If you have just gone through a IRS audit and wish to appeal the results of your IRS audit contact us today so we can review the results of your case and go over tax strategies and opinions on how to be successful on the next level.
We are South Florida tax experts for the IRS on appeal. We are comprised of tax attorneys, certified public accountants, and former IRS agents and managers with over 60 years of working directly in the local, district, and regional tax offices of the Internal Revenue Service right here in South Florida.
Also on staff is a former IRS appeals agent of over 25 years. We are one of the most experienced tax firms in South Florida dealing with the IRS audit appeal system.
How to File a IRS Audit Appeal
Most differences can be settled within this system without going to court.
Reasons for disagreeing must come within the scope of tax laws, however.
A IRS Audit 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. is best in each situation to go to the IRS audit appeal to understand the strategies in the reasoning of the Internal Revenue Service.
We never recommend any taxpayer go directly to tax court but the IRS audit appeal is the most logical and cost-effective place to try to settle your differences.
Appeal Within the Internal Revenue Service
The tax decision reached by the examiner may be appealed to a local appeals office, which is separate and independent of the IRS Office that conducted the examination.
An appeals office is the only level of appeal within the IRS.
IRS Conferences with appeals office personnel may be conducted in person, through correspondence, or by telephone with the taxpayer or its authorized representative.
Instructions for requesting a conference with an appeals officer are provided in the letter of proposed tax adjustment.
In FSLG, the Letter 950 is generally used to propose adjustments to employment taxes. It states that to request a conference with an appeals officer, the taxpayer will need to file either a small case request or a formal written protest with the contact person named in the letter.
Whether you file a small case request or a formal written protest depends on several factors.
If a conference is requested the examiner will send the conference request letter to the appeals office to arrange for a conference at a convenient time and place. The taxpayer or its qualified representative should 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 before Appeals.
Making a Small Case Request for a IRS Audit Appeal – $25,000 or less.
A small case request is appropriate if the total amount of tax, penalties, and interest for each tax period involved is $25,000 or less.
If more than one tax period is involved and any tax period exceeds the $25,000 threshold, a formal written protest for all periods involved must be filed.
The total amount includes the proposed increase or decrease in tax and penalties or claimed refund.
To make a small case request, the instructions in the letter of proposed tax adjustment provide that the taxpayer should send a brief written statement requesting an appeals conference and indicate the changes with which it does not agree with and the reasons it does not agree with them.
Be sure to send the protest within the time limit specified in the letter you received, which is generally 30 days. if the IRS does not receive your IRS audit appeal within the 30 days you lose your right to appeal with the Internal Revenue Service. It is very important you keep mailed documents such as certified mail to prove your IRS audit appeal was sent out in a timely basis.
IRS Audit Appeal – Filing a Formal Protest
When a formal protest is required, it should be sent within the time limit specified in the letter.
The following should be provided in the protest:
1. Taxpayer’s name and address, and a daytime telephone number.
2. A statement that taxpayer wants to appeal the IRS findings to the Appeals Office.
3. A copy of the letter proposed tax adjustment.
4. The tax periods or years involved.
5. A list of the changes that the taxpayer does not agree with, and reason for disagreement.
6. The facts supporting the taxpayer’s position on any issue that it does not agree with.
7. The law or authority, if any, on which the taxpayer is relying.
8.The taxpayer must sign the written protest, stating that it is true, under the penalties of perjury as follows:
“Under the penalties of perjury, I declare that I examined the facts stated in this protest, including any accompanying documents, and, to the best of my knowledge and belief, they are true, correct, and complete.”
If the taxpayer’s representative prepares and signs the protest for the taxpayer, he or she must substitute a declaration stating:
That he or she submitted the protest and accompanying documents and;
Whether he or she knows personally that the facts stated in the protest and accompanying documents are true and correct.
The IRS may settle your IRS audit appeal dispute by using a method called the hazards of litigation
Example – You may be asking yourself just what are the hazards of litigation.
The Appeals Officer first reviews and evaluates the facts in the case, and the applicable statutes and legal precedents.
After considering all of these aspects, he or she will evaluate the “hazards” the government (IRS) will face in pursuing the case into the appropriate court. If the Appeals Officer believes that the IRS may have a 30% chance of losing the case in trial, then she will entertain a settlement proposal whereby the taxpayer concedes 70% of the case.
Call us today for a free initial tax consultation and we will review your IRS audit appeal.
