Take Back the Power from the IRS: How to Master the Art of the IRS Office of Appeals

Have you ever felt that the IRS treated you unfairly?

Have you ever felt the IRS has too much power when it's making decisions?

If so, there’s a path to justice that doesn’t involve courtrooms or exorbitant legal fees - it’s the IRS Independent Office of Appeals.?

By appealing to an impartial third party, the appeals process is your strategic tool to challenge and potentially overturn IRS decisions.?

Let’s delve into why understanding and navigating this process is crucial for taxpayers in a dispute with the IRS.

Why the IRS Appeals Process is a Game Changer

The IRS Appeals Process is a critical tool that you need to understand if you have IRS tax debt. It is designed to ensure fairness and impartiality in tax disputes. Importantly, the appeals unit is not a division of the IRS.

Read that again.

The appeals office is a totally separate entity from the IRS. They are not there so the IRS can pretend you’re getting a fair shake.

They actually ARE impartial.

Appeals offers a neutral ground where taxpayers can contest IRS decisions without the cost and formality of going to court.

In essence, it democratizes tax disputes by allowing taxpayers to challenge the IRS’s might with reasoned arguments and evidence.?

Appeals levels the playing field against the big, bad bully, the IRS. It’s a platform where your voice can be heard and genuinely considered.?

So pay attention.

It’s essential to your success when battling the IRS

Unpacking the Appeals Process

Here, I talk about appeals by discussing 4 different aspects:

1. How to Initiate an Appeal
2. Preparing for Your Appeals Conference
3. Possible Outcomes
4. Handling Delays Effectively

Understanding these segments deeply will empower you to navigate the process strategically and with confidence.

1. Initiating an Appeal

The IRS Appeals process starts when you decide you’re not taking what the IRS says lying down!

To initiate an appeal, you must submit a written request to the IRS office that issued the decision, detailing your disagreement and citing relevant tax laws or errors in the IRS's decision-making.

The request must adhere to guidelines provided in IRS Publication 5, which offers a roadmap for preparing a formal written protest.

The office that issued the decision will take another crack at resolving the issue in a way that you feel comfortable with. If you cannot come to an agreement, the office will forward your case to the Appeals Office, which begins a formal review process.

2. Preparing for Your Appeals Conference

Once your appeal reaches the Appeals Office, get prepared. You may conduct the hearing over the phone, via video, or in person. Here, you'll discuss the facts, present your case, and argue the law as it applies.?

Your ability to persuasively argue your case and refute the IRS's position while supporting it with strong evidence and legal precedent will determine whether you succeed in appeals so don’t try and “wing it” using emotion or what you would consider common sense.

It won’t work.

3. Possible Outcomes

The outcomes of the appeals process can be divided into three types:

• IRS Wins: The evidence might still favor the IRS, but understanding why can help refine your strategies in future disputes.
• Taxpayer's Wins: If the law and facts are on your side, the Appeals officer could recommend reversing the IRS’s decision.
• Compromise: Often, when the outcome is not black and white, negotiating a compromise might be your best strategy. You agree to a resolution where you get certain things that you want, and the IRS gets things that they want…or somewhere in the middle.

4. What to Do if Your Appeal is Delayed

If more than 120 days have passed since your appeal request and you haven’t received a decision, follow up with the IRS office handling your case.

Delays happen for various reasons, including the complexity of your case or administrative backlogs (mostly administrative backlogs), but staying proactive is key to keeping your appeal on track.

In other words, the more you bother them, the better the chance that your appeal gets heard.

TL;DR - Too Long Didnt’ Read

The IRS Independent Office of Appeals is a powerful tool you can use to challenge IRS decisions. Understanding how to file an appeal, prepare effectively, anticipate potential outcomes, and manage delays allows you to navigate the appeals process with greater certainty and effectiveness.?

You finally have the opportunity to tilt the balance of power in your favor, or at least even it out!

Call to Action

Taking advantage of appeals ensures you always have a fighting chance against unfair IRS decisions.

Have you used appeals before?

Were they able to help?

Let us know about your experience!

Tax Professionals: Have you ever taken advantage of appeals for your clients?

What was the outcome?

When you think back, were there times when you could have used appeals for your client’s benefit?