Tax Appeal Process – Disagreement Resolution
Sometimes there is disagreement on tax matters… and the IRS has a tax appeal process that is run through the IRS Office of Appeals to address these disagreements. Most differences can be settled within this system without going to court. The IRS tax appeal process often can be the best option for a taxpayer to resolve his or her tax problem before going to Tax Court.
Reasons for disagreeing must come within the scope of tax laws, however. For example, an appeal of a case cannot be based only on moral, religious, political, constitutional, conscientious, or similar grounds.
A case may be taken directly to tax court if the taxpayer does not want to appeal within the IRS.
Tax Appeal Process Within the IRS
The tax decision reached by the examiner may be appealed to the appeals office, which is separate and independent of the IRS Office that conducted the examination. The IRS office of Appeals does not take sides in a dispute. They are an impartial party and provide an objective point of view for each individual tax case.
Appeals provides a venue where disagreements concerning the application of tax law can be resolved on a fair and impartial basis for both the taxpayer and the government. The mission of Appeals is to settle tax disagreements without having to go to the Courts and a formal trial.
Appeals officers have greater authority and flexibility in deciding cases than auditors. Often they are able to reach a successful compromise with taxpayers.
An appeals office is the only level of appeal within the IRS. Conferences with appeals office personnel may be conducted in person, through correspondence, or by telephone with the taxpayer or its authorized representative.
The taxpayer or its qualified representative must be prepared to discuss all disputed issues at the conference. Most differences are settled at this level.
Only attorneys, certified public accountants or enrolled agents are allowed to represent a taxpayer through the tax appeal process.
The best way to start the IRS tax appeal process is to work with a tax professional experienced in appeals, such as Tax Samaritan.
As your representative, Tax Samaritan will submit a formal protest letter and request the IRS auditor’s file. The protest letter will state that you disagree with the IRS determination, and provide reasons supporting your position. The IRS auditor’s file will provide us with valuable information, as we proceed through the appeals process.
If you disagree with the decision of an IRS employee, you have the right to file an appeal.
Appealing an audit can often reduce (or even eliminate) previously assessed taxes and penalties. However, according to some studies, as few as 10% of taxpayers appeal their audits. Why this percentage is so low is something of a mystery, given the speed of the tax appeal process and the possibility of a successful compromise.
An IRS Appeals Officers’ goal is to end the IRS controversy. If there are tax issues in dispute, the tax appeals office will usually be more willing to consider a taxpayer’s position, than any other employee of the IRS.
At Tax Samaritan, we have successfully assisted taxpayers in challenging IRS determinations via the tax appeal process. Although the appeals process may take several months to complete, taxpayers can achieve significant savings on their tax bill.
As your representative, we will present your case on your behalf. Our goal is to resolve the IRS issue and reach a successful compromise.
At Tax Samaritan, we rescue troubled taxpayers.
If you have received documentation from the IRS informing you of your rights detailing the IRS tax appeals process, you should act quickly, and obtain tax representation.
Click the button below right away to preserve your right to appeal and to get started with the resolution of your tax dispute by pursuing the IRS tax appeal process with representation from Tax Samaritan. We will be happy to provide you with a free quote and no cost 30-minute consultation.
Tax Samaritan is a team of Enrolled Agents with over 25 years of experience focusing on US tax preparation and representation. We maintain this tax blog where all articles are written by Enrolled Agents. Our main objective is to educate US taxpayers on their tax responsibilities and the selection of a tax professional. Our articles are also designed to help taxpayers looking to self prepare, providing specific tips and pitfalls to avoid.
When looking for a tax professional, choose carefully. We recommend that you hire a credentialed tax professional such as Tax Samaritan that is an Enrolled Agent (America’s Tax Experts). If you are a US taxpayer overseas, we further recommend that you seek a professional who is experienced in expat tax preparation, like Tax Samaritan (most tax professionals have limited to no experience with the unique tax issues of expat taxpayers).
Randall Brody is an enrolled agent, licensed by the US Department of the Treasury to represent taxpayers before the IRS for audits, collections and appeals. To attain the enrolled agent designation, candidates must demonstrate expertise in taxation, fulfill continuing education credits and adhere to a stringent code of ethics.
Every effort has been taken to provide the most accurate and honest analysis of the tax information provided in this blog. Please use your discretion before making any decisions based on the information provided. This blog is not intended to be a substitute for seeking professional tax advice based on your individual needs.