After receiving notice of the outcome of an audit, taxpayers may have the option to appeal the IRS's decision. Taxpayers have multiple ways to challenge IRS audit findings, and the best option will depend on the details of their specific situation.

The IRS Independent Office of Appeals (Appeals) is the administrative form that taxpayers can use to challenge an IRS compliance action. This office's goal is to resolve disagreements without resorting to litigation.

When Can Taxpayers File an Appeal?

When taxpayers disagree with an audit's findings, they can generally file a written protest within thirty days of the date listed on the notice or letter about an audit's outcome. All protests should be sent to the address listed on the letter.

Taxpayers cannot file an appeal solely because they disagree with a decision or think a decision is unfair. They must have legal or procedural grounds for an appeal. Examples of valid reasons for an appeal:

• A misrepresentation of the law
  • A tax attorney can help taxpayers show why a decision involved an error with the law.
• A misrepresentation of the facts
  • In this situation, taxpayers should have evidence, such as organized records, to back up their claim.
• If the IRS takes an inappropriate collection action against a taxpayer or if an offer in compromise was denied
  • In both of these situations, taxpayers need to be able to explain and support their position.

Taxpayers should focus on one of these grounds as the basis for their appeal. Unnecessary arguments or paperwork can make an appeal more difficult for taxpayers.

Tips for Filing an Appeal

Taxpayers should file appeals only when they have grounds for appeal. What to do when filing an appeal with the IRS:

• Follow all deadlines and filing requirements
• Send all communications to the correct office
• Be professional in all communications with the IRS
• Focus on legal and procedural reasons for appealing an audit
• Don't file an appeal solely because of being unable to pay the amount of tax owed
• Be honest throughout the process
• If sending evidence or supplemental documents, generally keep the originals and send copies

If you have questions about appealing an audit decision, call Senior Partner, Tax Controversy Attorney, and former IRS attorney Brandon A. Keim at (602) 200-7399 or contact him online to discuss your options.