Appealing Examination Issues

Before you prepare a request for Appeals, refer to the Appeals homepage to decide if Appeals is the place for you.  If you decide you want to present your dispute to Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter.

Preparing A Request For Appeals

Small Case Request

You prepare a small case request instead of a written protest if the total amount for any one tax period is $25,000 or less.

• Send a letter requesting Appeals consideration.
• Indicate the changes you do not agree with and the reason you don’t agree.

For specific guidance in preparing a small case request/protest, refer to Form 12203, Request for Appeals Review.

Formal Written Protest

Prepare a formal written protest for all of the following situations:

• If the total amount for any one tax period is greater than $25,000.
• Employee plan and exempt organization cases without regard to the dollar amount at issue.
• Partnership and S corporation cases without regard to the dollar amount at issue.

To prepare a formal written request for Appeals you must:

• Include your name, address, social security number, and daytime telephone number.
• Include a statement that you want to appeal the IRS findings to the Appeals office.
• Include a copy of the letter showing the proposed changes and findings you don’t agree with (or the date and symbols from the letter).
• Indicate the tax periods or years involved.
• List all the changes you do not agree with and why you don’t agree.
• State the facts supporting your position on any issue that you do not agree with.
• Cite the law or authority, if any, on which you are relying.
• Sign the written protest under the penalties of perjury.

You can represent yourself in Appeals, and you may bring another person with you to support your position. If you want to be represented by someone, the person you choose to represent you must be an attorney, a certified public accountant, or an enrolled agent authorized to practice before the IRS. If you plan to have your representative talk to us without you, we need a copy of a completed power of attorney Form 2848, Power of Attorney and Declaration of Representative

Appealing Collection Issues

Before you prepare a request for Appeals, refer to the Appeals homepage to decide if Appeals is the place for you. Select the appropriate appeal procedure for specific instructions on preparing your request for Appeals.  If you decide you want to present your dispute to Appeals, you will need to prepare a request for Appeals and mail it to the office that sent you the decision letter. Make sure you discuss this appeal process with a tax professional.

Our office represented hundreds of  clients on their appeals with the IRS. Please contact us at 562-868-6333 to see if Appeals would be the best approach for you.

Collection Appeals Program (CAP)
Collection Appeals Program (CAP) is generally quick and available for a broad range of collection actions. However, you can’t go to court if you disagree with the Appeals decision.

Collection Due Process (CDP)
Collection Due Process (CDP) is available if you receive one of the following notices:
Notice of Federal Tax Lien Filing and Your Right to a Hearing Under IRC 6320 (Lien Notice), a Final Notice – Notice of Intent to Levy and Notice of Your Right to A Hearing, a Notice of Jeopardy Levy and Right of Appeal, a Notice of Levy on Your State Tax Refund – Notice of Your Right to a Hearing (Levy Notices), and a Notice of Levy and Notice of Your Right to a Hearing. If you disagree with the Appeals decision, you may be able to take your case to court.

Offer in Compromise (OIC)
An Offer in Compromise (OIC) is an agreement between the taxpayer and the government that settles a tax liability for payment of less than the full amount owed.

Trust Fund Recovery Penalty (TFRP)
If you are a person responsible for withholding, accounting for, or depositing or paying specified taxes including non-resident alien (NRA) withholding and employment taxes, and willfully fail to do so, you can be held personally liable for a penalty equal to the full amount of the unpaid trust fund tax, plus interest. A responsible person for this purpose can be an owner or officer of a corporation, a partner, a sole proprietor, or an employee of any form of business. A trustee or agent with authority over the funds of the business can also be held responsible for the penalty.

Letters and Notices Offering an Appeal

 

---

Examination Letters

---

 

Letter 525 – General 30 Day Letter
This letter accompanies a report giving you a computation of the proposed adjustments to your tax return. It informs you of the courses of action to take if you do not agree with the proposed adjustments. The letter explains that if you agree with the adjustment, you sign and return the agreement form. If you do not agree, you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter or referenced publications explain how to file a protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

Letter 531 – Notice of Deficiency
This letter is notice of the Commissioner’s determination that you owe additional tax or other amounts for the tax year(s) identified in the letter. The Internal Revenue Code authorizes the Commissioner to send this notice. The letter explains how to dispute the adjustments in the notice of deficiency if you do not agree. To dispute the adjustments without payment, you file a petition with the Tax Court within 90 days from the notice date.

