Why preparation matters

An appeals conference is your chance to resolve a dispute with an impartial IRS appeals officer without going to Tax Court. Appeals officers evaluate the administrative record — not just the audit file — and they look for persuasive, well-organized evidence showing that the taxpayer’s position is accurate, plausible, and supported by contemporaneous records. The Office of Appeals exists to resolve disputes fairly and independently; bringing a full, credible record helps the officer reach the right conclusion more quickly (see IRS Appeals overview: https://www.irs.gov/appeals).

Below I draw on 15 years helping clients prepare appeals. In practice, the cases that win are rarely the ones with the loudest argument; they are the ones with the cleanest documentation and the clearest explanation.

Key evidence categories appeals officers expect

Organize evidence into these categories. Each item should be cross-referenced in an exhibit index and, if possible, bookmarked in a PDF.

  • Source documents and receipts: Original or scanned receipts, invoices, paid checks, merchant records, credit-card statements. These prove the transaction occurred and the amount paid.
  • Bank and financial records: Bank statements, cancelled checks, merchant deposit slips, credit-card activity that corroborates receipts and income/timing.
  • Contracts and agreements: Written contracts, leases, engagement letters, partnership agreements, and SOWs that establish the nature of a transaction or the parties’ intent.
  • Tax returns and supporting schedules: The return(s) under audit and the schedules, worksheets, depreciation tables, and tax-basis support used to prepare the return.
  • Third-party corroboration: Vendor invoices, third-party statements, acknowledgement letters from charities, appraisals, or sworn statements from counterparties.
  • Contemporaneous records and diaries: Mileage logs, appointment calendars, work logs, time-sheets, and photographs that establish use, time, location, or purpose.
  • Communications: Emails, text messages, letters, and IRS notices that show discussions, position changes, or prior acknowledgements.
  • Expert reports and valuations: Written appraisals, CPA summaries, or expert letters that explain complex valuations or industry practice.
  • Legal authorities and policy citations: Short, targeted citations to relevant IRS guidance, court cases, or revenue rulings if legal interpretation is central to your position.

How appeals officers evaluate evidence

Appeals officers look for five core qualities in the record:

  1. Relevance: Does the evidence directly address the adjustment or issue raised? Irrelevant paperwork wastes time.
  2. Contemporaneity: Records created at the time of events are stronger than after-the-fact reconstructions.
  3. Corroboration: Multiple, independent sources (e.g., bank records plus receipts) strengthen credibility.
  4. Consistency: Dates, amounts, and descriptions should match across documents and the taxpayer’s testimony.
  5. Credibility: Clear, professional presentation and honest, consistent explanations build trust.

If you can check these boxes, appeals officers will more readily accept your explanation or negotiate a reasonable settlement.

Practical exhibit list and organization

Create an exhibit packet that begins with a 1–2 page executive summary and an exhibit index. Use tabs for a printed binder or PDF bookmarks for electronic delivery. Number all exhibits and refer to them in your summary.

Suggested exhibit order:

  1. Executive summary: Two-page summary of the issue, relief requested, and bottom-line facts.
  2. Exhibit index: Table with exhibit number, short description, date, and page range.
  3. Chronology: One-page timeline of key events (filing, payments, communications, audits, adjustments).
  4. Core source documents: Receipts, invoices, bank statements, contracts (grouped by issue).
  5. Tax return and supporting schedules: Pages from the return under appeal, with callouts to supporting exhibits.
  6. Third-party corroboration: Letters, acknowledgements, appraisals.
  7. Communications with the IRS: Audit workpapers, notices, protest letters, and prior correspondence.
  8. Legal authorities or expert reports: Short legal memo and expert summaries, if needed.

In my practice, audit survivors who prepare a one-page chronology and a two-page executive summary see faster resolution. Appeals officers appreciate brevity and clarity.

Drafting a concise written brief

Before or with the conference, provide a concise written brief (2–6 pages) that:

  • States the issue(s) and the exact amount in dispute.
  • Summarizes the taxpayer’s position in plain language.
  • Cites the key exhibits by number and explains how each supports the position.
  • Anticipates the IRS counterargument and addresses it with evidence.
  • Proposes a precise remedy or settlement position.

