Anytime you disagree with how your taxes are handled, it can be tricky to navigate what to do next. Luckily, you’re not the first to have issues with the IRS. A tax dispute arises when you don’t agree with a determination that the IRS or other taxing authority has made. The good news is that the IRS has an entirely separate office to handle disputes in the Office of Appeals. This is an impartial division of the IRS that holds conferences or hearings to address various tax disputes.
Common Types of Tax Disputes
You might find yourself in a tax dispute if you don’t agree with:
- The results of the audit of your income tax return
- How the IRS is collecting your past due tax balances
- The imposition of a tax penalty
These disputes often come from the IRS’s audit programs. There are five that you may find yourself in hot water with the IRS over. These include simpler audits like the automated underreporter program where IRS computers match items pre-reported on information returns (e.g., Form 1099) with what’s reported on your income tax return, and more complex ones, like the field examination that’s used for more complicated tax returns.
And sometimes, you just get unlucky. A research audit is chosen at random by the last digits of your social security number.
Filing and Processing Tax Disputes
Before you file something with the IRS to address your tax dispute, you need to make sure that you qualify for an appeal. If you received a letter from the IRS explaining your right to appeal and you don’t agree with the IRS’s decision, then it’s a good idea for you to file an appeal.
Before you file an appeal, check IRS publications that go over your issue. Be ready to explain your facts at the appeals conference or hearing to prove the IRS misapplied the law. And you also may need clear records and evidence proving that the IRS is wrong.
If you want to file an appeal, you’ll need to follow these steps.
- Step 1: Write a statement of the pertinent facts and relevant legal authorities about your tax dispute. This must be comprehensive, so you should get in touch with a tax attorney to ensure you’ve included all the facts you need.
- Step 2: Collect and attach all necessary records and evidence to include in your appeal.
- Step 3: File your appeal timely. For example, you have 30 days to file an appeal in response to a final audit report or a Final Notice of Intent to Levy
Before 2020, it took about 6 months to a year for the IRS to handle a dispute. Now, it can take 2 years or more, even though the IRS reports it’s making progress on its backlog. You need to be patient and persistent because that’s what will help you win your tax dispute in the end.
If that time frame is too long for you, you may want to consider other options for addressing your tax disputes. The IRS offers tax mediations to help resolve disputes as soon as possible. These work best if you just want to get the dispute over with and don’t have too many items to dispute.
What to Do if Granted An Appeal
If you are granted an appeal in a tax dispute, your appeal will be sent to the IRS Office of Appeals and assigned to an Appeals Officer. This person will then send you a letter scheduling your conference. Your Appeals Officer may request additional records, and be sure to provide those by the deadline to ensure your conference goes smoothly.
Let Expert Tax Attorney Mindy Meigs Handle Your Tax Dispute Appeal
Whether you’re granted an appeal or still figuring out what you need for an appeal, a tax attorney can make sure you write your appeal correctly and prepare you for your appeals conference. Contact expert tax attorney Mindy Meigs today to start your appeal..