Need To Write An IRS Appeals Letter, Former IRS Agent, Here is How You Do That
Thank God for the Appeals Function of the IRS, they can fix the wrongs of many bad decisions by IRS Agents.
The Agents that work in appeals are much more seasoned and as a whole has a great deal of common sense and I find them much more lenient that regular agents that may new newer or green and do not understand the flexibility that they have.
The real question, should you hire someone or do it yourself?
Answer: Depends on the size of the case and the issues at hand.
Its always best to speak to a professional but regardless,this is how you approach the appeals letter.
Michael Sullivan Fresh Start Tax Expert, Former IRS Agent
As a former IRS agent teaching instructor with the Internal Revenue Service and now being in private practice is necessary to understand how important the IRS appeals function is in dealing with your IRS problem.
In almost all facets in dealing with the IRS in both collections, audits and all other functions the appeals branch serves as an important instrument to help taxpayers mistakes, oversight and to let others see a new understanding regarding your case.
Therefore is critical to understand how important the appeals letter is in dealing with the issue.
Lets stat with the Office of Appeals’ mission statement:
“To resolve tax controversies, without litigation, on a basis which is fair and impartial to both the Government and the taxpayer in a manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the Service.”
IRS Appeals proudly boasts independence as a core value & they really are.
Appeals offers a fresh, objective and impartial perspective and provides taxpayers a fair hearing that would otherwise often inefficiently clog up a court’s and taxpayer’s time and resources.
To take a case to Appeals, the taxpayer must protest in writing the IRS’s proposed action.
The written protest MUST contain the elements below:
The following in a written protest:
1. Your name, address and a daytime telephone number,
2. A statement that you want to appeal the IRS findings to the Office of Appeals,
3. A copy of the letter you received that shows the proposed change(s),
4. The tax period(s) or year(s) involved,
5. A list of each proposed item with which you disagree,
6. The reason(s) you disagree with each item,
7. The facts that support your position on each item,
8. The law or authority, if any, that supports your position on each item.
You must Add: The penalties of perjury statement as follows:
“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”
As well as your signature under the penalties of perjury statement
IRS practice tips to know and understand.
You should include as much information as you can in your appeals write up.
While most of you will not be a tax professionals in writing this, make sure it is concise, to the point so the appeals agent has a good understanding of why your appeal is being filed.
Let it contain as much factual information and documentation as possible.
Remember, documentation is king. You cannot over document.
Make sure your package is neat, orderly, and well put together.
If you can tab it and send it in a nice package all the better.
The appellate agent is going to stick to the facts of the case. You need to lay out every dispute possible and associated directly with what the IRS agent spelled out in your initial audit report.
The appellate hearing is a very informal hearing in which after that meeting you can still include more information.
Generally after speaking to the appellate officer agent he/she may give you some more time and information he/she may need to help your case and you can provide at the time requested.
If this is your first time doing this I would have third party look over it and review it.
To be perfectly honest with you, it’s best to have a tax professional put these this appeal together especially that it involves a large amount of money.
Call us today should you have any questions.
