Appealing an IRS Audit Report in Washington DC

When the IRS conducts an audit of a taxpayer, they will create a report of their findings at the end; which might include an additional tax assessment or penalties. If the taxpayer disagrees with the audit report and is unable to come to a resolution with the agent or their supervisor, they can appeal that decision and request a third-party review of the audit.

Every audit is eligible to be appealed, but the appeal must be based in law and not on any other grounds. If you need help appealing an IRS audit report in Washington DC, call Pontius Tax Law for valuable insight.

Why Would Someone Want to Appeal an Audit Finding?

The main reason to appeal an IRS finding is to lower the total amount of changes made during the audit and reduce the additional tax that is due, including penalties and interest owed to the IRS. Generally, the taxpayer has 30 days from the date of the final report letter to file their appeal, so you must act quickly.

It is possible to win the case completely on the merits or even negotiate a smaller settlement. Typically, there is a good chance of having some success during the IRS appeals conference, whether it leads to a reduced amount due or winning completely on the merits of the case.

The Process for Appealing the Result of an Audit

If the amount at issue in an audit report is less than $25,000, a small case request can be made. This requires a brief written statement requesting an appeals conference, indicating the findings which the taxpayer does not agree with, and the reasons why they disagree. If the amount is over $25,000, the taxpayer must file a formal protest. This is a much more time-consuming process and requires a detailed explanation of why the taxpayer believes they are correct. The taxpayer must also attest to the facts and the protests under penalties of perjury. For that reason, it is important to have a DC attorney help you appeal and IRS audit report finding.

How an Attorney Can Assist

Our DC attorney can help your appeal by first reviewing the facts presented during the audit, then analyze the applicable law and help write the formal protest. Once the protest is submitted, he will take the lead during the appeals conference to efficiently communicate both the facts and the case law to the appeals officer.

If you had one tax attorney during an audit, you have the option of choosing a different attorney for the appeal. However, the new attorney will need to get up to speed on the case and review the audit; whereas keeping the original attorney throughout the appeal means they have more information about the case already.

In the Taxpayer’s Bill of Rights, number five is the right to appeal an IRS decision in an independent forum. Some examples of appealable decisions are:

• Denial of a request for certain penalty abatement
• Denial of a request for innocent spouse relief
• Rejection of an offer in compromise
• Determination that they owe a penalty
• Determination affecting tax-exempt status
• Determination affecting qualification of a retirement plan

Appeals will also consider liens, levies, asset seizures, or installment agreements as well.

Call Our Washington DC Attorney to Appeal an IRS Audit Report

There is no specific penalty imposed for having your appeal denied, but interest and penalties continue to accumulate during the appeals process. Additionally, the appeals officer may find additional issues with the audit that negatively affect the taxpayer which the original agent did not catch. Therefore, you need to act carefully.

Call Pontius Tax Law to discuss appealing your IRS audit report in Washington DC, and learn how we can offer value to your current situation.