How to File a Tax Appeal
The Internal Revenue Service, or IRS, has instituted an appeals process that you can take advantage of if you disagree with their assessment of your tax liability. The IRS describes your appeal rights in detail on their website. Yo may start with an informal conference and proceed to a formal appeal if you are not satisfied. Once you exhaust your appeal rights within the IRS, you can take your appeal to the U.S. federal court with jurisdiction over your case.
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Instructions
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Examine your IRS tax notification to discover the basis of the contested amounts. Gather documentary evidence to dispute it. You may contest an error of fact, such as an IRS estimate of the amount of your deductible expenditures, or an error of law, such as an inappropriate interpretation of tax law.
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Request a conference with the IRS official that issued the findings you disagree with. Present your case informally, either in person or over the telephone. The appropriate IRS official should be listed in your tax notification.
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Prepare a formal written protest if the result of the conference is unsatisfactory. Your protest should include your name, address and telephone number; a statement that you are appealing the IRS findings that you disagree with; a copy of the IRS notification; the tax period for which the findings were issued; a list of the IRS findings that you disagree with and the reasons you disagree; and a listing of facts and laws that support your position.
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Add a statement to your protest guaranteeing the truth of the facts contained in your protest under penalty of perjury, and sign it. Send your protest to the address listed in the IRS notification. The facts you include must be true to the best of your knowledge.
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Appear at the hearing and present your case on the date the IRS notifies you the hearing is to be held. It will be held at a local IRS office, and you may bring an attorney to represent you.
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if you lose your appeal with the IRS, file a lawsuit in the U.S. Tax Court, the U.S. Court of Federal Claims or the U.S. District Court with jurisdiction over your residence. Which court has jurisdiction over your case depends on the details of your claim. Ask the court to rule in your favor, and seek a refund of your administrative and legal expenses.
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Tips & Warnings
If you dispute an IRS collection action rather than its assessment of your underlying tax liability, file your appeal under the IRS Collection Due Process program or the Collection Appeals Program.
If you file a frivolous appeal with the U.S. Tax Court for the purpose of delay, you can be fined up to $25,000.
References
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