Winning Your Appeals Conference: Preparing Evidence and Presentation Tips

Why the appeals conference matters

An appeals conference is often the single best opportunity to settle a tax dispute before escalating to litigation. The Office of Appeals operates independently from the audit and collection functions of the IRS and focuses on resolving disputes fairly and efficiently. A strong, well-documented presentation can preserve deductions, eliminate penalties, or significantly lower an assessed tax balance.

(For official guidance on preparing a written protest and what the Appeals office expects, see IRS Publication 5, “Your Appeal Rights and How To Prepare a Protest.”)

How the process typically works

• Notice and filing: After an audit or collection action you may receive a notice that includes appeal rights (e.g., a 90‑day letter/statutory notice of deficiency or other IRS notices). Follow the instructions on the notice and submit a timely request for review or written protest per IRS guidance.
• Intake and scheduling: The Appeals office will acknowledge your request and schedule a conference (in-person, telephonic, or virtual).
• Pre-conference exchange: Appeals officers usually exchange position papers and documents in advance. This is your chance to submit the exhibits you want the officer to review.
• Conference: You (or your representative) present facts, evidence, and legal argument. The appeals officer will ask questions and may negotiate settlement options.
• Decision/closing: Appeals issues a proposed resolution; if you accept, the case is closed. If not, you retain other rights (e.g., petition the U.S. Tax Court for a statutory notice of deficiency).

Timeline: Many cases resolve in a few months, but complex matters can take longer. Expect at least several weeks for scheduling and review.

What evidence matters — checklist and hierarchy

Not all documents are equal. Prioritize evidence that directly undermines the IRS position or proves a key fact.

High-priority items:

• Primary records: tax returns, signed Forms W-2/1099, bank statements, general ledgers, invoices, and receipts that directly support your reported items.
• Contemporaneous records: calendars, mileage logs, diaries, contracts, or engagement letters showing when and how transactions occurred.
• Third-party corroboration: payor/recipient statements, customer receipts, canceled checks, or vendor confirmations.
• Supporting correspondence: prior letters to/from the IRS, Notices, IRS transcripts (Account Transcript, Wage & Income Transcript) to show what the IRS relied on.
• Legal and regulatory citations: relevant Code sections, Treasury Regulations, or published guidance that support your position.

Lower-priority but useful:

• Affidavits or witness statements (useful when primary documents are missing, but weaker than contemporaneous records).
• Expert reports (for valuation or specialized technical issues).

Checklist for exhibits to bring or submit in advance:

1. Exhibit cover sheet with a short statement of the contested issue.
2. Table of contents and an exhibit index with tab numbers.
3. Clean copies of each primary document and one electronic set if requested.
4. Short written summary (1–2 pages) outlining your argument and key facts.
5. Proposed adjustment or computation showing how the numbers change if your evidence is accepted.

Organizing evidence: format and presentation

Appeals officers review many cases; make it easy for them to find what matters.

• Use a logical structure: Issue 1 → Evidence → Computation; then Issue 2 → Evidence → Computation.
• Number exhibits and reference them in your summary by exhibit number (e.g., “See Ex. 3: bank statement showing deposit on 4/15/20XX”).
• Provide a short one-page timeline for complex facts — dates and events side-by-side.
• Highlight key lines on financial statements or returns; use call-outs but don’t obscure originals.
• Supply digital copies (PDF) bookmarked to the exhibit index if Appeals accepts electronic submissions.

Practical note from practice: In my experience, the appeals officer will read your one-page summary first. If that summary makes the factual and legal link clear, your odds of success increase substantially.

Crafting a persuasive narrative

Evidence alone isn’t enough — weave facts into a concise story:

1. State the outcome you seek (e.g., allow X deduction, remove penalty, reduce income).
2. Summarize the IRS position in one line.
3. Present the facts that undermine that position, citing exhibits.
4. Tie facts to law or accepted practice and show the logical correction (computation).

Keep it neutral and professional: Admissions of minor errors, with an explanation and corrective computation, often increase credibility.

Presentation tips for the conference

• Start with your one-page summary and the exhibit index. Ask the appeals officer if they want you to proceed by issue.
• Speak in short, clear sentences. Use the exhibit number when referring to documents.
• Anticipate the IRS’s likely counterpoints and prepare concise rebuttals (supported by exhibit numbers).
• Be responsive, not defensive. If you don’t know an answer, offer to follow up with a document rather than guessing.
• Watch tone and body language (for in-person meetings). Calm professionalism builds trust.

