How to Appeal an IRS Audit Determination: Steps and Timelines

Quick summary

If you get an adverse audit determination, act immediately. Most IRS examination notices include a deadline (typically 30 days) to request an Appeals Office conference; other notices (like a Notice of Deficiency) give you 90 days to petition the U.S. Tax Court. Appeals is an independent IRS office that seeks fair resolution; a successful appeal can reduce or eliminate proposed tax, penalties, or interest (IRS Publication 556; IRS Appeals page).

Step-by-step process to appeal an IRS audit determination

1. Read the notice carefully and calendar the deadline

• The examiner’s final notice (often called a “30-day letter”) usually gives you 30 days from the date on the letter to request an Appeals conference. The letter will say how to request review and where to send documents.
• If you receive a Notice of Deficiency (the “90-day letter”), you have 90 days (150 if mailed outside the U.S.) to file a petition with the U.S. Tax Court instead of paying the tax (U.S. Tax Court rules).

1. Decide whether to request an Appeals conference or pursue court

• Appeals Office: Independent within the IRS and generally focused on settlement. It’s the usual next step for most audit disputes.
• U.S. Tax Court or federal court: If you prefer litigation or cannot resolve the dispute administratively, a timely petition to Tax Court preserves your right to contest the tax without first paying it.

1. Gather and organize your evidence

• Collect primary records: receipts, invoices, bank statements, canceled checks, contracts, mileage logs, and contemporaneous notes.
• Build a clear narrative: map each disputed item to supporting documents and explain the legal basis for your position (statutes or case law where helpful).
• Create a one-page issues list summarizing each disputed adjustment, the dollar amount, and the documents that support your position.

1. Prepare your request for appeal

• Follow the instructions on the notice. You can often request a conference by letter stating you want an Appeals review, or by sending a written protest if required.
• A formal written protest is required in many cases where the proposed change exceeds $25,000 for a single tax period. Per IRS guidance (Publication 556), a proper protest should include: taxpayer name and current address; taxpayer identification number; tax periods at issue; a statement of the issues being protested; the facts supporting each issue; the legal authority or reasons; the specific changes being requested; a signed declaration that the information is true to the best of the taxpayer’s knowledge; and the taxpayer’s signature.
• Note: Do not rely on a third-party template without confirming the content matches your situation and the requirements in Pub 556 (IRS Publication 556 outlines appeal rights and protest requirements).

1. Submit your appeal request and supporting documents

• Send your request to the address or fax number shown on the notice. Some local Appeals offices accept electronic submission when arranged in advance; follow the notice instructions.
• If you are represented, include Form 2848 (Power of Attorney and Declaration of Representative) so Appeals can speak directly with your representative (IRS Form 2848).

1. Prepare for the Appeals conference

• Appeals typically uses a conference model that can be in-person, by phone, or by correspondence.
• Expect questions focused on the facts and on principles of administrative concessions and settlement—Appeals looks for reasonable compromises that reflect hazards of litigation for both sides.
• Bring a concise brief and a document index. Avoid introducing wholly new theory without explaining why it wasn’t raised during the audit.

1. Resolution or next steps

• Appeals may accept, partially accept, or reject your positions. If resolved, you’ll receive written agreement or revised Notice of Tax Change with instructions.
• If Appeals denies relief, options include paying the tax and filing a refund claim or suing in federal district court, or if you received a Notice of Deficiency and did not use Appeals, petitioning the U.S. Tax Court.

Timelines: what to watch and why they matter

• 30 days: Typical time to request an Appeals conference after receiving a statutory notice (the exact days are listed on the notice). Missing this window can cause the IRS to proceed with assessment and collection actions.
• 90 days: If you receive a Notice of Deficiency, you generally have 90 days to file a petition with the U.S. Tax Court (150 days if the notice was mailed outside the U.S.).
• Appeals processing time: Resolution through the Appeals Office commonly takes several months. Simple cases may resolve in 2–6 months; more complex audits frequently take 6–12 months or longer depending on facts, legal issues, and office workload (time varies by office and case complexity).
• Collection appeals (different path): For collection actions such as lien/levy, you have 30 days to request a Collection Due Process (CDP) hearing using Form 12153. CDP has its own rules and statutory protections (IRS collection procedures).

