The Internal Revenue Service can propose tax adjustments or take collection action against you. If you disagree with the proposed or actual actions, you have the right to appeal the decision made by the IRS.
Taxpayers can dispute:
- Assessed tax penalties
- Interest accrued
- Rejection for an Offer in Compromise of a tax debt
- Results of tax audits
- Seizures of Assets (Notice of Intent to Levy)
- IRS tax liens
- IRS tax levies
If you find that you do not agree with the IRS decision, you have the right to appeal, and can ask for a hearing for your appeal. There is an administrative appeals process that works with the taxpayer to settle all tax disputes. This is often done to avoid court hearings and a formal trial. An Appeal is an independent review of a tax dispute where the Appeals unit tries to resolve a tax dispute fairly and impartial for both parties involved.
If you are facing a serious tax problem, the IRS will send you a report or letter that will explain any adjustments or actions that they have taken. This letter will also inform you of your right to request a conference with an Appeals or Settlement Officer. This letter will also explain how to make a request for a conference. If you have received a correspondence with the IRS explaining your right go to Appeals to dispute the IRS decision AND you do not agree and will not be signing the agreement, Appeals is the area you should be to resolve the issue. Besides examination adjustments, there are other things that can be appealed, such as; penalties, offers in compromise, IRS tax liens, levies on properties, and interest paid.
Appeals conferences are informal meetings. Though as a taxpayer you have the right to represent yourself, it would be a good idea to have an experienced IRS Tax Attorney who can provide legal representation before the IRS. For an Appeals conference, you will need to be prepared with records and documentations to prove your position. You must be able to justify why you are disagreeing with the IRS decision, and must show your rational with supporting documents.
If you are unable to reach an agreement with the Appeals or Settlement Officer, you may be able to appeal certain aspects through the courts. You may also choose not to appeal within the IRS and only seek action through the court system. In either case, you will want to have an experienced IRS Tax Attorney to represent you throughout the process. The tax code is a complex document, and even if you believe that you do not need representation, having an experienced tax attorney to lead your case can only benefit you.