Are you in the middle of a disagreement with the IRS? One of the guaranteed rights for all taxpayers is the right to appeal. If you disagree with the IRS about the amount of your tax liability or proposed collection actions, you have the right to ask the IRS Appeals Office to review your case.
During their contact with taxpayers, IRS employees must explain and protect these taxpayer rights, including the right to appeal. The IRS appeals system is for people who disagree with the results of examining their tax returns or other adjustments to their tax liability. In addition to examinations, you can appeal many other things, including:
- Collection actions such as liens, levies, seizures, installment agreement terminations, and rejected offers-in-compromise,
- Penalties and interest, and
- Employment tax adjustments and the trust fund recovery penalty.
Internal IRS Appeal conferences are informal meetings. The local Appeals Office, independent of the IRS office, can sometimes resolve an appeal by telephone or through correspondence.
The IRS also offers an option called Fast Track Mediation, during which an appeals or settlement officer attempts to help you and the IRS reach a mutually satisfactory solution. Most cases not docketed in court qualify for Fast Track Mediation. You may request Fast Track Mediation after an audit or collection determination before requesting a normal appeal hearing. Fast Track Mediation is meant to promote the early resolution of a dispute. It doesn’t eliminate or replace existing dispute resolution options, including your opportunity to request a conference with a manager or a hearing before Appeals. You may withdraw from the mediation process at any time.
When attending an informal meeting or pursuing mediation, you may represent yourself or be represented by an attorney, certified public accountant, or individual enrolled to practice before the IRS.
If you and the IRS appeals officer cannot reach an agreement or prefer not to appeal within the IRS, you may take your disagreement to federal court in most cases. Usually, it is worth having a go at mediation before committing to an expensive and time-consuming court process.
If you are stuck with a back tax or IRS collections issue, please feel free to reach out. Centerbridge Law Group has attorneys available to assist in these matters.
If you want to handle it yourself, you may want to pick up What to Do When the IRS is After You by Richard Schickel. This book, written by three retired IRS employees and other insiders, provides a valuable look at how to work through an IRS collections action.
Another critical resource is Treasury Department Circular No. 230, the handbook used by professionals and agents alike when practicing before the IRS. It’s a must-read.