These deadlines are strict. If you’re near a deadline, file a timely request for Appeals and preserve all evidence.

How to write an effective written protest (practical checklist)

• Start with a one-line statement: “I request Appeals review of Examination Report dated [date].”
• Include: taxpayer name, EIN or SSN, tax period(s), the adjustments you dispute and the dollar amounts.
• For each adjustment: briefly state the facts in plain language and cite the documents that prove them. If applicable, cite controlling tax code sections, regulations, or cases.
• Include a summary of relief requested and a signature under penalties of perjury.
• Attach an exhibit tab system (e.g., Exhibit A = bank statements; Exhibit B = invoices) and a brief table of contents.

Refer to IRS Publication 556 for required elements and thresholds for formal protests (IRS Publication 556).

Representation and forms

• Power of attorney: Use IRS Form 2848 to authorize a CPA, enrolled agent, or attorney to act for you. Appeals will generally communicate directly with an authorized representative.
• Collection appeals: For lien/levy or other collection disputes, Form 12153 is used for a Collection Due Process hearing.
• Keep copies of everything and send by certified mail or a method with tracking if you submit hard copies.

(IRS Forms: Form 2848; Form 12153)

If Appeals denies your claim: options and order of operations

1. If you received a Notice of Deficiency (and didn’t previously petition Tax Court), you can petition the U.S. Tax Court within 90 days.
2. If you’ve exhausted Appeals and still disagree, your options include paying the tax and suing for refund in U.S. District Court or the U.S. Court of Federal Claims, or pursuing a petition in Tax Court if you preserved that right earlier.
3. For smaller disputes (Tax Court small cases procedure), there is a simplified track for cases under $50,000 for the tax year.

Each option has different costs, burdens of proof, and timeframes—talk to a tax litigator or experienced representative before filing suit.

Practical tips and common pitfalls

• Don’t miss the deadline: filing one day late can eliminate administrative appeal rights.
• Be concise: Appeals officers value clear issue statements and organized evidence over voluminous, unfocused submissions.
• Address the IRS’s legal argument: explain why the IRS’s interpretation is incorrect and provide alternative authority if possible.
• Document contemporaneously: create a clear paper trail during transactions—this is often decisive.
• Consider settlement: Appeals’ mission is to resolve disputes without litigation; be realistic about the hazards of litigation for both sides.

In my practice (15+ years as a CPA and CFP®), cases that succeed at Appeals typically have strong documentary support, a clear legal hook, and a focused presentation. Conversely, appeals that fail usually suffer from missing records, new issues introduced late without justification, or missed deadlines.

Related resources on FinHelp.io

• Read our practical guide to preparing for an Appeals conference: “Tax Audit Appeals: How to Prepare for the Appeals Conference” (https://finhelp.io/glossary/tax-audit-appeals-how-to-prepare-for-the-appeals-conference/).
• If you’re deciding on representation, see: “Audit Representation: When to Hire a Tax Attorney vs. CPA” (https://finhelp.io/glossary/audit-representation-when-to-hire-a-tax-attorney-vs-cpa/).

Final notes and professional disclaimer

This article summarizes common steps and timelines for appealing an IRS audit determination and relies on IRS guidance (see IRS Publication 556 and the IRS Appeals pages). It is educational only and not individualized tax or legal advice. For help tailored to your facts, consult a qualified tax professional or tax attorney and consider executing a Power of Attorney (Form 2848) to allow them to represent you.

Authoritative sources: IRS Publication 556: Examination of Returns, Appeal Rights, and Claims for Refund (IRS); IRS Appeals main page (https://www.irs.gov/appeals); U.S. Tax Court (https://www.ustaxcourt.gov/); IRS Form 2848 information page (https://www.irs.gov/forms-pubs/about-form-2848).