Overview

The IRS Office of Appeals reviews disputes when a taxpayer disagrees with an IRS determination (audit adjustments, penalties, collection actions, etc.). Appeals exists to resolve cases administratively and avoid litigation where possible. The office is independent from the examination and collection functions, and its Officers use a hazards-of-litigation standard—meaning they weigh the likely outcome in court when evaluating settlements (IRS Appeals Overview: https://www.irs.gov/appeals).

Key steps in the appeals process

  1. Confirm eligibility and deadlines
  • Deadlines vary by notice type. Many administrative appeals require action within 30 days of the notice, but some notices give different timeframes. Always check the specific IRS notice and the Appeals instructions it includes (see Publication 556: https://www.irs.gov/pub/irs-pdf/p556.pdf).
  1. File a written protest or complete the requested form
  • Small cases under a specific dollar threshold may use a simpler protest; larger cases require a formal written protest that explains the disputed issues, facts, and legal arguments. Your protest should say what you want the Appeals Office to do and include supporting documents.
  1. Build the administrative record
  • Assemble the audit file, correspondence, returns, ledgers, and third‑party documents. Create a clear index and a one‑page executive summary stating your factual and legal position.
  1. Attend the conference/hearing
  • Appeals conferences are less formal than court. You’ll meet an Appeals Officer by phone, virtually, or in person to present your case, answer questions, and negotiate.
  1. Negotiate using the hazards-of-litigation framework
  • Appeals Officers evaluate the strength of each side’s legal position and may offer a compromise reflecting litigation risk and administrative precedent.

What to include in your submission

  • Concise statement of facts and disputed items.
  • Documents that directly support positions (receipts, contracts, bank records, contemporaneous notes).
  • Citations to statutes, regulations, or case law where relevant (keep legal arguments succinct).
  • A proposed resolution or settlement range.

Practical strategies that work (from experience)

  • Be organized and concise: I recommend a one‑page summary plus a tabbed evidence packet. In my practice, appeals cases that start with a clear executive summary reach resolution faster.
  • Focus on the strongest issues: concede weak points if appropriate and concentrate resources on items with the largest financial exposure or strongest legal defense.
  • Use concessions tactically: offering a partial concession can build credibility and speed settlement.
  • Propose realistic alternatives: installment agreements, penalty abatements, or partial adjustments can unlock resolution without full concession.
  • Consider professional representation: experienced tax professionals understand Appeals’ standards and can present legal arguments and settlement structures more persuasively.

Common mistakes to avoid

  • Waiting to organize: late or missing documentation weakens credibility.
  • Overloading Appeals with irrelevant material: give a tight, issue‑focused record.
  • Treating Appeals like automatic reversal: an appeal must be supported by facts and law.
  • Missing deadlines: late protests forfeit administrative appeal rights and may force litigation.

Timing and likely duration

Most routine appeals resolve in several months; simpler cases may finish in 1–3 months, while complex issues or collection disputes can take 6–12 months or longer. Timelines depend on case complexity, the need for additional evidence, and workload at the local Appeals office.

When to escalate beyond Appeals

If Appeals cannot resolve a case, you may receive a Notice of Determination or a report of no change, after which you can pursue litigation (Tax Court, U.S. District Court, or Court of Federal Claims) or other administrative remedies depending on the issue. Appeals often narrows issues and preserves rights to litigate remaining items.

Related resources

Frequently asked questions (short answers)

  • Can I represent myself? Yes. Many taxpayers represent themselves, but experienced representation improves outcomes on complex legal or factual issues.
  • How long will Appeals take? Expect several months; complexity drives longer timelines.
  • Will Appeals stop collection activity? In some situations a timely appeal (for example, a collection appeal or CDP request) can stay collection actions while the case is reviewed; check the notice instructions and Appeals guidance.

Professional disclaimer

This article is educational and does not replace personalized tax advice. For case‑specific guidance, consult a qualified tax attorney, CPA, or enrolled agent. The IRS’s Appeals Office and Publication 556 are primary authoritative sources for procedures and deadlines (https://www.irs.gov/appeals; https://www.irs.gov/pub/irs-pdf/p556.pdf).

Sources and further reading

If you’d like, I can provide a one‑page appeals checklist tailored to common small business audit issues or a template outline for a formal written protest.