If you’ve recently been audited by the IRS and you don’t agree with their findings, you are able to request an appeal. Usually, you have 30 days from the date you received the letter to appeal.
Depending on the size of your tax liabilities, you have a couple of different ways to appeal.
Smaller audits usually result in liabilities of $25,000 or less; the IRS refers to these as “small cases”. If you are appealing a small case, you will need to send a brief statement indicating the items with which you do not agree and request an appeals conference. You will also need to include Form 12203.
Larger cases consist of liabilities over $25,000. If you are appealing a large case, you will need to send a formal letter to the IRS Office of Appeals. Your letter must include the items with which you disagree, the detailed reason you disagree, and the facts that back up your reasoning. There is a list of other items that must be included in the letter; this post on the IRS website can provide all of them.
When You Cannot Request an Appeal
You cannot file an appeal based on reasons such as moral objections or religious issues.
You also can’t file an appeal simply because you cannot afford to pay the tax. If this is your problem, you can file an installment agreement with the IRS to break up your payments into more affordable amounts.
Talk to A Tax Attorney Before You File an Appeal
If you think the IRS made a mistake in your audit, you may want to go over it with a tax attorney. Remember, requesting an appeal does not automatically mean the IRS will return a favorable outcome, so you want to make absolutely certain it is worth your while before you do it.
Luckily, the experienced attorneys at Robert J. Fedor Esq., LLC have helped numerous people throughout the United States with their IRS issues. We can review your audit and the facts you are presenting to determine the best approach to take. Contact us today to set up a consultation.