IRS Tax Appeals

More often than not, taxpayers and the IRS will disagree. In order to resolve more cases without involving the courts, the IRS has created the Office of Appeals.

The Office of Appeals provides an administrative process of challenging the findings and conclusions of a tax audit or other IRS actions. You can appeal financial penalties or tax adjustments placed by an IRS auditor. The Office of Appeals will review your case and provide an independent judgment, often softening the decision of the IRS.

Dail & Toups is a specialized tax law firm. We 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.

The IRS is not perfect either

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.

Why should you use the appeals process

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.

Here are some examples of appeals you can make:

The conclusions and decisions of an IRS auditor, following an audit of your taxes and business records.

The interpretation of the laws and facts regarding your case.

The legitimacy and size of financial penalties and tax adjustments imposed by the IRS.

The decisions of the IRS to deny your offers in compromise installment plan.

The decisions of the IRS to attach a lien to your name, which will impact your ability to use financial services.

Forced collections on your financial accounts and property to cover your tax debt.

Invoking the Office of Appeals is a straightforward process, but the IRS will require you to exhaust all lower level options, before letting you appeal formally. There is some red tape involved and appeals are time sensitive. Taking the wrong action at the wrong time can lose you the opportunity to make a proper appeal.

We recommend consulting a tax professional before pursuing an appeal. A tax lawyer will investigate your case and identify any drawbacks of using the appeals procedure, making sure you don’t make the problem worse.

You don’t have to face the IRS alone!

Appealing to the IRS is scary only if you don’t know what you’re doing.

At Daily & Toups, we’ve dealt with hundreds of appeal cases. With more than 50 years of experience, we’re more than prepared to handle your defense and challenge the IRS.

We know the internal workings of the Office of Appeals and can guide you through the process from start to end.

We will identify all potential savings upon reviewing your case and mount an efficient appeals campaign, making use of all available legal leverage.

Contact us for a free consultation! Let’s have a chat about your taxes and see what options you have.

Our mission is to secure the best outcome for our clients. Where we can’t stop the IRS from imposing a penalty, we work to reduce the charges as much as possible.

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