As a taxpayer, you are entitled to a fair and impartial administrative appeal of most IRS decisions. This includes many IRS-related penalties. Essentially, it is within your rights to expect and receive a written response regarding the decision from the IRS Independent Office of Appeals.
The Independent Office of Appeals is separate from the IRS office that will review your case. The Independent Office of Appeals will not discuss a case with the IRS if the communication appears to compromise the independence of an appeal.
Your Right to Appeal
Keep these items in mind regarding your right to appeal the IRS’ decision:
- You can dispute a proposed adjustment before you pay tax from an IRS statutory notice of deficiency letter that proposes additional tax. However, once you receive the notice, you need to file a petition to the U.S. Tax Court disputing the adjustment as soon as possible.
- If the IRS makes a decision that you disagree with, you should refer to Publication 5, Your Appeal Rights and How to Prepare a Protest If You Don’t Agree.
- Another option is to file a refund suit in either a U.S. District Court or the U.S. Court of Federal Claims. To do so, you must meet at least one of three requirements:
- You have fully paid your tax due, and the IRS denied your tax refund claim.
- No action has been taken in terms of your refund claim within six months.
- Two years have passed since the IRS mailed you a notice of its decision to deny your refund.
Know Your Rights
For an exact copy of your rights when appealing IRS decisions, refer to Publication 1, Your Rights as a Taxpayer. It explains your rights as a taxpayer, as well as the processes to expect when it comes to examination, appeals, collections, and refunds.
If you learn you are responsible for paying a tax penalty to the IRS, you should review the Taxpayer Advocate Service, an independent organization within the IRS. The Taxpayer Advocate Service ensures that all taxpayers are treated fairly and understand their rights as taxpayers. The organization includes many IRS advocates who can help you resolve problems.
If you, your spouse, or former spouse is either partially or fully responsible for the unpaid tax, you should seek professional guidance from certified and experienced tax advisers. They can provide insight into your rights when appealing an IRS decision.