Why it matters

An examination protest preserves your right to an independent review by the IRS Office of Appeals and often avoids immediate collection action. In my 15 years as a CPA and CFP®, I’ve seen well-prepared protests resolve large adjustments without litigation; poorly prepared ones usually fail to change the IRS position.

When to file

  • Act quickly. If you receive a 30‑day letter (Notice of Proposed Adjustment or similar), you generally have 30 days from the date of the letter to request an Appeals review or otherwise respond (see IRS Publication 556). Missing the deadline can foreclose Appeals options. (IRS: Publication 556 and the Appeals webpage).
  • Know the thresholds. A formal written protest is typically necessary when the amount in dispute for a taxable period exceeds $25,000; smaller disagreements may be handled as a “small case” (Form 12203) or through less formal channels. (IRS Publication 556).

What to include in a strong written protest

A persuasive protest is organized, factual, and follows the IRS guidance. Include:

  • Taxpayer identification: name, address, taxpayer identification number, and the tax periods at issue.
  • The specific adjustments you are protesting and the dollar amounts involved.
  • A concise statement of facts for each issue and the reason you disagree (factual and legal basis).
  • Copies of key supporting documents (receipts, contracts, bank records, transcripts). Only include relevant evidence; label exhibits and reference them in your narrative.
  • A clear conclusion that requests Appeals consideration and the relief you seek.
  • Signature of the taxpayer or an authorized representative and contact information.

IRS Publication 556 provides details on protest content and delivery; follow the mailing/fax instructions on the audit report or notice you received.

How the process unfolds

  • Intake: Appeals will acknowledge receipt and assign a case number.
  • Review: An Appeals officer reviews the protest, supporting evidence, and the IRS examiner’s file. This can take several weeks to months depending on complexity.
  • Discussion/Conference: Appeals may request a conference (virtual or in‑person) where you or your representative can present facts and negotiate.
  • Resolution: Appeals may propose a settlement, sustain the IRS adjustment, or agree with you. If unresolved, the letter will explain next steps — often options for litigation (Tax Court or other courts) or collection processes if tax is due.

Practical tips that help your protest stand up

  • Be factual, not emotional. Stick to evidence and law; avoid long, unfocused narrative.
  • Organize documents. Use a numbered exhibit system and reference exhibits in your written protest (example: Exhibit A – invoices).
  • Keep a clean record of communications and send submissions by trackable mail or follow the IRS notice for electronic/fax options.
  • Consider professional representation. A qualified CPA, EA, or tax attorney can clarify law, craft persuasive argumentation, and negotiate effectively. In my practice, professional preparation increases the chance of favorable Appeals outcomes.

Small‑case (sue‑for‑less) option

For disagreements of $25,000 or less per taxable period you can request Appeals consideration under the small case request procedure using Form 12203. Small case decisions are binding on the IRS but cannot be appealed further, so weigh that tradeoff before choosing this path. (IRS Publication 556).

Common mistakes to avoid

  • Missing the deadline named on the notice.
  • Submitting a short, unsupported statement of disagreement without documents.
  • Overloading Appeals with irrelevant records; include what proves your position and reference it clearly.

Related resources

Authoritative sources

Professional disclaimer

This article is educational and not a substitute for personalized tax advice. For case‑specific guidance, consult a qualified tax advisor or attorney.