Taxpayer Appeal Rights: When and How to Appeal IRS Actions

Taxpayer Appeal Rights: When and How to Appeal IRS Actions

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You have the right to appeal any IRS action, determination, decision or ruling.

The method and manner of the appeal varies depending on the nature of the dispute.

IRS Appeals Rights Chart

The following chart shows the various IRS appeals processes and how and when to apply for them.

IRS ACTION

WHEN TO APPEAL

HOW TO APPEAL

Notice of Federal Tax Lien

Within 30 days of date of notice

File IRS Form 12153 Requesting Collection Due Process hearing

Final Notice of Intent to Levy

Within 30 days of date of notice

File IRS Form 12153

Notice of Deficiency

Within 30 days of date of date of notice or 90 days if filing a tax court petition

File formal written appeal or file United States’ Tax Court Petition

Trust Fund Recovery Penalty Letter

Within 60 days date of notice

File a formal written protest detailing why you disagree with the IRS’s assessment

CP 2000 – Adjustment Notice

Within 30 days of notice

Complete appropriate sections of CP 2000 and return to IRS

30 Day Non-Filer Letter

Within 30 days of date of letter

File formal written request disputing IRS findings that you failed to file a required tax return

Innocent Spouse Preliminary Determination Letter

Within 30 days of date of letter

File formal written protest in accordance with instructions contained in IRS letter

Installment Agreement Default Notice

Within 30 days of date of notice

File formal written protest in accordance with instructions

Tax Shelter Activity Notice

Within 30 days of date of notice

File formal written protest detailing why you disagree with the tax shelter adjustments

Request for Consideration of Additional Findings

Within 15 days of date of notice

File formal written protest detailing why you disagree with the IRS’s proposed adjustments

 

Appeals Officers and the Appeal Process

IRS appeals officers are very knowledgable in substantive tax law and IRS procedures.

But remember, the appeals process is useless if you fail to provide the information that is required to be included in the written protest or you don’t respond to the appeals officer’s reasonable requests for additional documentary information and citings of legal authority in support of your arguments.

Hazards of Litigation and Why It Helps to Have an Attorney

Unlike IRS collection agents and IRS auditors, appeals officers will consider what is known as “hazards of litigation” in determining whether and on what terms it will resolve an appeals case.

This is very important because the IRS knows that the next step after Appeals is the filing of a lawsuit in either Tax Court or United States’ District Court.

Having an attorney on board early in the process puts the IRS on notice that you are prepared to take the case to court.

About Peter Pappas

Peter is a tax attorney and certified public acccountant with over 20 years experience helping taxpayers resolve their IRS and state tax problems.

He has represented thousands of taxpayers who have been experiencing difficulty dealing with the Internal Revenue Service or State tax officials.

He is a member of the American Association of Attorney-Certified Public Accountants, the Florida Bar Association and The Florida Institute of Certified Public Accountants and is admitted to practice before the United States Tax Court, the United States Supreme Court, U.S. District Courts - Middle District of Florida