Should I Appeal the Results of an IRS Examination?
Deciding to appeal the outcome of an IRS examination can usually be beneficial for taxpayers if there is a basis for opposing the results. This process does not cost anything, although it is strongly recommended to retain the services of an attorney like our team here at Davis, Ermis & Roberts in Arlington and Grand Prairie, TX. Having the right team to support you can potentially lead to significant tax savings, which is a good investment for many taxpayers. You could head to Tax Court directly to resolve your problem. However, this is a more expensive process. Usually, after filing your IRS complaint, you can still go to Tax Court if you are not satisfied.
It’s important to keep in mind though, that you’ll need to have a legitimate reason for wanting to dispute your tax liability before deciding to file an appeal. If the primary problem is that you’re unable to pay off the tax, then there are other options available such as an Offer in Compromise, or an agreed-upon installment plan that would allow you to effectively settle the debt over time.
To help individuals in the Dallas-Fort Worth, TX area who are struggling with how to deal with letters from the IRS regarding overdue taxes, we’ve decided to spend some time addressing the topic of whether or not you should file an appeal. If you’ve undergone an examination by the IRS, and they’ve concluded that you owe a certain amount, but you’re not ready to pay them off, or don’t agree with the findings, then it may be time to request an appeal.
How to Request an Internal Appeal in the IRS
If your dispute involves a tax liability of $25,000 or less, you can start the appeal process by submitting a small case request letter. This type of informal letter is a measure used to notify the IRS that you want to have your case reviewed. Inside the letter, you will need to explain the various items you are disagreeing with and your reasons for disagreeing with each of them in detail.
If your case is larger than $25,000 then you will need to develop and submit a formal written protest. This protest will need to contain specific, detailed information that is more complete than what would be included in a small case request. Facts that support your position will also need to be included, along with any laws that could support your position. f the IRS is wrong about the facts of your case, you must be prepared to provide evidence that shows why you made the wrong decision. If you have important new information that your reviewers have not yet seen, your case can be returned to the reviewer for further review.
Usually, you have 30 days from the date of the examiner’s initial decision letter to submit an appeal. The only real risk when dealing with these types of cases is that the IRS Appeals Officer could potentially discover things that were overlooked during the original examination. If anything unfavorable is uncovered, this could result in a higher tax assessment. This is not common, but you should discuss your concerns with a member of our team before filing your complaint.
Submitting an appeal could allow you to achieve a total reversal on the IRS position, partial changes in your tax assessment or no changes. If you wish to pursue your case further after the appeal process has ended, you can file a claim after receiving a complaint in the Tax Court.
Let Davis, Ermis & Roberts in Arlington, TX Help You
If you’ve been examined by the IRS and it’s been determined that you owe money, but don’t agree with the amount, then don’t hesitate to contact our office so we can start helping you form an appeal right away. Because the process can take time, and there is a strict deadline on the process, the sooner you reach out to our offices, the stronger we can make your case. Our experienced and professional team is always ready to work with you to build a strong case for your appeal so you can make every possible effort to change the results of your examination.