Awards & Recognition
When the auditing process concludes, the IRS will send you a notification letter explaining its findings and any changes proposed to bring you back into compliance. If you agree with these changes, you can simply pay the amount you have been assessed, sign an agreement form, and wash your hands of the matter. However, if you do not agree with the audit’s conclusion and subsequent IRS recommendations, you should know that you have the right to appeal and can have an experienced Orange County IRS appeals attorney represent you.
Unfortunately, the Appeals process can become very complex, and in some cases can even necessitate litigation in Tax Court. Working with an experienced attorney and CPA can help maximize your chances of making a successful appeal, while resolving your tax liabilities as efficiently and cost-effectively as possible. Your representative can assist you in preparing the strongest protest letter possible, and may be able to negotiate a favorable compromise on your behalf.
At The Tax Law Offices of David W. Klasing our knowledgeable team includes both accountants and attorneys, so you can feel confident you’re supported with 20 years of legal and financial experience throughout the IRS Appeals process. To arrange for a reduced-rate initial consultation with an Orange County IRS appeals attorney, call us at (800) 681-1295 today.
Appealing an IRS Audit if You Disagree with the Findings
If you do not agree with your auditor’s findings, you do not have to accept the results of the examination, and may request to appeal instead. However, there are two important points to note here:
- Appeals are available on the basis of financial disagreement only, and you will not be permitted to pursue disputes which are “based on moral, religious, political, constitutional, conscientious, or similar grounds.”
- You must request an appeals conference by filing what is known as a formal written protest. This is the next step after you receive Letter 525, which “contains information and lists IRS publications on how to file an appeal/protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.”
In addition to other articles of information, this formal written protest must include:
- The proposals you disagree with.
- The reasons why you disagree with those proposals.
- The facts which support your reasoning.
- The relevant law or laws which support your reasoning.
An experienced Orange County IRS appeals attorney can help you identify which statutes and precedents best substantiate your specific disagreements.
It should also be noted that if the amount you wish to appeal totals $25,000 or less, rather than requesting a conference you may file a Small Case Request by submitting Form 12203. However, the following are not permitted to file a Small Case Request:
- Employee Plans
- Exempt Organizations
- Partnerships
- S-Corporations
Once your request is received by your examiner, your case will be referred. Many cases are able to be resolved at this stage of the process, with the IRS reporting, “Every year, the Office of Appeals helps over 100,000 taxpayers resolve their tax disputes without going to Tax Court.”
However, if you are not able to reach a mutually acceptable resolution through a conference with your examiner’s supervisor, there are additional steps to the process. If a closing conference fails to yield an agreement, you may then petition U.S. Tax Court provided you do so within 90 days of being issued what is called a 90-day letter, or Notice of Deficiency (Letter 531). It should be noted that there is a processing fee associated with filing the petition. As an experienced litigator, David W. Klasing can represent you in Tax Court or before the California State Board of Equalization (BOE).
Appealing an IRS Collection
In addition to appealing the findings of an IRS audit, you may also appeal an IRS collection decision through the Office of Appeals. Depending upon each individual taxpayer’s set of circumstances, it may be possible to appeal the following:
- Installment Agreements
- Levies
- Liens
- Offers in Compromise
- Seizures
As delineated in Publication 1660 (Collection Appeal Rights), there two procedures a taxpayer may initiate in order to appeal collection actions:
- Collection Appeals Program (CAP)
- Collection Due Process (CDP)
Collection Appeals Program
CAP is both broader in scope and typically more rapid than CDP, but should you disagree with a binding CAP finding, you have no additional recourse. CAP is available for taxpayers subject to the following actions:
- Levies and property seizures, before or after being initiated by the IRS.
- Notice of Federal Tax Liens, before or after being filed by the IRS.
- The rejection, termination or proposed termination, or modification or proposed modification of an installment plan.
Collection Due Process
CDP generally takes more time than CAP, but the benefit is that if you disagree with a decision, you have the option to go to court, and to be represented by an attorney or CPA. CDP is available for taxpayers who have received the following:
- Final Notice — Notice of Intent to Levy and Notice of Your Right to a Hearing
- Notice of Federal Tax Lien Filing and Your Right to a Hearing under IRC 6320
- Notice of Jeopardy Levy and Right of Appeal
- Notice of Levy on Your State Tax Refund — Notice of Your Right to a Hearing
- Post Levy Collection Due Process (CDP) Notice
If you wish to appeal the results of an audit or an IRS collection action, an experienced Orange County IRS appeals attorney can help. To schedule an initial consultation at a special reduced rate, contact The Tax Law Offices of David W. Klasing online, or call us right away at (800) 681-1295.
