Tax Audit Appeals – When Your Audit Doesn’t Work Out
If the IRS disagrees with any aspect of your tax return, you may be subject to a tax audit. In most cases, these audits end without substantial problems for the taxpayer where the taxpayer is in the right. However, if your audit results are unfavorable, you may be paying a significant amount of back taxes, interest, and penalties. Fortunately, you can fight the results of a bad audit with tax audit appeals.
What Is Tax Audit Appeals?
Tax audit appeals allow you to disagree with an IRS auditor’s findings (also known as an IRS examiner). If the IRS tax audit appeal is successful, you may be able to reduce the amount of taxes, interest, or penalties you owe to the IRS. All tax audit appeals are with the IRS Office of Appeals. This means that you won’t have to deal with your original IRS auditor when you file an appeal. Most of the IRS employees working in this branch are former auditors who now review IRS audit appeal cases and make impartial decisions. They have more authority and experience than the typical IRS auditor. Their ultimate goal is to resolve the issue by reaching a successful compromise with the taxpayer and avoiding costly litigation.
When Should I File a Tax Audit Appeal?
When your tax audit is complete, you will receive a detailed report of the auditor’s determinations, including a breakdown of any changes to your return, taxes you owe, and penalties associated with these new taxes. If you review this document and disagree with the auditor’s findings, filing an IRS appeal may be the best choice.
If you plan to file a tax examination appeal, do not sign and return your copy of the tax auditor’s report. When your approval is not received, the IRS will send you a letter explaining your right to appeal the audit results. You will have thirty days from the date listed on this letter to submit your formal appeal to the IRS.
How Do I File A Tax Audit Appeal?
To appeal the outcome of your tax audit, you must submit a formal written protest to the IRS. This protest must include a copy of your audit report, a statement indicating that you want to appeal the audit results, the reason for your disagreement, and any facts and tax law (or other secondary sources) supporting your opinion. You must also include the tax periods involved in the audit and your name, address, and telephone number. If any tax authority supports your position, have that information in the protest. Finally, you must include the following statement “Under the penalties of perjury, I declare that the facts stated in this protest and any accompanying documents are true, correct, and complete to the best of my knowledge and belief.”
What if I Cannot Appeal in Time?
If you don’t think you will be able to submit a formal written protest to the IRS within the original 30-day deadline, you can request a 30-day or 60-day extension. In most cases, the IRS will grant this request. Otherwise, if late, the only option to appeal is to go to Tax Court.
What Happens After I Submit My Tax Exam Appeal?
After you have submitted your formal written protest, you must wait for an employee from the Office of Appeals to respond to the protest. In most cases, you will receive a response within three months. However, if you haven’t received a response within this time, you can ask the Office of Appeals about the status of your case.
Once your request for an IRS exam appeal has been reviewed, an appeals hearing will be scheduled. During this time, you should be collecting evidence and preparing your arguments. It is also a good idea to write down an outline of everything you want to tell the appeals officer so you don’t leave anything out. Then, when the day of the hearing arrives, present your arguments clearly and concisely. Avoid making disparaging remarks about the auditor or the IRS, and try not to appear angry or aggressive.
After you have presented your case, the appeals officer may ask for additional documentation. They may also inform you that more time will be necessary to decide on your tax audit appeal.
Do I Need Professional Assistance?
The tax audit appeals process is complex, and a sound understanding of the IRS tax code (aka “the law”) is essential. In addition, IRS appeal case settlements often depend on the ability of the taxpayer or the taxpayer’s representative to negotiate with the tax appeals officer effectively. If you are facing a tax exam appeal, consulting with an IRS examination appeals professional, such as Peace Of Mind Tax Help, can be beneficial and make the difference between a favorable and unfavorable outcome. Because we have extensive experience with IRS representation, we can help you collect evidence, prepare arguments and negotiate the best possible compromise with the appeals officer.
Peace Of Mind Tax Help IRS Tax Appeals Representation
One of your most important rights as a taxpayer is having a qualified tax resolution professional, such as an Enrolled Agent (EA), represent you in front of the IRS Office of Appeals with your audit appeal.
When you hire Peace Of Mind Tax Help to assist you with your tax audit appeals, we will guide you through the process while advocating on your behalf and protecting your interests.
Peace Of Mind Tax Help is here to help you because when you’re dealing with a lousy tax audit, the worst thing you can do is do nothing and be taken advantage of. The best decision is to take the necessary first step and to try to obtain some tax debt relief by filing an IRS audit appeal!
Click on the “Get Peace Of Mind” button at the top of the page to take that first step.