IRS Tax Appeals

Under our tax system, you can appeal an income, estate, or gift tax or penalty that the IRS assesses you. However, for the appeal to be effective, you must know how, when, and where to file your protest. For example, you don’t have to file a protest in every case and you don’t have to file a formal written protest in every case. Determining whether to file or not file a protest, and when to file, could be crucial to the strength of your case if ultimately it goes to court. Some of the advantages of filing a protest include:

  • It gives you and the IRS the opportunity to settle your case without the expense of going to court, and allows you to still keep open the option of later taking your case to court should you later decide it’s in your best interest;
  • It gives you more time to defer paying any resulting taxes that you ultimately pay. However, it does not stop the interest meter on the taxes you may end up owing (or that the IRS may end up owing you), from continuing to run; and
  • Should your case proceed to court, you may be able to recover reasonable attorney fees and other costs you incurred in dealing with the IRS, if the court later finds that the IRS’s position in your case was not substantially justified.

On the other hand, the disadvantages of filing a protest may include that the appeals officer may raise new issues in your case which were missed by the revenue agent that audited your case, and filing a protest may delay how long it takes to resolve your case and prolong the stress of dealing with the IRS.

Don’t take on the IRS or the other taxing authorities without the assistance of an experienced and knowledgeable tax attorney that knows how they work. If you have been contacted about starting an audit of you or your business, are already under audit, or have been audited, don’t hesitate to contact or call us at (770) 962-7201. Your initial consultation is free.