If you have been audited and do not agree with the IRS agent’s proposed changes, you can appeal the agent’s findings.
The IRS tries to settle audit cases at the examination level. Therefore, before filing an appeal we ask to speak with the agent’s group manager or supervisor to discuss the areas of disagreement.
The Procedure for Appealing the IRS’s Findings
If the taxpayer still does not agree with the auditor’s findings after speaking with the group manager, the IRS will issue what is known as a Notice of Deficiency.
The Notice of Deficiency (also called a 90 day letter because it allows taxpayers 90 days to file a United States’ Tax Court petition disputing the findings contained in the Notice) describes in detail all of the adjustments the IRS has made to the taxpayer’s tax return.
After receipt of the Notice of Deficiency, the taxpayer has the right to file a written protest of the findings or a Tax Court petition.
The Written Protest (30 Day Response)
The protest must be filed within 30 days of receipt of the Notice and must contain a detailed description of the adjustments with which the taxpayer disagrees.
After a protest is filed an Appeals officer will be assigned to hear the case.
The United States’ Tax Court Petition (90 Day Response)
Instead of a formal protest, the taxpayer may elect to file a Tax Court petition. The petition must be filed within 90 days of the date of the Notice of Deficiency.
The due date for filing the petition should be stamped in red ink in the upper right hand corner of the Notice.
Once the Petition is answered the case is docketed (put on the Court calendar) and an Appeals officer is assigned to hear the case in the hopes of avoiding a trial.