What is an Appeal?
A tax appeal is a process by which United States taxpayers can challenge Internal Revenue Service (IRS) decisions related to their taxes. This process provides an opportunity to seek an additional review of their case and potentially resolve certain tax disputes without turning to traditional litigation. Tax appeals are typically handled by the Office of Appeals, a separate division in the IRS. The Office of Appeals acts as an independent entity and impartial platform for taxpayers to dispute IRS decisions.
Key Takeaways
- Tax appeals allow US taxpayers to challenge Internal Revenue Service (IRS) decisions related to their taxes.
- Taxpayers have the right to challenge IRS audits, IRS collection actions, penalties and other important IRS decisions.
- The Office of Appeals, which operates independently from other departments within the IRS, is responsible for handling tax appeals.
Appealing an IRS Decision
In the event of an IRS decision that you disagree with, or if you believe you have been unfairly assessed a tax penalty, it is essential to remember that you have the right to initiate an appeal. The process of appealing an IRS decision typically goes as follows:
- Understand Your Rights - The first step in the tax appeal process is to carefully review your taxpayer rights and figure out the specific issues being challenged. During this first step, you may want to meet with an experienced tax attorney who will help you decide the best way to go about your appeal.
- File a Protest - In order to officially exercise your right to an appeal, you must prepare a formal written protest. This document usually includes your personal contact information as well as a copy of the IRS decision that you are disputing.Â
- Cooperate with the Appeals Officer - After filing your written protest, your appeals officer may reach out to request additional information to support your case. Moreover, you will typically be asked to attend a hearing in which you will present your case to the officer along with all relevant evidence and testimony to support your claims.
- Negotiate a Settlement or Compromise - At this stage, you have the option to negotiate a settlement or reach a compromise with the IRS. In certain scenarios, this can entail devising a payment plan or opting for an offer in compromise, which enables you to pay a lesser amount of taxes.
- Receive a Final Decision - If an agreement cannot be reached through negotiation or compromise, the appeals officer will provide a final decision. If you still disagree with the appeal decision, you can use this document to pursue further appeals or challenge the decision in litigation.
Bottom Line
Exercising your right to appeal an IRS tax decision can help you achieve the desired outcome in the aftermath of a tax dispute. Nonetheless, the tax appeal process can seem complex and intimidating. Working with a qualified legal professional can ensure that your tax appeal process will run smoothly. Obtaining the services of proficient legal professionals can ensure that your rights are safeguarded and that you receive optimal representation throughout the appeals process. Contact an expert tax attorney today at Attorney At Law.