The Role of IRS Appeals
The Office of Appeals resolves tax disputes without litigation. Appeals officers settle cases based on "hazards of litigation," evaluating strengths and weaknesses of both positions. This settlement authority makes Appeals one of the most valuable tools available. They handle audit disputes, collection matters, penalty assessments, OIC rejections, and TFRP cases.
How to Get to Appeals
For examination cases: receive a 30-day letter, file a written protest within 30 days including specific disagreements with factual and legal basis. For collection matters: CDP hearing requests, Collection Appeals Program requests, or appeals of rejected OICs/installment agreements.
The Appeals Conference
Conducted in person, by phone, or correspondence. The officer discusses issues, reviews evidence, and explores settlement. They cannot introduce new issues not raised at examination. They can consider new evidence on existing issues. Effective representation combines thorough legal analysis, organized documentation, and a realistic proposed resolution.
If Appeals Fails
The taxpayer can petition the Tax Court within 90 days of a statutory notice of deficiency. The Tax Court allows challenging the IRS before paying the disputed tax, making it the preferred forum for most taxpayers.
Appeals is where cases that seem hopeless at examination often find resolution. The litigation-hazard settlement authority gives officers flexibility that examiners simply do not have.