IRS Appeals Representation
Understanding IRS Appeals Representation in Texas
If you disagree with the IRS after it concludes its examination, investigation, or makes a determination, most times the next best step toward resolving your tax situation without litigation is requesting your case be sent to the IRS Independent Office of Appeals. Despite being housed within the IRS, the Independent Office of Appeals is independent from the Examination, Investigation, Collection, and Litigation functions of the IRS. In fact, the primary purpose of the Independent Office of Appeals is to resolve disputes between the Government (IRS) and taxpayers.
Selecting the IRS Appeals process provides a chance to challenge IRS audit findings or collection actions without immediately going to Tax Court. Having an experienced Tax Lawyer representing you individually or your business before the IRS Appeals Office is critical, however, because you generally only have one opportunity for your tax case to be considered by an Appeals Office in an Appeals Hearing. Booth P.C. has over 15 years of experience in all aspects of IRS Appeals including penalty abatements, Estate Tax hearings, liens and levies, and Income and Corporate Tax settlements. Booth P.C. is a trusted choice for Texans needing help to appeal and negotiate IRS penalties and disputes effectively.
Common IRS Tax Problems That Lead to Appeals
Individuals and Businesses in Texas can pursue a Hearing with the Independent Office of Appeals for several tax issues, including:
- IRS audits resulting in additional tax assessments.
- IRS penalties for late filing, underpayment, or trust fund recovery penalties.
- Collection actions: liens, levies, or wage garnishments.
- Disputes over rejected Offers in Compromise
- Disputes over rejected Installment agreements (payment plans).
- Disputes over allowable deductions, credits, or income recognition.
Although the IRS Appeals process is less formal that Tax Court litigation, the most successful outcomes usually require extensive knowledge of and experience in dealing with the IRS. Done correctly and strategically, however, appealing an IRS penalty or audit result with the Independent Office of Appeals can save taxpayers significant money and protect their financial stability.
IRS Appeals Process in Texas
After the IRS determines the amount of additional tax you owe after an IRS Audit, you will be sent a Notice of Deficiency. If the IRS Collection Office has determined that it will begin aggressive Collection against you or your business, the IRS will send you a letter or Notice of Determination. Once you receive these documents you must quickly decide whether you want to sue the IRS in the U.S. Tax Court, or attempt to settle your tax case with the Independent Office of Appeals.
If you choose to attempt to settle your case with the Independent Office of Appeals, you must comply with certain time requirements. Generally, you must request an Appeals hearing within 30 to 90 days, depending on the notice type. Once IRS Appeals determines that your case qualifies for an Appeals Hearing, you will be contacted by the Appeals Officer (non-collection) or Settlement Officer (collection) assigned to your case. This letter will set a time and date for a meeting with the Appeals Officer (called a Conference) or Settlement Officer (called a Hearing).
A Conference with the Independent Office of Appeals is solely for the purpose of settling your case without going to trial. Although these conferences are informal by design, experience, organization, and strategy are critical to a positive outcome. An Appeals Conference is, in essence, a negotiation, and experience in negotiating with the IRS is critical. The role of a Booth P.C. Texas IRS tax appeals attorney is to assess the strengths and weaknesses of your case, the strengths and weaknesses of the IRS’ findings, negotiating on your behalf, and protecting your rights.
While many audits are resolved after negotiating with the Independent Office of Appeals, there are an equal number of cases that could have been resolved if an experienced representative was involved. You generally only are allowed one hearing with the Office of Appeals and proper preparation is crucial to success.
What documents and evidence are needed for a strong IRS appeal case?
Before the Appeals conference, it is critical that you gather all supporting evidence, tax returns, and documentation you intend to use at the hearing to resolve your case. The types of documents you need depend significantly on the type of Notice or letter you received. For example, if you received a Notice of Deficiency where the IRS has determined you owe additional taxes and penalties because of disallowed deductions, you need documents that prove the deductions were improperly disallowed by the IRS as well as documents that prove that you are not liable for a penalty.
Do I Need an IRS Tax Appeals Attorney in Texas?
