THE ADMINISTRATIVE APPEALS PROCESS
If you’ve been hit with an assessment from the IRS, for instance, as the result of an audit and you disagree with the results, you are entitled to present your case in Tax Court. However, an IRS administrative appeal may produce desirable results without the need to go to court. As a taxpayer, you are entitled to dispute the results of an IRS assessment through the administrative appeal process for any reason other than religious, moral or political, conscientious objections. At Harrison Tax Resolution our professionals can determine whether an administrative appeal is the right course for your situation.
IRS Administrative Appeal Categories
The IRS Appeals division operates as a separate entity from IRS offices that conduct investigations. The two types of administrative appeals available are Collections Appeal Process (CAP) or Collections Due Process (CDP) hearings. Administrative appeal hearings may be conducted by mail, telephone or in person. You may represent yourself or be represented by an accountant, attorney or individual enrolled to practice before the IRS. If your tax return was prepared by a third party who is not enrolled with the IRS, he or she may be a witness, but may not represent you.
Submitting Your Request for Administrative Review
For assessments resulting from an audit of less than $2,500, you may approach the auditor directly or submit your request through the appeals system. Protests involving assessments of less than $25,000 may be submitted as a Small Case Request. Use Form 12203 – Request for Appeals Review, available from the IRS website, or the form referenced by your assessment. You may substitute a written statement including the items to which you disagree and your reasons for disagreement. Assessments of $25,000 or more require a Formal Written Protest including all of the following items.
- Your name, address, and a daytime telephone number.
- A statement of intent to appeal the IRS findings to the Office of Appeals.
- A copy of the letter showing the proposed assessment.
- The tax period(s) or year(s) involved.
- A detailed description of each item with which you disagree.
- The reason(s) for your disagreement for each item.
- Facts supporting your position for each item.
- Any law or legal authority that supports your position on each item.
- The following penalties of perjury statement stated exactly: “Under the penalties of perjury, I declare that the facts stated in this protest and any accompanying documents are true, correct, and complete to the best of my knowledge and belief.”
- Your signature beneath the penalties of perjury statement.
If your request for appeal is prepared by your representative, he or she must substitute the declaration for penalties of perjury statement for individual taxpayers with a statement that includes each of the following elements:
- An affirmation that he or she submitted the protest and any accompanying documents, AND
- A statement of personal knowledge of stated facts in the protest and accompanying documents and a declaration that the facts are true and correct.