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What Is The Audit Appeal Process?

  Sanjiv Gupta CPA  Published 
What Is The Audit Appeal Process?

After you are audited by the IRS, they will send you a letter stating their determination. You have a right to appeal their determination. Your reasons that you disagree with their determination needs to be within the laws of tax. Your appeal cannot be based on religious, moral or political grounds. Each year, the IRS Office of Appeals helps more than 100,000 people resolve tax disputes without having to go to Tax Court.

The Appeal Must Be Within The Time Frame            

If you’re going to appeal the decision of the IRS, you must appeal within the set time limit. Not appealing within that time limit can cause you to lose your appeal rights.

There are 2 appeal processes. The process you need to take depends on the amount of interest, tax, and penalties owed.

Appeal Process – Small Case (Under $25,000)             

If you are appealing less than $25,000 in proposed changes in interest, tax, and penalties for the tax period, you can appeal by:

  1. Filling out the Request for Appeals Review -Form 12203. You can print the form from or request it be mailed to you by calling (800) 829-3676.
  2. Include a written statement that requests an appeal of the decision. Briefly indicate what you don’t agree with the decision and also the reason why you are in disagreement.

Appeal Process – Formal (Over $25,000)

If you are appealing over $25,000 in proposed changes in interest, tax, and penalties, you will need to file a formal appeal. You must include the following information:

  • Your full name, street address, social security number or taxpayer identification number, and a telephone number they can reach you at during the day.
  • A written statement of what you are appealing to the IRS determination.
  • The tax return years you are disputing.
  • A list of what you don’t agree with including the reasons that you are in disagreement.
  • All of the facts that support your position.
  • The tax law that you are basing your appeal on.
  • Sign the written protest under a statement that the formal appeal is true under the penalties of perjury.

The IRS Appeals Conference

After your appeal is received by the IRS, you will be contacted to arrange an appeals conference that you must attend. You may bring an enrolled agent, CPA or tax attorney with you. The majority of issues are settled during the appeals conference.