Background and purpose
An IRS appeals conference gives you a chance to resolve audit adjustments, penalties, collection decisions, or other disputes without going to court. Appeals Officers look for a clear, documented record that connects your facts to the tax rule that supports your position (see IRS Publication 5 and the Appeals process for rules and timelines).
In my practice, cases that win at conference usually share two traits: (1) the evidence directly addresses the specific adjustment the examiner made and (2) the material is organized so the Appeals Officer can verify facts quickly.
What evidence matters most (prioritized checklist)
- Core tax records (highest priority)
- Complete tax returns for the years in dispute and the signed forms submitted to the IRS.
- Spreadsheets or ledgers that reconcile reported income and deductions to bank deposits and invoices.
- Primary financial documentation
- Bank statements, cancelled checks, merchant records, and invoices tied to the entries on your return.
- Contracts or agreements that substantiate business income, cost of goods sold, or withholding.
- Contemporaneous documentation and communication
- Emails, letters, and notes that show conversations with customers, vendors, or the IRS.
- Timelines that establish when events occurred (useful in reasonable-cause or penalty-abatement requests).
- Third-party corroboration
- Form 1099s, W-2s, ledgers from vendors or customers, and affidavits from independent witnesses when appropriate.
- Legal and procedural support
- Citations to IRC sections, IRS rulings, or Appeals Office practice where relevant. Include brief explanations linking law to facts.
- Hardship or mitigation evidence
- Financial statements, proof of illness, natural disaster documentation, or other records showing why penalties or collection actions should be reduced or abated.
How to organize evidence for an Appeals Officer
- Start with an executive summary (one page): the disputed items, your requested outcome, and the key supporting documents by tab/page number.
- Use a numbered exhibit system (Exhibit 1 = tax return, Exhibit 2 = bank reconciliation, etc.).
- Include one-page reconciliations that map each adjustment the IRS made to the specific exhibits that refute it.
- Keep originals safe and provide clear, legible copies to Appeals.
Practical examples from practice
-
Unreported income claim: A client faced an income adjustment. We provided a bank-deposit analysis (Exhibit 3), customer invoices (Exhibit 4), and a cash-flow reconciliation that showed the IRS had double-counted deposits. The officer accepted the reconciliation and reduced the adjustment.
-
Penalty abatement: For a late-filing penalty tied to a software outage, we submitted vendor logs, help-desk tickets, and screenshots along with a chronology demonstrating timely filing attempts; the Appeals Officer abated the penalty.
Related FinHelp resources
- See our primer on what to bring and expect during an appeals conference for logistics and meeting tips.
- Read how Appeals Officers review cases and what to include in your submission for deeper insight on evidentiary thresholds.
- For focused document guidance, consult Appeals Conference Prep: What Evidence Appeals Officers Want to See.
Quick evidence table
| Evidence type | Why it matters | Example exhibits |
|---|---|---|
| Tax returns & signed forms | Baseline for disputed amounts | Signed Form 1040, Schedule C (Ex. 1) |
| Bank records & invoices | Tie reported items to receipts | Monthly bank statements, invoices (Ex. 2–4) |
| Correspondence & timelines | Show intent, attempts to comply | Emails, repair logs, chronology (Ex. 5) |
| Third-party docs | Independent verification | 1099s, vendor statements (Ex. 6) |
| Hardship documentation | Grounds for penalty relief | Medical bills, insurance claims (Ex. 7) |
Common mistakes to avoid
- Bringing undifferentiated paper: don’t hand over everything without an index—unindexed files make it harder for the officer to find the key items.
- Failing to address the specific adjustment: evidence must speak directly to the IRS’s stated issue (dates, amounts, and entries matter).
- Missing contemporaneous records: after-the-fact explanations are weaker than documents created at the time of the event.
Short checklist for the week before conference
- Create a one-page executive summary and exhibit list.
- Prepare reconciliations tying each IRS adjustment to specific exhibits.
- Print clean, tabbed copies and retain originals.
- Prepare two concise talking points per disputed issue.
Frequently asked questions
Q: Can I submit new evidence at the appeals conference? A: Yes—Appeals accepts new evidence, but it must be relevant and submitted in a timely manner. See our guide on submitting new evidence to Appeals for procedure and limits.
Q: Should I bring an expert or representative? A: You can. Experts (CPAs, enrolled agents, attorneys) help when technical matters require explanation. If you bring a representative, supply a signed Power of Attorney (Form 2848) if they will act on your behalf.
Authoritative sources
- IRS, Publication 5, Your Appeal Rights and How to Prepare a Protest (see current edition) — https://www.irs.gov/pub/irs-pdf/p5.pdf
- IRS, Office of Appeals — https://www.irs.gov/appeals
Professional disclaimer
This article is for general educational purposes only and does not serve as personalized tax or legal advice. For advice tailored to your situation, consult a qualified tax professional or attorney.
If you’d like a short checklist template or exhibit index example adapted to your case, a tax professional can prepare one that aligns with the Appeals Officer’s expectations.