Self-representation before the Independent Office of Appeals is possible, but not recommended, for several reasons and there are considerable risks associated with Self-representation. First, as mentioned earlier, you generally only have one opportunity for a conference or hearing with the Independent Office of Appeals. If you are unfamiliar with the process and make a mistake or miss a deadline, there is generally not a second chance available to you. Also, because the purpose of the Appeals Conference is to settle your case, you must be familiar with negotiation in general, and negotiating tax law specifically, to negotiate the best settlement. You have one chance to settle your case with the IRS, make it count by hiring an experienced tax lawyer from Booth P.C.
Booth P.C. has over 15 years of experience in high-stakes IRS Appeals negotiations and deep knowledge of IRS procedures and negotiation tactics. After a careful initial assessment of your case, we immediately take steps to provide protection from procedural mistakes that can prevent the right to an Appeals Conference. After requesting an appeal, our tax lawyer has the expertise and experience to strengthen the taxpayer’s case with evidence and legal arguments that are directly similar to your situation. Booth P.C. is a trusted advisor and zealous advocate for Texas clients in negotaitons with the Independent Office of Appeals and, if necessary, escalation to Tax Court.
From IRS Appeals to Tax Court: What Happens If You Don’t Settle?
Experience has shown that the best IRS Appeals outcomes are achieved with U.S. Tax Court litigation taken into account. Tax Court litigation is the final step for your tax matter when negotiations with the Independent Office of Appeals fail to result in a settlement. This means, however, that strong representation at the Appeals Conference can usually result in a favorable settlement with the IRS through its attorneys in U.S. Tax Court litigation.
Unresolved cases from Appeals can be petitioned to the U.S. Tax Court, where it will be assigned to a tax attorney that represents the Internal Revenue Service. The tax attorneys for the IRS will have access to the Appeals Officer’s file and will generally review it before contacting your attorney. The best settlements are usually reached when you are prepared to litigate your case before the U.S. Tax Court. Both businesses and individuals can achieve favorable settlements with an experienced, skilled attorney representing their interests.
Frequently Asked Questions
When should a Texas taxpayer consider filing an appeal with the IRS?
A Texas taxpayer should consider filing an appeal with the Independent Office of Appeals if they do not agree with the IRS Examination or Collection function and want to negotiate a settlement without a trial.
How do I request an IRS appeal after receiving an audit or collection notice?
You must send a written request to the IRS Office that sent you the letter or Notice you are disputing. The format of the letter and timing of the request depend on several factors, including the type of notice you received and the amount of tax in dispute.
Do I need to pay the disputed tax before filing an IRS Appeal in Texas?
No, you do not need to pay the disputed tax before filing a request for an IRS Appeal, but can do so if you want to reduce or eliminate any potential interest on the tax in dispute.
How long do I have to request an appeal after receiving an IRS decision in Texas?
It depends on the type of Notice or letter you receive but generally 30 or 90 days from the date on the letter or Notice.
What are the chances of successfully reducing or eliminating tax liability through an appeal?
Many cases settle with the IRS Independent Office of Appeals, but you have the best chances of successfully reducing or eliminating your liability when you are represented by an experienced tax lawyer.
Can businesses in Texas also file IRS appeals?
Yes. IRS Appeals hearings are available to virtually all taxpayers, from Individuals, Small-Businesses, and large Corporations/Partnerships.
Do I need an attorney to represent me in an IRS appeal, or can I handle it myself?
You can represent yourself before the Independent Office of Appeals, but it is not advised due to the strict deadlines, complexity of the issues, and the single opportunity for an Appeals Hearing.
How long does the IRS appeals process usually take for Texas taxpayers?
It depends on several factors, including the workload of the Appeals Officer or Settlement Officer, any Court deadlines that may exist in your case, and the complexity of your Tax Issues or Collection action.
Can IRS appeals stop or delay collection actions like levies or liens in Texas?
Yes. Settlement Officers with the Independent Office of Appeals only consider Collection issues, like liens and levies, whereas Appeals Officers consider a variety of Tax matters. This means that your experienced tax attorney can negotiate with a Settlement Officer to stop or delay these kinds of collection actions.
What happens if I lose my case with the IRS Appeals Office?
If you cannot reach a settlement with the Independent Office of Appeals, you can still file a lawsuit against the IRS in the U.S. Tax Court or Federal District Court.