File your IRS Appeal Today

Tax appeals don’t have to be difficult or stressful. All you need to do is contact the office of appeals or hire a tax professional to start the process.

If you’re ready to file an appeal, get started today. For more information on taxes or other finance-related topics, check out the Business section.