Get the information and advice that you need about the tax appeals process, pitfalls to avoid and winning strategies from The Tax Lawyer, William D Hartsock.
Drawbacks of the Tax Appeal Process

What are Some Potential Drawbacks of the Tax Appeal Process?

In deciding whether to file a tax appeal written protest, a taxpayer should consider all the pros and cons of the tax appeal process. In a previous article, we described the benefits of filing a tax appeal. Here, we will discuss some of the potential drawbacks of the tax appeal process.

The Benefits of Filing a Tax Appeal

The Benefits of Filing a Tax Appeal

In order to properly file a tax appeal disagreeing with income, estate, or gift tax, the taxpayer must file with the Appeals Office. The appeal must contain a written protest stating why the IRS’s findings are incorrect (1). There are certain exceptions to the protest requirement, namely (1) in an office examination case, or (2) in a field examination or any other case if the amount of the proposed additional tax, proposed overpayment, or refund is $2,500 or less (2).

Tax Appeal Basics

Basics of Tax Appeals – History and Purpose

When you have a disagreement with the IRS over the amount of tax you owe, you may need to enter into negotiations with the Office of Appeals. The Office of Appeals is in charge of administrative dispute resolution with the IRS.

How To File an IRS Audit Findings Protest - Tax Appeals

How To File an IRS Audit Findings Protest - Tax Appeals

Sometimes at the conclusion of an audit, a taxpayer may be in disagreement with the audit findings. The court of appeals exists specifically for these occasions. However, in order to protest the determination of the IRS examiner at the conclusion of an IRS audit, the taxpayer must satisfy certain requirements.

Statute of Limitations on Filing Tax Refund Claims

Statute of Limitations on Filing Tax Refund Claims

A taxpayer who wishes to obtain a refund from the IRS for overpayment of taxes cannot do so unless the written refund claim is filed with the IRS within the proper time period. In general, this means that the refund claim must be filed within three years from the time that the tax return was initially filed, or two years from the time the tax was actually paid, whichever is later (1).

How To Claim A Refund From The IRS

How To Claim A Refund From The IRS

In some cases, a taxpayer may believe that he or she is entitled to a refund from the IRS. A claim for refund is a tax appeal request to the Internal Revenue Service for reimbursement of all or a portion of taxes paid in prior years due to a mistake, correction, or a credit or loss that can decrease an earlier year’s tax liability. Refunds may be granted when the taxpayer can show overpayment to the IRS (1).

Jurisdiction of the IRS Appeals Offices

Jurisdiction of the IRS Appeals Offices

Each region of the United States has specific IRS offices, and within each IRS region are special IRS Appeals Offices. As a general matter, the Tax Appeals offices have jurisdiction over income, estate, gift, employment, and certain excise taxes. The Appeals offices also have the power to assess additions to tax, including additional amounts, penalties, and interest. The jurisdiction of the Appeals office only applies once the taxpayer has filed a protest requesting consideration by Appeals.

after appeals you could face a tax litigation judge like this one

Tax Litigation After the Appeals Process

When facing off against the IRS for whatever reason, there is always a process for escalation wherein if your case is not resolved you can seek the attention of a higher authority. Typically a qualified and experienced tax attorney is recommended to guide you through the process, however you should be aware of what to expect along the way.

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