How to Appeal an IRS Audit
The IRS Audit Appeals Process
The IRS audit appeals process is actually quite simple. When the auditor completes his report, you have the opportunity to review, ask questions and you will likely be asked for your signature. If you think that you may appeal, it is advisable not to sign at that time and protect your right to appeal.
It is always possible that an auditor can make a mistake, so you should review the report very carefully as you decide whether to appeal. If you elect to pursue an appeal, you can write a letter—called a protest letter—and send it to your local IRS director. At that time, you should compile all of your paperwork and documentation to support your appeal. You have the right to see the auditor’s records, so you can also request access to these (under the Freedom of Information Act). Being clear on your point(s) of appeal is a crucial part of the process.
Getting Help With Your Appeal
If you have not done so already, this is also the ideal time to determine if you need the help of a tax professional. A tax professional will have detailed and current information on specific tax laws and will be able to give you a good idea about the strength of your appeal.
Pros and Cons: How To Decide Whether to Appeal?
The benefits of appealing an audit are simple: an appeal can buy you time before you are required to pay the audit tax bill. This can give you time to explore payment options, or save some money to pay the debt if you have to. In addition, it does not cost anything to appeal so you have nothing to lose. Data of audit appeals suggests that most appeals actually result in some reduction of the overall tax bill. Most often, however, you still are on the hook for some portion of the payment. But an appeal can certainly be a very worthwhile thing for you to do.
What are the potential negative implications of appealing an audit? Well, to be honest they are not likely to outweigh the benefits. You could accrue more interest while the appeals process is running its course, but that may be less than the amount you will save with the audit.
Success Tax Relief: Audit Appeal Experts
Success Tax Relief has an excellent track record of helping clients with complicated audit appeals. Our team of experienced professionals has knowledge of all of the latest tax laws and can help you form the strongest possible appeal. Give us a call at 1-877-968-6638 today to get started and put this audit process behind you!