bake - May 2012 - 12

tax tips

How to Appeal Disputes
So, now you’ve ﬁled your business taxes, but your worst nightmare arrives in the form of an official letter from the IRS stating that you owe more. Here’s where to start. The appeals mission is to resolve tax controversies, without litigation, on a basis that is fair and impartial to both the government and the taxpayer, in a manner that will enhance voluntary compliance and public conﬁdence in the integrity and efficiency of the service, according to the IRS. The appeals process is the place for you if you received an IRS correspondence explaining you have the right to come to appeals to dispute an IRS decision, and you do not agree and are not signing an agreement form sent to you. You are ready to request an appeals conference or hearing if you can explain why you disagree. Consider the following: 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. 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. • If you need help in deciding whether the IRS made an incorrect decision due to misinterpreting the law, check the publications discussing your issue for additional information. • If you believe the IRS did not properly apply the law due to a misunderstanding of the facts, be prepared to clarify and support your position. • If you believe the IRS is taking an inappropriate collection action against you, or you do not agree with collection’s denial of your offer in compromise, select the appropriate appeal procedure for speciﬁc instructions on preparing your 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.

• 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. • Above all, if you believe the facts used by the IRS are incorrect, then you should have records or other support available to back up your position.

12 < MAY 2012 | bakemag.com

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bake - May 2012

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