The IRS inspects the tax returns it receives each year and often sends taxpayers bills because the taxpayer’s return was found to have mistakes. The IRS may indicate a taxpayer owes money because of a penalty associated with tax law or because the taxpayer simply figured his or her tax incorrectly.
The IRS will send the taxpayer a letter through the mail about the adjustment. According to the official site of the IRS on a page called Your Appeal Rights:
“The IRS will send you a report and/or letter that will explain the proposed adjustments or proposed or taken collection action. The correspondence also tells you of your right to request a conference with an Appeals or Settlement Officer, as well as how to make your request for a conference.”
Making an appeal on an IRS adjustment letter is entirely legal, and the organization even has a specific department dedicated to handling and processing appeals.
Working with the Independent Office of Appeals
The IRS houses an entire organization within its overall structure that deals specifically with appeals called the Independent Office of Appeals.
According to a write-up on the department by Investopedia:
“The IRS understands that many taxpayers will not agree with the findings of its auditors. Therefore, it has created a separate branch of service called the Office of Appeals, which consists of approximately 2,000 employees located nationwide.”
One of the interesting facets of the appeals process is that the officers who handle the appeals actually have a decent level of flexibility when it comes to handling appeals cases.
Working with a tax attorney or a tax accountant may be warranted if your taxes are particularly complex, or you’re worried about whether an IRS appeal might actually go the wrong way for you and result in a higher balance owed.
You must provide several documents, as well as general information, when you submit an appeal. Items you must send the IRS include items like your name, address, and daytime telephone number, as well as an official statement to the IRS with your request for an appeal.
When you submit your appeal, the amount the IRS says you owe will impact what type of request you’ll make. If you owe less than $2,500, you can make a simple request directly to the auditor. However, owing more than $2,500 or $25,000 requires additional forms and requests.
Invalid Reasons for an IRS Appeal
When you submit a request for an IRS appeal, you’ll work with an IRS employee who will consider your reasons for requesting an appeal. However, there are some limitations on the reasons you can give for wanting an adjustment to the amount you owe the IRS.
The Office of Appeals doesn’t consider moral, religious, or political reasons as valid for approving an appeal.
Additionally, one of the only disadvantages to submitting an appeal to the Office of Appeals is that increased scrutiny of your IRS bill might actually result in a higher balance owed if the IRS officer finds additional items that an auditor missed during the initial adjustment process.
Do You Need Help With an IRS Appeal?
Have you recently received an adjustment letter from the IRS? Do you disagree with the amount or want to know more about your rights to an appeal? Contact Suburban Legal Group for assistance with all matters relating to the Internal Revenue Service.
DISCLAIMER: All information on this website is provided for informational purposes only and is not intended to be construed as legal advice. Suburban Legal Group PC shall not be liable for any errors or inaccuracies contained herein, or any actions taken in reliance thereon.