Letter 692 – Request for Consideration of Additional Findings
This letter accompanies a report giving you a computation of the proposed adjustments to your tax return. It informs you of the courses of action to take if you do not agree with the proposed adjustments. The letter explains that if you agree with the adjustment, you sign and return the agreement form. If you do not agree, you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter or referenced publications explain how to file a protest. You need to file your protest within 15 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

Letter 1153 – Trust Funds Recovery Penalty Letter
This letter explains that the IRS’s efforts to collect the federal employment or excise taxes due from the business named on the letter have not resulted in full payment of the liability. Therefore, the IRS proposes to assess a penalty against you. If you agree with this penalty for each tax period shown, you are asked to sign Part 1 of the enclosed Form 2751 and return it to the person/office that sent you the letter. If you do not agree you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter or referenced publications explain how you file a protest. You need to file your protest within 60 days from the date of the letter in order to appeal this decision with the Office of Appeals.

Letter 1389 – 30 Day Letter, Tax Shelter Activity
This letter accompanies a report giving you a computation of the proposed adjustments the IRS made to your tax return because of your tax shelter activity. It informs you of the courses of action to take if you do not agree with the proposed adjustments. The letter explains that if you agree with the adjustment, you sign and return the agreement form. If you do not agree, you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter or referenced publications explain how you file a protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

Letter 3016 – IRC Section 6015 Preliminary Determination Letter (30 Day)
This is a preliminary letter giving you 30 days to appeal the determination for innocent spouse relief under IRC Section 6015. The letter explains that if you do not agree with the determination you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter explains how you file a protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

Letter 3391 – 30-Day Nonfiler Letter
This letter advises you the IRS believes you are liable for filing tax returns for the periods identified in the letter. It includes a report giving you a computation of the proposed adjustments to your tax return and explains the adjustments. The letter explains that if you agree with the adjustments, you sign and return the agreement form. If you do not agree, you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter or referenced publications explain how to file a protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

Letter 3727 – 30-Day Letter Notifying Taxpayer No Change to Original Report Disallowing EIC Based on Failure to Meet Residency Test for Children Claimed
This letter explains why the IRS will not allow your earned income credit (EIC). The letter explains that if you agree with the adjustment, you sign and return the agreement form. If you do not agree, you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter or referenced publication explains how to file a protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

Letter 3728 – 30-Day Letter Notifying Taxpayer No Change to Original Report Partially Disallowing EIC Based on Failure to Meet Residency Test for 1 Child
This letter explains why the IRS can only give you part of your earned income credit (EIC). The letter explains that if you agree with the adjustment, you sign and return the agreement form. If you do not agree, you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter or referenced publication explains how to file a protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

 

---

Collection Letters

---

 

Letter 11 – Final Notice of Intent to Levy and Notice of Your Right to a Hearing
This letter is to notify you of your unpaid taxes and that the Service intends to levy to collect the amount owed. The letter and referenced publications explain how to request an appeal if you do not agree. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your levy notice within 30 days from the date of the letter in order to appeal the proposed action with the Office of Appeals.

Letter 1058 – Final Notice Reply Within 30 Days
This letter is to notify you of your unpaid taxes and that the Service intends to levy to collect the amount owed. The letter and referenced publications explain how to request an appeal if you do not agree. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your levy notice within 30 days from the date of the letter in order to appeal the action with the Office of Appeals.

Letter 1085 – 30-Day Letter Proposed 6020(b) Assessment
This letter is to notify you of your unpaid taxes and that the Service intends to levy to collect the amount owed. The letter and referenced publications explain how to request an appeal if you do not agree. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your levy notice within 30 days from the date of the letter in order to appeal the action with the Office of Appeals.

Letter 3172 – Notice of Federal Tax Lien Filing and Your Rights to a Hearing under IRC 6320
This letter is to notify you the IRS filed a notice of tax lien for the unpaid taxes. If you do not agree you can request appeals consideration within 30 days from the date of the letter. The letter and publications explain how to request a hearing from Appeals. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your lien notice within 30 days from the date of the letter in order to appeal the action with the Office of Appeals.

Notices

CP 90 – Final Notice of Intent to Levy
CP 90 notifies you of your unpaid taxes and that the IRS intends to levy to collect the amount owed. This notice and referenced publications explain how to request an appeal if you do not agree. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your levy notice within 30 days from the date of the letter in order to appeal the action with the Office of Appeals.

