Appealing an Additional Tax Assessment Due to an IRS Audit

All tax audits are not performed at a work desk. Many audits are conducted entirely through the mail. Regardless of how informal the audit might be, an additional tax assessment usually becomes a binding obligation. Tax filers who disagree with the outcome of a tax audit may request an administrative appeal to address the dispute rather than taking the issue directly to court.

The U.S. Tax Court routinely hears a wide variety of cases surrounding tax law, many of which result from audit disputes. As an alternative to court proceedings, the Office of Appeals within the IRS hears audit appeals in a more informal manner. The first step in appealing an audit decision through the Office of Appeals is to respond to the initial letter received from the IRS after the completion of your audit.

The 30-day letter

A few weeks after an audit is complete, you will receive a letter summarizing the proposed changes to your original tax return. You have 30 days from the date of the letter to either accept the changes or appeal the audit result. If you decide to appeal the proposed changes, a written request must be sent to the IRS at the address included in the letter.

Written appeal request

The information required on an appeal request depends on the amount owed and the nature of the entity that was audited. If the amount of additional tax and penalties is over $25,000, your written request should cite the legal basis for your position and explain the facts that support your reasoning. Along with your legal argument, include your signature alongside a notation that the request is being signed under penalties of perjury.

A request for an appeal of $25,000 or less is generally referred to as a small case request. Entities and individuals eligible for a small case request should indicate which proposed changes are disputed and the reason for the disagreement. The following four entity types are not eligible to submit a small case request, regardless of the size of the audit assessment.

  • Tax-exempt organizations
  • S corporations
  • Partnerships
  • Employee retirement plans

The 90-day letter

If your request for appeal is denied, you then have 90 days from the date of the denial letter to file a case with the U.S. Tax Court. The so-called 90-day letter is also sent out if an appeal request is granted but the subsequent appeal process is not successful.

Although you can represent yourself, practice before the IRS is limited to attorneys, CPAs, and enrolled agents. Contact a tax preparation service for assistance in appealing a tax audit.

About Me

Hiring An Attorney For Commercial Bankruptcy

Hi, my name is Mackenzie Kohler and when my business partner and I were having financial difficulties, we decided that we would file commercial bankruptcy. Since a partnership bankruptcy can be very complicated, we hired an attorney to help us with all the legal aspects of this process. Our attorney made sure that everything was handled properly and this put my business partner and I at ease. If you're considering filing commercial bankruptcy, read my blog to learn what to expect during the process and how an attorney can help you. I hope this blog gives you all the information you need about commercial bankruptcy and hiring an attorney.

Search

Categories

Archive

Latest Posts

21 February 2017
When it is necessary for you to file for a divorce against your partner, you can easily feel overwhelmed by the emotional and legal aspects involved w

1 February 2017
The right pieces of evidence can help you win your car accident case, so it's important that you work from the beginning to preserve any possible evid

21 December 2016
If your partner is abusing you, don't just get a quiet divorce without bringing up the issue of domestic violence. There are several ways in which bri