Awards & Recognition
Many people disagree with the tax determination made by the IRS. You may litigate the matter by filing an appeal. You are permitted to be represented during this appeal by a tax attorney, CPA, or other individual who is authorized to practice before the IRS. To authorize an Irvine Tax litigation attorney or your tax representative to speak with the IRS on your behalf, you must complete IRS Form 2848, Power of Attorney and Declaration of Representative.
In general, there are several main grounds for challenging an IRS determination and appealing a tax matter. These reasons include:
- You believe the IRS misinterpreted or misapplied the law thereby resulting in an incorrect determination
- You believe that the IRS did not understand or misunderstood the facts of the matter.
- You believe that the collection action is inappropriate and the IRS has already rejected your offer in compromise.
- You believe the IRS has applied the wrong facts to the matter.
While the foregoing are not the only grounds for an IRS dispute, they do make-up the more routine grounds for litigation.
You May Mediate Prior to Litigating
You or an experienced Irvine tax litigation attorney may choose to utilize the alternative dispute resolution techniques offered by the IRS Appeals Office. ADR is informal, flexible and confidential. While the mediator will identify core issues and may suggest settlement proposals, he or she cannot make a decision on the matter. Therefore, mediation of your tax debts is non-binding.
Depending on the type of tax payer you are, different types of mediation programs are available. For example, tax exempt entities can engage in Fast Track Settlement or Early Referral at the examination stage of the IRS process. In contrast, a small business or self-employed individual can apply to the same programs available to a tax exempt entity and engage in Fast Track Mediation during the collections process and post-Appeals mediation.
How do I Appeal the Matter and Litigate?
To request an Appeals Conference, in most cases, you must file a formal written notice of protest to the IRS. The formal notice of protest should contain you basic contact information, a statement that you wish the appeal the IRS findings, the relevant tax periods, each item or determination you disagree with, the reasons you disagree, the law or laws that you are relying on, and your facts or other proof that supports your position. Furthermore, you must satisfy a number of procedural requirements including authenticating the document under the penalty of perjury. Generally, the formal appeal must be filed within 30 days of the IRS determination letter.
In the alternative, for tax matters where the additional tax and proposed penalty for each period is $25,000 or less, you may file a Small Case Request with the IRS. A Small Case Request can be filed by following the instruction on the letter you received and by filing IRS Form 12203 Request for Appeals Review. However, employee plan, exempt organizations, S corporations and partnerships are ineligible for Small Case Requests.
What Happens After my First Notice from Appeals?
The response time for your particular concern from Appeals can vary. Depending on the type of case and the time needed to review the file, you can typically expect to hear from an Appeals employee within 90 days of your appeal. If more than 90 days have elapsed since you filed your request, it is prudent to inquire with the office that you filed with. The office can tell the status of your case including when your matter was forwarded to Appeals.
You should generally allow about 90 days from when your file was sent to Appeals for a reply. In most cases the office will be able to update you on your case, but if the IRS office cannot provide a reason for the delay you have two options. First, you can request that office to contact IRS Appeals for an approximate date when you might be contacted. Second, you or your attorney can contact Appeals directly to see if your case has been assigned to someone in the Appeals office.
What is the timeframe for resolving an IRS Appeal?
The exact timeframe for your IRS litigation is dependent upon your particular legal issues and concerns. It is safe to say that most appeals take an absolute minimum of 90 days. While, many matters are settled within a year, particularly complex litigation issues can take longer. A better estimate of your case’s particular timeframe can be determined after a thorough review.
If you are considering appealing or litigating an IRS decision, you should contact an experienced Irvine tax litigation lawyer immediately. Call The Tax Law Offices of David W. Klasing at (949) 681-3502 or (800) 681-1295 today to arrange for a reduced-rate initial consultation.
