What to Do When Your Tax Appeal is Your Last Defense Against IRS Actions?

Confronting the Internal Revenue Service (IRS) can make you feel powerless, especially when faced with severe actions.

The IRS can put liens and levies on your assets which can devastate your finances. This, in turn, leaves you in a precarious position. When all other relief options are exhausted, a tax appeal may be your last chance to protect your assets and financial future.

Taking fast and informed action can help you halt these measures and resolve your tax issues more favorably. This guide will walk you through the critical steps to take when a tax appeal is your final defense against the IRS.

Why are Tax Appeals Important to Resolve Your IRS Debt?

A tax appeal serves as a crucial lifeline for taxpayers facing severe IRS actions. It is not merely a procedural formality but a strategic opportunity to address and resolve tax disputes. IRS tax appeals provide taxpayers with a platform to contest IRS decisions and seek a more favorable resolution.

Filing a tax appeal can halt or delay aggressive IRS actions at its disposal. This includes the following:

• Tax Liens

• Tax Levy

• Wage Garnishments

• Audits and Assessments

• Criminal Investigations

This allows individuals and businesses to gather the required documentation, seek professional advice, and plan their defense effectively without the immediate pressure of enforced collections. 

Our expert tax appeal attorneys excel in resolving IRS appeals, securing the relief you deserve. Call us at (888) 342-9436 for free consultation 

Steps to Steer Through the IRS Appeals Process

Precision in preparation is key when dealing with IRS appeals.

The tax appeals process is inherently complex and demands attention to detail. It’s crucial to approach this process with urgency and thorough preparation. Taking the right steps can significantly improve your chances of a successful appeal. 

Here’s how you can do it:

Review the IRS Notice and Gather Documents

The first step in the appeals process is to review the IRS notice (IRS Notice of Deficiency) you received from the IRS. Make sure that you pay attention to the type of action the IRS is taking against you. Usually, the tax assessment notice will provide a detailed explanation of why the IRS is taking action. Understanding these reasons will help you build a strong case.

After this, you will need to prepare the necessary documentation to support your case. Listed below are the following tax-related papers to present to the IRS:

• Financial Records (i.e. bank statements, pay stubs, income, and expenses).

• Copies of your previous tax returns

• IRS correspondence such as letters, notices, or communications you have received

• Supporting evidence like receipts, invoices, or third-party statements.

Note: Pay close attention to the deadlines indicated. Missing a deadline can result in losing your right to appeal or worse additional penalties.

Consult a Tax Appeal Lawyer for Expert Guidance

Tax appeal attorneys – especially from J. David Tax Law – specialize in dealing with the IRS. They are known to provide invaluable support throughout the IRS appeals process to provide favorable tax debt resolution. Here’s what they can offer:

• deep understanding of tax laws and IRS procedures, 

• expert advice tailored to your specific situation, 

• ensuring you are well informed about your rights and options

Moreover, tax debt attorneys can represent you in communications with the IRS. This includes hearings and meetings with appeals officers to reduce penalties or propose alternative payment arrangements. 

Did you know our client was facing a massive $917,667 tax liability from New York State for assessments spanning 2015-2017? Through diligent efforts, our tax audit attorneys successfully eliminated the entire liability. Call us at (888) 342-9436 to find out how. 

Choosing the Right Appeal Process

Selecting the appropriate appeal process is crucial as it determines how effectively you can challenge the IRS action. The type of appeal you choose depends on the specific IRS action you are disputing and your circumstances. Here are some options:

• Collection Appeals Program (CAP) – Used to dispute IRS collection actions such as liens, levies, and seizures. This can be requested before or after the IRS takes a collection action.

• Collection Due Process (CDP) Hearing – Available if you receive a notice of federal tax lien or a notice of intent to levy. This option Allows you to appeal the lien or levy and propose alternative solutions.

• Audit Reconsideration – Suitable if you disagree with the results of an IRS audit. You can leverage this to present new information that was not considered during the original audit.

• Offer in Compromise – Used when you believe you do not owe the amount the IRS claims. It proposes a settlement amount based on doubt about the accuracy of the tax debt.

Completing and Submitting the IRS Appeal Forms

Each appeal process has specific forms that must be accurately completed and submitted. Ensuring that you fill out these forms correctly and provide all necessary documentation is crucial for a successful appeal. 

Here’s a list of appeal forms needed based on your chosen process:

• IRS Form 12153 for CDP Hearings

• IRS Form 9423 for CAP

• Form 656 for Offer in Compromise

Double-check all information and attach the necessary documentation. Forms can typically be submitted by mail, fax, or online. Follow the instructions provided by the IRS for your specific appeal.

Initial IRS Tax Appeal Review

Once your petition for appeal is submitted, the IRS will conduct an initial review to determine if it meets the criteria for further consideration. This stage involves a thorough examination of your notice of appeal. This is to ensure that all necessary information and documentation are included and that the appeal has been filed correctly. 

During this review, the IRS will assess the validity of your arguments and the evidence provided. There are several possible outcomes of this initial review.

• The IRS may accept your appeal. This indicates that it will move forward to a more detailed examination and potentially a hearing. 

• Alternatively, the IRS may reject your appeal if it does not meet specific criteria or lacks sufficient documentation. 

• In some cases, the IRS may request additional information or clarification regarding your appeal. 

It is crucial to respond promptly to any such requests to avoid delays and to ensure that your appeal remains active. 

Communicating with the IRS Appeals Officer

Effective communication with the IRS Appeals Officer is crucial and should be handled by your tax appeal attorney. 

Ensure that all interactions are clear, concise, and respectful. Your lawyer will explain your position. Tax appeal attorneys may also highlight key points and evidence supporting your appeal, and provide any additional documentation. 

Being prepared to answer questions and clarify issues will help present a case effectively and increase the chances of a favorable outcome.

Preparing for a Hearing (if applicable)

If your appeal involves a written hearing or an IRS due process hearing, proper preparation is essential. Hearings can be conducted in person, by telephone, or through correspondence. This provides you with the opportunity to present your case and discuss possible resolutions. 

Organize your documents and prepare a clear, concise presentation. Anticipate questions and practice your responses with your tax appeal lawyer. This ensures that your arguments are effectively communicated and that you are prepared for the hearing.

Conclusion

A successful tax appeal isn’t just about immediate relief; rather, it’s about securing your long-term financial health. By navigating the appeals process, you can resolve outstanding issues and avoid future complications. 

Make sure to review your IRS notice carefully, adhere to all deadlines, and submit accurate and complete forms. By acting promptly and methodically, you can take control of the situation and increase your chances of a favorable resolution. 

If you’re facing IRS actions and need expert assistance with your tax appeal, contact J. David Tax Law today. Don’t let procrastination jeopardize your financial stability—take action now to protect your rights and interests.