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How to File an Appeal with the IRS

Yes, you can start a dialogue with the IRS if you feel that its findings are incorrect.

The very thought of having to communicate with the Internal Revenue Service about something you believe is an agency error is intimidating to most people. The tax code is massive and often difficult to decipher, and everyone gets at least a little nervous they consider engaging the governing agency.

How to File an Appeal with the IRS image 1But there are numerous reasons why you might dispute something that the IRS has communicated to you. You might think, for example, that the law was not interpreted correctly, so a decision may not have been the right one. Or you don’t believe that a collections effort should have been initiated against you, or you feel that your offer in compromise should have been accepted.

There are three things you need to do first:

  • Double- and triple-check any IRS publications that you consulted to make sure you read them correctly, as well as to be sure that you’re very clear on what your position is and why.
  • Decide whether you are going to go it alone or whether you would like a CPA or attorney to represent you.
  • Prepare to file a written protest to request an Appeals conference.

Note: You may be able to bypass this formal document if you qualify for something like the Small Case Request. Check with us to see which procedure will be appropriate in your case.

Even if you choose to let us guide you through this complex process, you can start gathering information for the written protest. The IRS expects it to contain a great deal of detail, including:

  • How to File an Appeal with the IRS image 2Your contact information,
  • A clear statement indicating that you intend to appeal to the Office of Appeals because of changes that the agency suggested,
  • The letter that the IRS sent you that outlined the changes it believed needed to be made,
  • The pertinent tax period(s) or year(s),
  • A list of the items with which you take exception,
  • Your rationale for disagreeing, including supporting facts,
  • Your signature, of course, and
  • A statement and signature from any professional who helped you prepare the protest document.

Talk to us if you’re protesting a lien, levy, seizure, or denial or termination of an installment agreement. These disagreements require a different procedure.

Be Proactive

You may assume that the IRS is always right and therefore may be uncomfortable second-guessing the changes the agency made to your tax return. But you have a perfect right to protest – as long as you’re certain of the rationale for your dispute.

The best way to avoid having to go through this process, of course, is to be exceptionally careful about your tax return in the first place. This requires planning throughout the year and a thorough understanding of all of the information you supply to the IRS. If your return contains more than some simple income and deductions, we’d be happy to work with you from start to finish.