Appealing an IRS audit is a right you have as a taxpayer
If you’ve received an IRS Audit Notice, you need to know your rights and when to seek help. Facing an IRS audit can feel daunting, but it's crucial to remember one fundamental right: you have the right to appeal the audit findings.
The IRS has a formal process in place to ensure you have an opportunity to disagree with their assessment and present your case for review.Here's a breakdown of how to navigate this process:
1. Understand Your Rights with the Taxpayer Bill of Rights: The IRS outlines your fundamental rights when dealing with them, including the right to appeal an IRS decision in an independent forum.
2. Initial Steps After Receiving the Audit Report (30-Day Letter):
● Review the Report Carefully: Understand the specific changes the IRS is proposing and the reasons behind them.
● Gather Your Documentation: Collect any additional documents or information that supports your original tax return or contradicts the IRS findings. This should be information that was available during the audit but perhaps wasn't presented or needs further clarification.
● Contact an Attorney. Before taking further action, consult with an attorney to advise you on the best course of action.
3. Choose Your Appeal Option:
You generally have a few options when appealing an audit. Our offices will help to determine whether your case is ripe for discussion with the auditor, settlement, or appeal of your case.
4. Filing a Formal Appeal (If Necessary):
If you can't resolve the issue informally, you'll need to file a formal appeal.
● Written Protest: Our offices have experience in writing formal protests on behalf of clients to the IRS. We include all of the necessary requirements to ensure your protest letter qualifies for formal appeal by working with you to navigate the complexities, gather documentation, and ensure clarity among the parties involved.
● Choosing the right Protest Form: Depending on the dispute dollar amount, different forms are required to file a formal appeal. Our firm can review your case and determine the necessary procedure to file the appeal.
● Deadline: Our offices can work on time-sensitive matters efficiently and with dedication, so you can rest assured that deadlines are observed.
5. The Appeals Process:
The next steps include an Independent Review of your case, where the IRS Office of Appeals is independent of the examination (audit) division reviews your case with a fresh and objective perspective. An Appeals Officer will be assigned to your case and will contact you to discuss the issues. We can present the case on your behalf: during this process, we explain why you disagree with the audit findings and present your supporting documentation while adhering to the facts and relevant tax law.
Did you already make it to this step on your own and receive an outcome you did not agree with? We can help with this, too. If you don't agree with the outcome of the appeals process, you generally have the option to take your case to U.S. Tax Court within 90 days of the date of the Statutory Notice of Deficiency (the 90-day letter) without having to pay the disputed tax first. Other judicial options are available, too.
Alternatively, our offices can help you request an Audit Reconsideration if you missed the appeal deadline or have new information that wasn't available during the audit.
Important Tips when you receive that Notice of Audit:
● Act Quickly and Know Your Limits: Review all IRS notices and make note of any deadlines. Tax Audits are complex matters: know your limits, and contact an attorney to determine the complexity of your case. Be sure to provide your attorney with enough time to review your case and file an appeal on your behalf within the specified deadlines.
● Records of Communication: Keep a clear record of all communication with the IRS.
● Be Organized: Gather and organize all relevant documents to support your case. Be sure you organize chronologically.
Appealing an audit can be a complex process, but understanding your rights and the steps involved is crucial for a fair resolution. Don't hesitate to contact us to help navigate your tax audit.