Why use the IRS Appeals Process?

If the IRS proposes changes to your return or takes collection action (levy, lien), Appeals exists to resolve disputes fairly and without litigation. Appeals officers are independent of the original exam or collection team and focus on reaching a negotiated, fact‑based resolution. In my practice advising taxpayers for over 15 years, Appeals frequently produces better outcomes than accepting the audit adjustments or immediately escalating to court — particularly when taxpayers present organized, persuasive evidence.

(Official IRS overview: https://www.irs.gov/appeals.)

When is Appeals the right next step?

  • You disagree with an examiner’s proposed adjustment but want to avoid court.
  • You received a formal notice that includes appeal rights (many audit closing notices and collection notices do).
  • You need an independent review of scope, penalties, income classification, or deductions.

Note: Deadlines vary by notice type. Some collection notices give 30 days for a Collection Due Process (CDP) hearing; a statutory Notice of Deficiency (a “90‑day letter”) has its own timeline for Tax Court. Always check the notice for the specific deadline and the IRS Appeals page for details (IRS: https://www.irs.gov/appeals).

Step‑by‑step: How to start and navigate an IRS appeal

  1. Read the notice carefully and identify the appeals right and deadline
  • The IRS notice you received should state whether you can request an Appeals review and the date by which to act. Missing the deadline can limit your options. If a notice isn’t clear, call the number on the letter and confirm the appeal deadline in writing.
  1. Decide who will represent you
  • You may represent yourself, but most taxpayers benefit from a qualified representative. If you use a CPA, attorney, or enrolled agent, file Form 2848 (Power of Attorney) to authorize them to speak with Appeals and obtain records. Using a professional often clarifies issues and speeds resolution.
  1. Prepare a clear written protest or appeals packet
  • If the case meets the IRS’s thresholds for a formal protest, prepare a written protest that includes: your identifying information (name, taxpayer ID, tax year), a statement of facts, specific issues in dispute, legal and factual arguments supporting your position, the relief you seek (dollar amounts), and a signature under penalties of perjury.
  • Even when a formal protest isn’t required, submit a concise, well‑organized packet of evidence (receipts, contracts, third‑party records). See our guide on preparing a strong appeals packet: How to Prepare a Strong Appeals Packet for the IRS Appeals Office.
  1. File the protest and request a conference
  • Mail the protest or submit it as instructed on the notice. Keep proof of delivery. For collection matters, you may request a Collection Due Process hearing or an Equivalent Hearing with Appeals.
  1. Expect a neutral review and a conference
  • An Appeals officer reviews the file independently. You may be offered a conference (by phone, video, or in person). Prepare a short agenda and present only the strongest points and documentation. The officer’s role is to evaluate the law, IRS procedure, and the facts objectively.
  1. Negotiate and consider settlement tools
  • Appeals officers can settle on a compromise of liability, penalty relief, abatement, or alternative collection solutions (installment agreement, Offer in Compromise for collection cases). They are generally open to equitable relief if the facts and law support it.
  1. If Appeals decision is unfavorable, evaluate next steps
  • Options include paying the assessment, requesting further administrative review in limited cases, or litigating in U.S. Tax Court or federal court. The right path depends on deadlines, the strength of your position, and cost considerations. For court options and deadlines see the U.S. Tax Court (https://www.ustaxcourt.gov).

Practical evidence and organization checklist

  • Tax returns and amended returns.
  • Bank and credit card records showing deposits and payments.
  • Contracts, invoices, and third‑party statements.
  • Time logs, mileage logs, home office schematics with square footage, and contemporaneous notes.
  • Correspondence with preparers, clients, or third parties.
  • Expert reports (when valuation or specialized knowledge is central).

In my experience, the single best predictor of success in Appeals is contemporaneous documentation that directly addresses the issue the IRS raised.

Common pitfalls to avoid

  • Missing the appeals deadline — check your notice immediately and calendar the date.
  • Submitting an unfocused package — Appeals officers read many cases; lead with the strongest facts and a short summary.
  • Over‑lawyering or burying facts in excessive legal citations — present clear facts first, then law.
  • Failing to authorize your representative properly (use Form 2848) — Appeals will not discuss privileged information without proper authorization.

See related guidance: How to Request an Appeals Conference: Timeline and What to Expect.

Special considerations: Collections vs Audit adjustments

  • Collection appeals (CDP/Equivalent Hearing): If the IRS sends a notice of intent to levy or a lien, you may request a Collection Due Process hearing within the timeline stated on the notice. Appeals can review collection alternatives (installment agreement, Offer in Compromise, currently not collectible status) and can consider hardship arguments. The Taxpayer Advocate Service can assist if you face systemic delays or economic harm (Taxpayer Advocate Service: https://www.taxpayeradvocate.irs.gov).

  • Audit adjustments: Appeals focuses on whether the examiner correctly applied the tax law to the facts. The Appeals officer can accept, modify, or reverse adjustments based on the record and applicable law.

How Appeals evaluates your case (what they look for)

  • Credibility and contemporaneous records.
  • Clear articulation of legal authority or precedent supporting your position.
  • Procedural correctness — whether the IRS followed its audit procedures and considered penalty relief when appropriate.
  • Ability to reach a practical settlement that adequately protects tax administration while treating the taxpayer fairly.

Costs, timing, and expectations

  • Appeals is generally an administrative (non‑fee) process; you will still have professional fees if you hire representation.
  • Timeline: Simple cases may resolve in a few months; complex matters can take longer. Expect varying response times depending on Appeals workload and case complexity.

When to escalate to Tax Court or federal court

  • Consider litigation when legal precedent strongly supports your position, and Appeals is unlikely to change course. Litigation is costlier and has strict filing deadlines (e.g., the 90‑day period for a statutory Notice of Deficiency). Consult a tax litigator early if litigation is a possible outcome.

Sample short structure for a written protest (use when formal protest is required)

  • Heading: Taxpayer name, tax year(s), taxpayer identification number.
  • Statement of disagreement and relief sought (dollar amounts).
  • Statement of facts in chronological order.
  • Legal and factual argument with citations to controls or IRS guidance.
  • List of documents attached.
  • Signature and date.

Refer to our practical templates and packet examples in How to Prepare a Strong Appeals Packet for the IRS Appeals Office.

FAQs — quick answers

  • Can I represent myself? Yes, but professionals can improve results.
  • Will Appeals accept new evidence? Generally yes, especially if it is relevant and timely.
  • Does Appeals have the power to abate penalties? Yes, when facts and law support relief.

Final practical tips from my practice

  • Start preparing as soon as you receive the notice — gather evidence before memories fade.
  • Be concise: give Appeals the clearest, shortest path to rule in your favor.
  • Be flexible: Appeals is a negotiation. Identify the minimum acceptable outcome before you begin.

Disclaimer

This article is educational and does not constitute tax or legal advice. Rules, deadlines, and forms change; consult a qualified tax professional for advice specific to your case.

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