If you feel that the IRS has done injustice to you during your tax audit, or calculation of your taxes, or has been too harsh in levying penalties, then you could go in for an appeal against their decision. With the right information and the right professionals backing you, getting an appeal in your favor is possible.
When you get a final notice on any of the above problems, you will also get a right to appeal along with it. You can exercise that right. Hire a Tax Attorney who has experience in handling appeals. Get a cross check done if you are hiring a new Tax Attorney. Your Tax Attorney should have knowledge about the correct documents needed to win this appeal, hence saving you a lot of time. You can send the IRS a letter, protesting their decision and a request for a hearing. This normally takes around 90 days and if you do not get a date within that time, then you can also give them a reminder. This move has already started saving you money since you will not have to pay any taxes for the next 2 or 3 months. Even if do not win your case fully, you can still save some amount if you get some relief in your appeal.
The next step is in getting your documents ready to get the appeal decided in your favor. Through your Tax Attorney, you could also request your IRS tax auditor's file under the Freedom Of Information Act. This will provide you with the reason for the notice. Take heart in the fact that most of the appeals end up with the taxpayer being satisfied emotionally or financially.
Send all the documents by registered mail and file the receipts and acknowledgments related to the appeal in a separate folder, which can be accessed easily for future reference. The IRS will then process your appeal request and provide you a date and place for the meeting. You will have to prepare all the necessary documents with your tax attorney. On the decided date, you along with your tax attorney will have to meet the IRS Appeals Officer in his office and if everything goes well, you can settle for a compromise figure right there.
That will entail you to sign up IRS Form 870, which basically means that you agree to pay the compromised amount and you will not put up a challenge regarding that particular case, in future. In case you and your IRS Appeals Officer cannot agree on a figure, then you will have to take the matter to court, which can be a long drawn battle. Take this step only after seriously considering the pros and cons of your case and after discussing it with your tax attorney.
You can deal with an IRS appeal yourself, but if you are not aware of all the clauses, then it is better to hire the services of an efficient Tax Attorney. A Tax Attorney will also indicate to your IRS Appeals Officer that you too are serious about solving your tax problem as early as possible