Securing Higher Grades Costing Your Pocket? Book Your Assignment At The Lowest Price Now!

- +
250 Words
Upload File

    Appealing an IRS audit

    An audit and appeal process within IRS is one of the most dreaded procedures by all taxpayers. It can lead to criminal sanctions, back dating of taxes, penalties, and even interest. However, should you feel unsatisfied with the auditors' findings; you can launch an appeal with the IRS Office of Appeals.

    Benefits of appealing an Audit

    Well, as stated earlier, the appeal can reduce or even eliminate previously assessed taxation, penalties, or both. However, studies indicate that only a negligible percentage of US citizens appeal their audits. The reason behind this is unknown considering that the appeal process is easy and fast. It has no cost implication as well unless the taxpayer engages the services a tax specialist, which most often is unnecessary.

    Interestingly, the stakes of winning the appeal is exceptionally high. According to IRS data, average taxpayers who appeal can anticipate a 40 percent reduction of the total sum assessed by the IRS auditor. The appeal also postpones the due date of the tax bill during the appeal process. This gives the taxpayer enough time to consolidate funds required to offset the assessment or come up with a payment plan.

    Limitations of the appeal

    There are some instances where the appeal may prove detrimental. Although very rare, there are chances that the audit may find other items that the initial auditor missed. However, the safer alternative would be to sue the IRS in a Tax Court if it did not flag the issue on its previous return. This is because there is no profound justification of introducing a new issue at this spot. Despite the fact that, the appeal postpones the tax bill due date, the interest, and penalties will still be accruing. This means that, one may end up paying more should they lose the appeal.

    Process of appealing the audit

    On completion of the audit, the taxpayer receives a comprehensive report from the IRS. The report outlines all proposed evaluations and changes, split into taxes, interest, and penalties. The first step to institute an appeal is to avoid signing the report and returning it as it is. The outcome is a receipt of a 30-day letter detailing how you can launch an appeal. You will then have 30 days from the time the letter is dated to file an official protest. However, you may request for an extension should you be unable to do so within the stipulated time.

    The taxpayer has three options in filing the appeal

    1. The taxpayer can simply make a written request for an appeal via a letter or IRS "Request for Appeals Review" also known as Form 12203 (downloadable from the IRS website) for an appeal if the amount owed is less that USD 2,500.

    2. Write a protest letter titled "small case request' in case the amount owed is between USD 2,500 and 25,000. The letter must include taxpayers contact details, tax ID numbers of all parties involved, declaration of intent and itemized breakdown of all disputed items. Alternatively, the taxpayer can complete Form 12203.

    3. Form 12203 is the only option for taxpayers owing more than USD 25,000.


    In theory, appeal process within IRS can pose severe consequences to taxpayers in some instances. Most of those who come out of it have a better chance of their audits been reversed. You may learn more about audit and appeal process within IRS, from

    Our Amazing Features

    • On Time Delivery

    • Plagiarism Free Work

    • 24 X 7 Live Help

    • Services For All Subjects

    • Best Price Guarantee

    Live Reviews

    Ashley 02 Aug 2021

    I was not able to concentrate on academics and co-curricular activities all at once and hence I decided to seek professional assistance. The expert writers took care of my essay report so well as if it was their own. So no complaints at all!

    IOT 02 Aug 2021

    The service solution is extremely flexible that helps students to procure services anytime as they need one. I could connect to them at any time of the day which made me feel calm and relaxed.

    Ariella 02 Aug 2021

    My parents have been really happy with my academic performance lately, and all thanks to the team offering excellent support and academic help. Easy availability and a true choice of students around the world!

    Norah 02 Aug 2021

    I got a bonus mark this semester due to offering an error-free thesis. My examiner was so impressed with my assignment that she offered me a bonus mark which further boosted my grade.

    View All Reviews