CP 92 – Notice of Levy upon Your State Tax Refund
CP 92 notifies you that the IRS levied your state tax refund to pay your unpaid federal taxes. This notice and referenced publications explain how to request an appeal if you do not agree. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your levy notice within 30 days from the date of the letter in order to appeal the action with the Office of Appeals.

CP 242 – Notice of Levy upon Your State Tax Refund
CP 242 notifies you that the IRS levied your state tax refund to pay your unpaid federal tax. This notice and referenced publications explain how to request an appeal if you do not agree. You need to file a Form 12153, Request for A Collection Due Process Hearing and send it to the address shown on your levy notice within 30 days from the date of the letter in order to appeal the action with the Office of Appeals.

CP 523 – IMF Installment Agreement Default Notice
CP 523 notifies you that the IRS intends to terminate your installment agreement in 30 days. You have the right to request an appeal if you do not agree by following the instructions in the notice.

CP 2000
You receive this letter when the IRS receives income, deduction or credit information that does not match your return. You are provided a computation of the proposed adjustments to your tax return based upon this information. If you agree, you sign and return the agreement forms. If you do not agree, you can submit a request for appeal/protest to the office/individual that sent you the letter. The letter explains how to file a protest. You need to file your protest within 30 days from the date of this letter in order to appeal the proposed adjustments with the Office of Appeals.

Publications and Forms About Your Appeal Rights

---

Publications

 

---

Publication 1, Your Rights As a Taxpayer
Informs taxpayers of their rights, and includes information on the examination process and the collection process. It is included in selected first-contact examination and collection notices.

 

Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don’t Agree
Provides information on your examination appeal rights and how to prepare a protest if you disagree with the findings of an Internal Revenue Agent in an examination report.

Publication 594, What You Should Know About The IRS Collection Process
Explains the steps the IRS may take to collect overdue taxes. It includes a summary of your rights and responsibilities related to the paying of federal taxes.

Publication 1660, Collection Appeal Rights
Advises taxpayers of their appeal rights concerning the Collection Due Process & Collection Appeal Program. It further explains the collection issues that can be appealed and how to appeal them.

Publication 3498 & 3498A,The Examination Process
These publications explain the audit process from the initiation of the examination through the overview of the collection process, including appeals options.

Publication 4165, An Introduction to Collection Due Process Hearings
Describes the Appeals Mission, Expectations for Appeals and responsibilities of Taxpayers requesting Collection Due Process (CDP) hearings, and what Appeals considers in CDP hearings.

Publication 4167, Appeals – Introduction to Alternative Dispute Resolution
Describes the Fast Track Mediation, Fast Track Settlement and Post-Appeals Mediation programs.

Publication 4227, Overview of the Appeals Process Brochure
Explains the mission, overview, and expectations of the appeal process to the taxpayers.

---

Forms

 

---

Form 656, Offer in Compromise
A Form 656 is used to make an offer to compromise your liability for payment of less than the full amount owed.

 

Form 843, Claim for Refund and Request for Abatement
A Form 843 is submitted to claim a refund (or abatement) of certain overpaid (or over-assessed) taxes, interest, penalties, and additions to tax.

Form 2751, Proposed Assessment of Trust Fund Recovery Penalty
A Form 2751 is used to show the corporate liability data for a proposed trust fund recovery penalty assessment.

Form 8836, Qualifying Children Residency Statement
A Form 8836 is filed with the IRS to show that you and your qualifying child meet the residency test for the earned income credit (EIC).

Form 9423, Collection Appeal Request
A Form 9423 is used to appeal a collection action. Using this form, you may request an appeal of the following actions: notice of federal tax lien, levy, seizure, or termination of an installment agreement.

Form 12203, Request for Appeals Review
This form can be used to request an Appeals review of a proposed IRS adjustment of $25,000 or less per tax year or period.

Form 12153, Request for a Collection Due Process Hearing
A Form 12153 is used to request a collection due process hearing under IRC 6320 and IRC 6330.

Form 12509, Statement of Disagreement
You can use this form to explain why you disagree with the Internal Revenue Service (IRS) Determination concerning relief from joint and several liability for a joint return under Internal Revenue Code sections 6013(e), 6015(b), 6015(c), or 6015(f) in the letter you received with this form.