IRS Tax Appeals

The IRS’ Office of Appeals provides an administrative process of challenging the findings and conclusions of a tax audit or other IRS actions. The Office of Appeals will review your case and provide an independent judgment, often softening the decision of the IRS. Dail & Toups can help you prepare and file an IRS tax appeal. We will ensure all legal tools are leveraged and all procedures are followed properly, increasing the likelihood of a successful appeal and reducing penalties imposed by the IRS. Contact us today to speak with a knowledgable attorney.


IRS employees and tax auditors can make mistake or misinterpret important facts

You can reasonably negotiate with the IRS auditor during the interview and defend your position. But that doesn’t guarantee their judgment will align with yours. If you receive a harsh IRS examination report, the next step is to contact the auditor’s manager and try to win an informal appeal. This may or may not help.

The fact of the matter is, both the IRS auditor and their manager are human beings. Whatever training they have, it cannot guarantee 100% accuracy in all of their cases.

This applies to every decision the agency makes – offers in compromises, installment agreements and forced collections.

If you believe the IRS has:

  • Missed to consider key facts about your business
  • Wrongly interpreted tax law as it applies to your case
  • Made calculation errors in determining the taxes and interest you owe
  • Taken unfair decisions based on personal opinion or an emotional reaction

…then you absolutely must pursue a tax appeal.

An appeals officer works differently than an IRS auditor. Where the auditor usually sees in black and white, the appeals officer recognizes many inbetweens that usually benefit the taxpayer.

A well-planned appeal can significantly reduce the financial burden of an IRS audit. IRS statistics show approved appeals reduce the final tax bill, including taxes, penalties, and interest, by 40% on average.


Even if you mostly agree if your examination report, it’s worth trying a tax appeal. In the majority of cases, appeals have positive results. Although officers can discover and raise new issues previously missed, this happens extremely rarely.

The purpose of the Office of Appeals is to resolve more cases in a satisfactory way for both the IRS and taxpayer and promote voluntary compliance. Their aim is to reduce the number of cases going to court, which aggravates the situation and increases the cost for both sides.

Usually, the Office of Appeals takes a more gentle stance and agrees to a reduction of the tax adjustments proposed by the IRS auditor. Furthermore, the appeals process adds months of delay to your taxes. The time can help you organize your finances, pay your taxes and solve the problem.

Despite the massive savings potential, less than 10% of all audited taxpayers file an appeal. Many are discouraged or intimidated by the IRS and forgo pursuing an appeal, thinking they may worsen the situation.

  • Filing late tax returns – civil penalty up to 25% of owed taxes.
  • Errors and discrepancies in tax returns – civil penalty up to 20% of owed taxes.
  • Filing a false tax return – felony conviction with up to 3 years in prison and a fine up to $100,000.
  • Criminal conviction of tax evasion and fraud – up to 5 years in prison and a fine up to $100,000.
  • Intentional tax evasion and fraud – civil penalty of 75% of owed taxes.
  • Failure to file your tax returns AT ALL – 1 year in prison and a fine of $25,000 for each year you didn’t file a tax return
  • Lying to an IRS employee – up to 3 years in prison and a fine up to $100,000.

If any of the above apply to you, contact a tax attorney immediatelly to verify and discuss the available options!

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