IRS Appeals
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If you disagree with the results of an IRS audit or other tax determination, you have the right to appeal. The IRS Independent Office of Appeals provides taxpayers an opportunity to resolve disputes without going to court. According to the National Taxpayer Advocate, over 99% of Tax Court cases are resolved without a ruling on the merits—meaning administrative disputes really work.
What is IRS Appeals?
The IRS Independent Office of Appeals is a separate division from the IRS examination function. Appeals officers are trained to take a fresh look at your case and consider the ‘hazards of litigation’—meaning the likelihood that the IRS would win or lose if the case went to court. This creates opportunities for resolution that may not have been available during the audit.
The Two-Step Administrative Process
First, you can request a conference with the manager of the IRS agent who made your determination. These meetings give you an informal opportunity to present your case to a second set of eyes. While managers typically support their examiners unless the report contains clear mistakes, manager conferences can sometimes resolve straightforward factual disputes or clear misapplications of tax law.
If a manager conference doesn’t resolve your dispute, the IRS will issue an ‘unagreed report’ along with a ‘thirty-day letter.’ This allows you to request an appeals conference with the IRS Independent Office of Appeals. Appeals officers have more flexibility than examiners to consider settlement when taking another look at your case.
Four Big Reasons to Fight Back
Error Correction: The IRS handles millions of returns with limited human oversight. Mistakes happen—computational errors, payments applied to wrong years, procedural failures, or actions outside the statute of limitations. Challenging notices often uncovers these issues.
Procedural Protections: Requesting an appeals conference puts most collection activities on hold while your case is reviewed. The IRS can’t seize your wages or assets until the case is resolved.
Penalty Abatement Opportunities: Many IRS penalties can be reduced or eliminated through first-time abatement, reasonable cause abatement, or statutory exceptions.
Negotiation Room: Even if you end up with a tax bill, the appeals process gives you time to gather funds and negotiate more favorable payment terms.
If you have received an unfavorable IRS determination and want to explore your appeal options, contact Boss Tax Law today.