Receiving an IRS notice that you disagree with can be stressful, but taxpayers may have appeal rights depending on the type of IRS action involved.
Before submitting an appeal, it is important to understand the notice, the applicable deadline, and the information needed to support your position.
1. Read the Entire IRS Notice
Start by carefully reviewing the notice you received.
Identify:
- The tax period involved
- The amount in question
- Why the IRS issued the notice
- What action the IRS proposes
- Instructions for responding
- The deadline to respond
- Any appeal rights described in the notice
Do not assume that every IRS notice follows the same process.
2. Pay Close Attention to Deadlines
Deadlines can be extremely important when dealing with IRS appeals.
Certain collection notices, for example, may provide a limited period to request a Collection Due Process hearing.
Missing a deadline can affect the rights and procedures available to you.
For that reason, keep the original notice and record when you received it.
3. Determine Why You Disagree
Clearly identify the issue before preparing your response.
For example, you may believe:
- The amount is incorrect
- A payment was not properly credited
- The IRS is using incorrect information
- You qualify for a collection alternative
- A proposed collection action is inappropriate
- Relevant documentation was not previously considered
The appropriate response will depend on the specific issue.
4. Gather Supporting Documentation
Documentation can be critical when disputing an IRS determination.
Depending on the situation, relevant documents might include:
- Tax returns
- IRS notices
- Proof of payments
- Bank statements
- Income documentation
- Expense records
- Correspondence with the IRS
- Financial statements
- Other records supporting your position
Keep copies of anything submitted.
5. Understand Which Appeal Process Applies
Different IRS disputes can involve different procedures.
Collection matters, examination disputes, rejected Offers in Compromise, and other determinations may have different appeal processes and forms.
For certain collection actions, taxpayers may be able to request a Collection Due Process hearing.
The notice you receive should explain the applicable rights and response process.
6. Be Clear and Accurate
An appeal should clearly explain the issue and the reason you disagree.
Avoid submitting incomplete or inaccurate information.
If financial information is required to evaluate a collection alternative, make sure the information reflects your actual financial circumstances and is supported by appropriate documentation.
7. Don’t Wait Until the Last Minute
IRS matters can require time to review.
Starting early gives you more time to understand the notice, collect records, ask questions, and determine an appropriate response before the deadline.
Need Help Understanding an IRS Notice?
If you received an IRS notice and are unsure what it means, INNOVATIVETAXGUIDANCE LLC can help you review your situation and understand potential next steps.
Request a Free Consultation
This article provides general information and is not legal or tax advice. Appeal rights and deadlines depend on the specific IRS notice and circumstances. INNOVATIVETAXGUIDANCE LLC is not affiliated with the IRS or any government agency.
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