There are many instances where taxpayers may feel the need to request an IRS appeal to resolve any tax disputes with the IRS. The IRS may include wrong facts on a notice, deny an offer in compromise request, or take inappropriate collection action against a taxpayer. Whatever the reason, if a taxpayer disagrees with the decision, they can reach out to the IRS office of appeals by filing a written protest and mailing it to the address mentioned on the notice explaining their appeal rights. Before contacting the IRS office of appeals, a taxpayer can boost chances of getting a favorable outcome by seeking IRS tax help from an experienced tax attorney, certified public accountant, or an enrolled agent who is authorized to practice before the IRS. Continuing on the topic, in this blog post, we discuss all you need to know about requesting an IRS appeal. Read on!
Filing a Protest
Before the IRS Examination or Collection officer who initiated a collection action sends a taxpayer’s case to appeals, they will attempt to resolve the tax issues at their level. If they fail to do so, they will forward it to Appeals for consideration. Taxpayers must file a formal written protest to request a conference with the Appeals office unless they qualify under the Small Case Request procedure. They must send the formal written protest within 30 days, which is the time limit according to the taxpayer’s rights to appeal.
Filing a Small Case Request
Taxpayers may submit an IRS appeal letter for Small Case Request if the entire amount of tax and the related penalty is $25,000 or less. If they are appealing the denial of an offer in compromise, the entire amount for each tax period must include total unpaid taxes, interests, and penalty. Employee plans, S corporation partnerships, and exempt organizations are not eligible for Small Case Requests.
Appealing a Collection Decision
Some of the appeal procedures that the taxpayers may use during IRS appeals are:
1. Collection Appeals Program (CAP)
Taxpayers may go through the CAP process if the issue involves collection actions to do with a lien, seizure, levy, and rejection, termination, and modification of an Installment Agreement. They can call the IRS appeals phone number and explain their reason for disagreement, and be prepared to propose a solution within IRS appeals settlement guidelines.
2. Collection Due Process (CDP)
Taxpayers are entitled to a Collection Due Process (CDP) if the IRS sends them a notice that states they have the right to request a CDP hearing including Notice of Federal Tax Lien Filing along with their Right to a Hearing Under IRC 6320, Final Notice of Intent to Levy, Notice of Jeopardy Levy and Right of Appeal, Notice of Levy on taxpayer’s State Tax Refund, and Post Levy Collection Due Process (CDP) Notice.
3. Offer in Compromise (OIC)
An Offer in Compromise (OIC) refers to an agreement between the government and a taxpayer settling a tax liability for less than what is owed. If a taxpayer receives a letter notifying them that their offer has been rejected, they can appeal the IRS decision within 30 days from the date on the letter.
4. Trust Fund Recovery Penalty (TFRP)
Taxpayers can apply for Trust fund penalty if they are responsible for collecting or withholding, accounting for or, and depositing or paying specified taxes. Responsible taxpayers can be owners of corporations, officers, partners within organizations, or employees of any firm.
Related Blog: Filing an IRS Offer in Compromise? Read This First!
You can learn more about IRS appeals and discuss your options by consulting with experienced Dallas tax attorneys at the Law Offices of Nick Nemeth. To discuss your case and learn how we can help, call 972-627-4580 or fill our contact form for a free consultation. We have a team of highly knowledgeable and experienced Fort Worth IRS tax law professionals who can help you overcome any IRS tax problems.