top of page

What if I don’t agree with the IRS: IRS Rights

One day you receive a notice from the IRS. The notice states that you have unreported stock trades for the previous tax year. The notice adds the selling price of the stock as income, which increases the amount of taxes owed. Now the IRS says that you owe a large sum of money. Suddenly, you feel lightheaded. Once you regain your composure, you remember that your financial advisor said that you lost money in stocks that year. “This isn’t right,” you think. You then notice a paragraph telling you that you have 30 days to appeal.

The IRS has an administrative appeals process by which it works with taxpayers to settle disputes. The IRS Office of Appeals (IRS Appeals) role is to independently review a tax dispute. In doing this, IRS Appeals usually considers the position of both the taxpayer and the IRS. It strives to resolve tax disputes in a fair and impartial manner to avoid court proceedings.

The first step to the appeals process is receiving a notice from the IRS. The notice usually contains proposed tax adjustments or forced collection activities. By law, the notice should also inform you of your appeal rights and how to request an appeal. Moreover, just about every action taken by the IRS can be appealed. Those actions include but are not limited to; assessment of penalties and interest, liens, levies, and offers in compromise denials.

The appeals conferences are informal and are usually held by phone. However, if you request an appeal, you must be prepared to support your position with records, documentation, and the law. You may choose to represent yourself or hire a tax professional to represent you in an IRS appeal. Please keep in mind that if the outcome of the appeal is unfavorable to your position, you may still have the right to petition the courts.

If you received a notice from the IRS, imme

diately contact a tax professional. Your time to file an appeal is limited. For more information about the appeals process, please contact our office.

bottom of page