If you have received a notice that the IRS has proposed adjustments to your tax return, you have the right to appeal those proposed adjustments. The IRS has two main methods by which you can file an appeal. The first method is to file an administrative appeal. The second method is to appeal through Tax Court. However, the IRS Appeals process is less formal and less costly than court proceedings and is not subject to judicial rules of evidence or procedure.
IRS Administrative Appeal
You will need to decide which method is best for your particular circumstances. An administrative appeal is done by the IRS Office of Appeals. The IRS has recently made changes to the IRS Office of Appeals to ensure that they are more committed to fair, independent, and unbiased review and resolution. In addition, taxpayers do not give up judicial review by coming to Appeals. In appeals, you will be able to appeal both the underlying tax and any proposed penalties. A written protest letter requesting an appeal should outline all issues that are in dispute based on the facts and pertinent tax law. You must send your formal written protest within the time limit specified in the letter. Generally, the time limit is 30 days from the date of the letter.
There are specific deadlines for filing a tax appeal with the IRS that you must abide by. They will be outlined in the correspondence you receive from the IRS. Moreover, the appeals group of the IRS acts as an appellate arm of the IRS. It reviews the documentation that has been provided to the IRS from you during the audit or during the collection matter. Under AJAC, the IRS appeals officer can assign an auditor to review new documentation that you provide to the IRS appeals group that wasn’t provided previously. Therefore, if new issues are raises, the appeals officer should remit the case to the examination department to fully develop the issue. To a certain extent, you are also allowed to provide additional information or documentation that will be helpful to your case.
IRS Collection Appeals
If you disagree with a lien, levy, seizure, or denial or termination of an installment agreement, you may also have appeal rights. As such, the IRS appeals function for collection actions is the Collection Appeals Program or Collections Due Process.
Collection Appeals Program (CAP) is generally quick and available for a broad range of collection actions. However, you can’t go to court if you disagree with the Appeals decision. In other words, you will not receive a final notice of determination.
You may go through the CAP process if you are involved in any of the following collection actions:
- Rejection of Installment Agreement
- Termination of Installment Agreement
- Modification of Installment Agreement
Furthermore, you are entitled to request a Collection Due Process (CDP) hearing with IRS Appeals if the IRS sends you a notice that states you have the right to request a CDP hearing, such as:
- Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320
- Final Notice – Notice of Intent to Levy and Notice of Your Right to A Hearing
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing
- Post Levy Collection Due Process (CDP) Notice
Do you need to file an IRS appeal? Contact a Tax Attorney
A tax attorney can assist you with an IRS appeal. The stated mission of Appeals is to be independent and neutral. However, make no mistake that IRS Appeals Officers represent the government’s position and will protect the best interests of the IRS. If you have received a final notice of an IRS action, contact a Los Angeles tax attorney at Disparte Tax Law for a free consultation.