If the IRS disagrees with any aspect of your tax return, you may be subjected 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 the result of your audit is unfavorable, you may find yourself 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 is your opportunity to disagree with the findings of an IRS auditor (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 handled by the IRS Office of Appeals, which means that you won’t typically 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 spend their time reviewing IRS audit appeal cases and making impartial decisions. They have more authority and experience than the typical IRS auditor, and 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 you disagree with the auditor’s findings, filing an IRS appeal may be the best choice.
If you plan to file an tax examination appeal, do not sign and return your copy of the tax auditor’s report. When your report is not received, the IRS will send you a letter that explains your right to appeal the results of the audit. 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, statement indicating that you want to appeal the results of the audit, the reason for your disagreement and any facts and tax law (or other secondary sources) that support your opinion. You must also include the tax periods involved in the audit, as well as your name, address and telephone number. If any tax authority supports your position, include that information in the protest as well. 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 My Tax Audit 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 the deadline is missed, generally 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. In most cases, appeals hearings take place at least 60 days after the written protest is submitted. 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 that you don’t leave anything out. When the day of the hearing arrives, present your arguments clearly and concisely. Avoid making disparaging remarks about the auditor or the IRS in general, and try not to appear angry or confrontational.
After you have presented your case, the appeals officer may ask for additional documentation. He or she may also let you know that more time will be required to make a decision.
Do I Need Professional Assistance?
The tax appeals audit process is complicated and a sound understanding of the IRS tax code (aka “the law”) is absolutely essential. In addition, how IRS appeals cases are settled often depends on the ability of the taxpayer or the taxpayer’s representative to effectively negotiate with the tax appeals officer. If you are facing a tax exam appeal, consulting with an IRS examination appeals professional, such as Samaritan Tax Relief, can be beneficial and can make the difference between a favorable vs. un-favorable outcome. Because we have extensive experience with tax audit appeals, we can help you collect evidence, prepare arguments and negotiate the best possible compromise with the appeals officer.
Samaritan Tax Relief IRS Tax Appeals Representation
One of your most important rights as a taxpayer is your right to have 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 Samaritan Tax Relief to assist you with your tax audit appeals, we will guide you through the process while advocating on your behalf and protecting your interests.
Samaritan Tax Relief is here to help you because when you’re dealing with a bad tax audit, the worst thing you can do is to do nothing at all 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 Help” button at the top of the page to take that first step.