Practical example: When presenting disputed income, point immediately to the third-party reporting or to bank deposits that reconcilably show the correct figure, then offer a short reconciliation schedule.

Negotiation and settlement strategies

Appeals officers are authorized to settle on terms consistent with law and administrative precedent. Consider these strategies:

• Offer a partial concession with an explanation if full reversal is unrealistic.
• Introduce comparable cases or administrative precedent if available.
• If penalty relief is the issue, document reasonable cause or reasonable reliance on professional advice.
• Discuss collection alternatives if the dispute is about amount owed (e.g., installment agreements) while the audit issue remains unresolved.

Remember the Appeals office’s mission: resolving disputes without litigation while following the law. Presenting reasonable compromises backed by factual support often closes cases.

When to use a representative

Representation is not required, but experienced advocates add value. A representative:

• Knows Appeals procedures and document expectations.
• Can prepare a persuasive protest or brief and draft computations.
• Communicates with Appeals and may negotiate more efficiently.

If you appoint a representative, file IRS Form 2848 (Power of Attorney) so they can act on your behalf (see IRS Form 2848 guidance).

(For help deciding whether to hire professional help, see our guide: When to Hire a Tax Professional for an Audit or Appeal.)

Virtual or telephone conference tips

• Test your connection and audio ahead of time.
• Email exhibits in the format requested by Appeals with a clear exhibit index.
• Use screen-sharing only if requested and ensure bookmarked PDFs are ready.

Common mistakes to avoid

• Submitting a disorganized packet without an index.
• Overloading Appeals with irrelevant documents.
• Failing to quantify the relief sought.
• Being combative or argumentative — it reduces credibility.

If Appeals rules against you

You have options, depending on the notice you received:

• With a statutory notice of deficiency (90‑day letter), you can petition the U.S. Tax Court.
• For other non‑statutory decisions, you may pursue refund litigation in federal district court after paying tax, or look at Collection Due Process rights if the case involved collection actions.

Consult a qualified tax attorney or enrolled agent before taking the next step.

Quick preparation timeline (2–6 weeks, typical small case)

1. Week 1: Read the notice and Appeals instructions; request file transcripts; gather primary records.
2. Week 2: Draft a 1–2 page summary and exhibit index; identify gaps and collect corroborating documentation.
3. Week 3: Finalize exhibits, computations, and a one-page timeline. Consider professional review.
4. Week 4+: Submit materials per Appeals instructions and prepare for the conference.

Complex cases will need a longer schedule and additional experts.

Useful authoritative resources

• IRS Publication 5, Your Appeal Rights and How To Prepare a Protest (IRS) — guidance on protest content and Appeals procedures.
• IRS Form 2848, Power of Attorney and Declaration of Representative — for appointing a representative.
• Taxpayer Advocate Service resources on appeals rights and timelines.

(Links and detailed references are available on the IRS and Taxpayer Advocate Service websites.)

Related reading on FinHelp

• Tax Audit Appeals: How to Prepare for the Appeals Conference — practical pre-conference tips and sample documents: https://finhelp.io/glossary/tax-audit-appeals-how-to-prepare-for-the-appeals-conference/
• How to Prepare an IRS Appeals Brief: Structure, Evidence, and Timing — drafting a persuasive written protest and exhibits: https://finhelp.io/glossary/how-to-prepare-an-irs-appeals-brief-structure-evidence-and-timing/
• When to Hire a Tax Professional for an Audit or Appeal — decide whether to bring in outside expertise: https://finhelp.io/glossary/when-to-hire-a-tax-professional-for-an-audit-or-appeal/

Final practical checklist

• Prepare a 1–2 page case summary.
• Build an exhibit index and tabbed packet (digital and paper if required).
• Include clear computations showing the requested adjustment.
• File Form 2848 if you will be represented.
• Rehearse your presentation and answers to likely questions.
• Submit materials per Appeals instructions and confirm receipt.

Professional disclaimer: This article is educational and does not substitute for individualized tax advice. For case-specific guidance, consult a qualified tax professional, CPA, enrolled agent, or tax attorney.

Authoritative sources: IRS Publication 5 and IRS guidance on the Office of Appeals; IRS Form 2848 instructions; Taxpayer Advocate Service resources.