Appeals Requests

Receiving a proposed IRS tax deficiency, a denied reasonable cause penalty abatement request, or a rejection of requested innocent spouse relief can be stressful and overwhelming. It seems unfair that the IRS can make decisions unilaterally, often without a real chance for meaningful interaction with someone who has reviewed the facts. Luckily, the IRS Office of Appeals can be an attractive alternative to administrative or civil lawsuits. Appeals provides taxpayers with an avenue to have their case receive one-on-one attention, have all the issues heard, and potentially resolve the dispute with a settlement that is agreeable to both sides. Having a skilled representative in the room often allows taxpayers to maximize results in this venue while foregoing the time and costs of lengthy litigation.

What Is the IRS Office of Appeals?

The IRS Office of Appeals is a neutral, independent branch within the IRS that is tasked with reviewing disputes from an objective standpoint. The Appeals officers are not part of IRS Exam, and it is their job to review a case file and review the hazards of litigation that both the taxpayer and the IRS would face if the case proceeded to court. This analysis is based on both the factual and legal strength of each side’s position. Appeals officers are afforded the ability to settle cases in a fair and equitable manner. This is different from the exam function of the IRS, which is often black and white. Not every dispute between a taxpayer and the IRS is afforded Appeals rights, but, for those that are, this venue can often yield a satisfactory outcome.

When Should You Consider Filing an Appeal?

The following are examples of when Appeals requests should strategically be considered:

• You disagree with the audit findings and want to avoid tax litigation and settle fairly
• The IRS disallowed a penalty abatement request
• The IRS denied a request for Innocent Spouse relief
• The IRS sent a Final Notice of Intent to Levy via Certified Mail
• The IRS filed a Notice of Federal Tax Lien
• The IRS proposed a Trust Fund Recovery Penalty

An Appeal is not automatic or always strategic, as this will often freeze certain IRS statutory deadlines. It is imperative to consult with a tax attorney to determine if this route is the most appropriate for the individual situation.

How the Appeals Process Works

In order to get a review from the Independent Office of Appeals, a taxpayer must first receive a notice from the IRS stating that Appeals rights are afforded; from there:

• The Taxpayer will file a formal Appeals request, which must contain certain strict information to have the case accepted for review. When written by a tax attorney, these protests are strongly written, persuasive pieces on behalf of the taxpayer.
• The Office of Appeals will assign an Appeals Officer to the case, and a first conference letter will be generated setting the date for the initial Appeals hearing, to be conducted either in person or virtually.
• The conference will allow the Appeals officer to get the taxpayers version of the legal and factual information in the case, as well as allow him or her to gauge the taxpayer’s credibility. It is critical that the attorney has prepared the client for this meeting to maximize the impact the testimony has on the Appeals Officer.
• Negotiations continue between the taxpayer and the Appeals Officer, with additional supporting information provided as requested.
• The Appeals Officer will provide an initial settlement offer, sometimes these are best and final offers, but with appropriate response, they can improve. The more an attorney can show how the facts fit into established case law, the more likely the offers are stronger for the taxpayer.
• If no fair resolution can be reached with Appeals, there is going to be either the route to continue in US Tax Court or United States Courts of Appeals. A Tax Attorney will help to evaluate best options when presented with Appeals final offer.

Why Choose Michael Raff for IRS Appeals?

• Extensive experience in practice before IRS Appeals, developing working relationships with several Appeals Officers in the Chicago area, and garnering respect from IRS agents nationwide.
• In-depth knowledge of IRS procedures and strategies, maximizing outcomes for clients at this level of the IRS.
• Ability to assess when an appeal is appropriate or when heading straight towards administrative or civil litigation will expedite client results based on personalized review of each clients case file.
• Award-winning track record of successful resolutions for clients facing civil tax disputes.

Considerations Before Filing an Appeal

As described above, Appeals requests are powerful tools. However, they are not for every situation. They can add time and expense to cases that do not require that level of detail. They can unnecessarily cause certain statutes to freeze, keeping the IRS in a taxpayers life for longer than necessary. It is imperative to discuss all Appeals rights and options with experienced counsel who has seen the pros and cons of making the request first hand.