A tight brief reduces back-and-forth. For small disputes, consider the shorter brief templates in our guide on preparing concise appeals briefs: How to Prepare a Concise Appeals Brief for Small Tax Disputes.

Presentation tips for the conference

  • Be punctual, professional, and concise.
  • Lead with your executive summary and request that the officer follow your exhibit index.
  • Use the chronology to control the factual narrative; appeal officers like a clear timeline.
  • When making arguments, reference exhibit numbers rather than vague descriptions (e.g., “See Exhibit 4, bank statement dated 5/12/2022”).
  • Avoid hostility with the auditor or appeals officer; Appeals is an independent forum, and professionalism preserves credibility.

Anticipating counterarguments and weaknesses

You should identify weaknesses in your case and address them proactively.

  • Missing documents: Create a reasonable explanation and provide alternative corroboration (bank records, statements from vendors).
  • Estimates or reconstructed numbers: Explain the method used, provide contemporaneous support if available, and present a narrow range rather than an absolute figure.
  • Related-party transactions: Provide evidence showing arm’s-length terms (comparable invoices, market rates, or transfer pricing support).

A common effective technique is to present a ‘‘best case’’ and a ‘‘reasonable middle’’ settlement number. Appeals officers are used to negotiation; showing flexibility can lead to a faster, more favorable outcome.

Common mistakes that weaken your case

  • Submitting unorganized files: Missing exhibit numbers or inconsistent pagination frustrate examiners and delays decisions.
  • Reconstructing records poorly: After-the-fact reconstructions without credible corroboration are treated skeptically.
  • Overloading with irrelevant documents: Give only what proves your position — too much unrelated material buries the key points.
  • Ignoring deadlines: Meet any submission dates in the NOD or appeals scheduling letter.

See our related article for more on building a persuasive administrative record: Winning Appeals: Building an Administrative Record That Persuades.

Evidence examples by common issue

  • Home office deduction: Floor plan, photos, proportion of home used for business, utility bills, and contemporaneous business records showing exclusive and regular use.
  • Charitable contributions: Bank records, canceled checks, donation acknowledgements from the charity, and contemporaneous donation logs for cash gifts.
  • Business expense disallowance: Contracts, invoices, proof of payment, and documents showing the business purpose and benefit to the company.

Working with representatives

If you retain a tax professional or attorney, provide the representative with a full copy of the exhibit packet and a signed Form 2848 (Power of Attorney) if they will speak on your behalf. Representatives can handle procedural negotiation and often streamline document delivery.

Timeline and expectations

Appeals timelines vary. Simple cases may resolve in weeks; complex matters can take months. The Taxpayer Advocate Service and the IRS Office of Appeals both recommend early, organized submissions to speed decisions (see TAS and IRS Appeals pages: https://www.taxpayeradvocate.irs.gov/ and https://www.irs.gov/appeals).

After the conference

If the officer issues a proposed resolution, review the agreement carefully. If you accept, ensure the settlement terms are clearly documented and reflected in any closing correspondence. If unresolved, ask about next steps — many issues can proceed to further administrative review or Tax Court if appropriate.

Quick checklist before your conference

  • Executive summary and 2–6 page brief completed.
  • Exhibit index and numbered exhibits prepared.
  • Chronology of events ready.
  • Originals or certified copies of key documents available.
  • Expert reports or appraisals summarized.
  • Power of Attorney (Form 2848) if represented.
  • Copies of all IRS correspondence and notices.

Professional disclaimer

This article is educational and informational only and does not constitute tax advice. For specific advice about your appeal, consult a qualified tax attorney, CPA, or enrolled agent. The IRS website and Taxpayer Advocate Service are authoritative resources for procedural rules and timelines.

Sources and further reading

By preparing a focused, well-documented exhibit packet and a short, persuasive brief, you make it easy for an appeals officer to rule in your favor. In my experience, clarity and organization often matter more than volume — bring the right documents, present them clearly, and anticipate the officer’s questions.