Receiving an IRS audit notice can be a daunting experience, but it’s important to remember that you have rights and options. If you disagree with the IRS’s findings, you can appeal the audit. This guide will provide you with a step-by-step process on how to file an appeal and increase your chances of a successful outcome.
Understanding the IRS Audit Process
An IRS audit is a review of your tax return to ensure that you have reported your income and deductions accurately. The IRS may select your return for audit for various reasons, including:
- Mathematical errors
- Inconsistent information
- High deductions or credits
- Suspected fraud
Your Rights During an Audit
During an audit, you have the right to:
- Be represented by an attorney, certified public accountant (CPA), or enrolled agent
- Request a copy of the auditor’s report
- Provide evidence to support your position
- Appeal the audit findings
Preparing for an Appeal
If you disagree with the audit findings, you must file a formal protest within 30 days of receiving the audit report. Your protest should include:
- A statement that you are appealing the audit
- A copy of the audit report
- A list of the items you disagree with and the reasons for your disagreement
- Any supporting documentation
Filing an Appeal
There are two ways to file an appeal:
- Small Case Request: If the total amount of additional tax and penalties proposed by the IRS is $25,000 or less, you can file a Small Case Request using Form 12203.
- Formal Protest: For amounts over $25,000, you must file a formal protest. You can do this by mail or fax.
The Appeals Process
Once you have filed an appeal, it will be assigned to an Appeals Officer. The Appeals Officer will review your case and may request additional information or documentation. You will have the opportunity to meet with the Appeals Officer to present your case.
Negotiating a Settlement
The Appeals Officer may be willing to negotiate a settlement with you. This could involve reducing the amount of tax owed, removing penalties, or allowing you to pay the tax over time.
Going to Court
If you are unable to reach a settlement with the Appeals Officer, you can file a petition with the U.S. Tax Court. This is a formal legal proceeding where you will have the opportunity to present your case before a judge.
Tips for Increasing Your Chances of Success
- Be prepared: Gather all relevant documentation and prepare a clear and concise argument.
- Be professional: Dress appropriately and be respectful of the Appeals Officer.
- Be honest: Do not try to hide or misrepresent information.
- Be willing to compromise: The Appeals Officer may not agree with all of your arguments, so be prepared to negotiate.
- Consider getting professional help: An attorney, CPA, or enrolled agent can help you prepare your appeal and represent you during the process.
Appealing an IRS audit can be a complex and time-consuming process, but it is important to remember that you have rights and options. By following the steps outlined in this guide, you can increase your chances of a successful outcome.
How To Beat an IRS Audit!
FAQ
How much does it cost to fight an IRS audit?
How do I get out of an IRS audit?
How do you win an IRS audit?
Can you negotiate IRS audit?
How do I appeal an IRS audit?
Here are a few tips you can use to help you appeal an audit, should you receive a notice from the IRS. Taxpayers have the right to appeal their audits. You must file your official protest within 30 days of the date on the letter sent by the IRS. Prepare for your hearing, present your case, and negotiate a settlement with the appeals officer.
How do I dispute the IRS audit findings?
Many taxpayers disagree with the IRS audit findings, so filing for an appeal is the best solution. Fast-tracking settlements and filing an appeal notice within 30 days of receiving the audit letter or statutory notice of deficiency are ways to dispute the IRS tax bill.
What if I disagree with my tax audit results?
If you disagree with the results, appeal to the appropriate venue. Within 30 days, you can request an appeal with the IRS Office of Appeals. After 30 days, the IRS will send you a letter, called a Statutory Notice of Deficiency. This letter closes the tax audit and allows you to petition the U.S. Tax Court.
What happens during a tax audit?
During an audit, the IRS will ask you for information and documents that explain your position on your tax return. It’s important to provide the information just as the IRS requests it. If you have a licensed practitioner handling the audit, help your tax pro with the facts, and your tax pro will work with the IRS. 1.