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Debt collection actions by the Internal Revenue Service (IRS) can result in serious financial consequences for taxpayers. Unfortunately, in some instances, these actions are inappropriate or based on erroneous audit findings. However, some taxpayers fail to exercise their rights to appeal, leaving the flaw unresolved.
You can file an appeal with the Office of Appeals if you disagree with the collection action or tax bill being taken against you. You must comply with the strict statutory requirements and present a solid case to get a favorable outcome. BC Tax helps taxpayers throughout the country file IRS appeals to prevent unfair collection action and alleviate their tax debt.
What Is a Tax Appeal?
Tax appeal is the process of challenging the findings and conclusions of tax audits or other actions by the IRS. It’s a common way to resolve disagreements with the IRS about your tax returns. The IRS has an independent Office of Appeals that reviews tax disputes without going to court. The law requires the agency to deliver fair and impartial judgments, which may affirm or reverse the decisions. This process is crucial because although the IRS employees and tax auditors are professionals, there are instances where they make mistakes. The appeals system enables you to contest decisions or actions and protect your interests.
During the IRS audit interview, you can reasonably negotiate with the auditor and defend your position. However, in some cases, auditors arrive at different conclusions, resulting in harsh IRS examination reports. You may contact the auditor’s manager to win an informal appeal, but there is no guarantee of success.
You can request a conference or hearing with the Office of Appeals if you:
- Disagree with the IRS’s decision about your return.
- Received a letter from the IRS explaining you have the right to appeal their decision.
- Are not signing an IRS agreement form.
The reason for disagreeing with the decision could be based on several factors. For example, you may contest a conclusion or an action if the tax agent or agency does any of the following:
- Fails to consider vital facts.
- Misinterprets a tax law.
- Makes a wrong calculation in determining your taxes.
- Makes unfair decisions based on personal biases or emotional reactions.
The office of tax appeals is separate and independent from the IRS audit or collection unit and is mandated to make objective determinations. There is no requirement to request an appeal before proceeding to court, but the appeal process is fast, less formal, less expensive and relatively straightforward. Moreover, you still have a right to institute civil action if you disagree with their decision.
Planning your appeal properly and submitting the relevant documents, including an official IRS dispute form, is vital to increase your chances of success. Hiring a tax professional for tailored and effective representation. Winning an appeal requires tact and skill, which professionals have obtained through training and years of experience.
