Receiving a decision from the IRS that you disagree with can be frustrating—and sometimes intimidating. But an IRS decision isn’t always the end of the road. In many situations, taxpayers have the right to appeal an IRS decision and have their case reviewed by the IRS Independent Office of Appeals.

Appeals may be available for disagreements involving audits, penalties, tax liabilities, collection actions, rejected Offers in Compromise, and other IRS determinations.The key is understanding your rights, responding by the applicable deadline, and providing information that supports your position.

Do Taxpayers Have the Right to Appeal?

Yes. The IRS Taxpayer Bill of Rights includes The Right to Appeal an IRS Decision in an Independent Forum.

Taxpayers are generally entitled to a fair and impartial administrative appeal of most IRS decisions, including many penalties.

The IRS Independent Office of Appeals is separate from the IRS office that initially handled the case. Its role is to help resolve tax disputes without requiring taxpayers and the government to immediately go to court.

What Types of IRS Decisions Can Be Appealed?

Appeal rights depend on the specific situation and notice received, but taxpayers may have appeal options involving matters such as:

• Proposed changes resulting from an IRS audit
• Certain IRS penalties
• Federal tax liens
• Proposed or actual levies
• Rejected Offers in Compromise
• Rejected, modified, or terminated installment agreements
• Certain collection actions
• Other IRS determinations that specifically provide appeal rights

Not every IRS letter automatically provides the same appeal rights. Carefully reviewing the notice you receive is extremely important.

How Do You Know If You Can Appeal?

Your IRS letter or notice is usually the best place to start.

If the IRS has made a decision that provides appeal rights, the correspondence should generally explain:

• What the IRS decided
• Why the IRS made the decision
• Whether you have the right to appeal
• How to request an appeal
• Which forms or documents may be required
• The deadline for responding

Do not ignore the deadline shown on an IRS notice.

Different types of appeals have different deadlines, and missing one can significantly affect the options available to you.

How Does an IRS Appeal Work?

The exact procedure depends on the type of dispute, but an appeal may require a written protest or another specific request.

Generally, you will need to explain:

• Which IRS findings or decisions you disagree with
• Why you disagree
• The facts supporting your position
• Relevant records and documentation
• Applicable tax law or other authority, when appropriate

Your appeal request should generally be sent to the IRS office identified in the letter providing your appeal rights—not directly to the Independent Office of Appeals unless your instructions specifically say otherwise.

The IRS office that made the original determination may first review your protest and attempt to resolve the disagreement. If it cannot be resolved, the case can then be forwarded to Appeals.

What Happens During the Appeals Process?

Once your case reaches the Independent Office of Appeals, an Appeals employee reviews the disputed issues.

The goal is to provide an independent review and, when possible, resolve the disagreement without litigation.

Depending on the case, an Appeals conference may take place by telephone, video, correspondence, or another appropriate method.

You should be prepared to clearly explain your position and provide documentation supporting your argument.

How Long Do You Have to Appeal?

This is one of the most important questions—and there isn’t one deadline that applies to every IRS appeal.

For many examination-related appeal opportunities, taxpayers are given 30 days from the date of the applicable letter to submit their protest.

Other situations have different deadlines.

For example, certain Collection Due Process requests involving a final notice of intent to levy or notice of a federal tax lien generally have a 30-day deadline.

A rejected Offer in Compromise generally provides 30 days from the date of the rejection letter to request an appeal.

Because deadlines vary, always follow the instructions and date provided on the specific IRS notice you received.

What Is a 30-Day Letter?

After an IRS examination, you may receive what is commonly referred to as a 30-Day Letter.

This correspondence generally explains the proposed changes to your tax return and provides an opportunity to request consideration by the Independent Office of Appeals if you disagree.

For example, IRS Letter 525 is a General 30-Day Letter used in examination cases.

If you want to appeal the proposed adjustments, you generally need to submit your request within the timeframe stated in the letter.

What Is a Notice of Deficiency?

A Notice of Deficiency is different from a typical 30-Day Letter.

This notice tells you that the IRS has determined that you owe additional tax.

In many cases, a taxpayer who receives a Notice of Deficiency has 90 days from the date of the notice to file a petition with the United States Tax Court to dispute the proposed tax before paying it.

The exact deadline appears on the notice and should be taken very seriously.

Missing a Tax Court deadline can significantly change your available options.

Can You Appeal an IRS Levy or Tax Lien?

Potentially, yes.

Taxpayers may have appeal rights involving certain IRS collection actions, including:

• Federal tax liens
• Proposed levies
• Actual levies in certain circumstances
• Seizures
• Installment agreement decisions

Two important IRS collection appeal procedures are the Collection Due Process (CDP) program and the Collection Appeals Program (CAP).

The procedures, deadlines, and rights associated with these programs are different, so determining which process applies to your situation is important.

What Is a Collection Due Process Hearing?

A Collection Due Process hearing may be available when the IRS sends certain notices involving liens or intended levy actions.

For a timely CDP request, taxpayers generally must submit Form 12153, Request for a Collection Due Process or Equivalent Hearing, within the deadline stated on the notice—commonly 30 days.

Depending on the circumstances, a CDP hearing may allow taxpayers to discuss collection alternatives such as:

• Installment agreements
• Offers in Compromise
• Other appropriate collection alternatives
• Whether certain collection actions are appropriate

In limited circumstances, taxpayers may also be able to challenge the existence or amount of the underlying tax liability.

Can You Appeal a Rejected Offer in Compromise?

Yes, in many cases.

If the IRS rejects your Offer in Compromise, the rejection letter generally explains your appeal rights.

Taxpayers generally have 30 days from the date of the rejection letter to request an appeal.

This deadline is another reason why IRS correspondence should never be left unopened or ignored.

What Evidence Should You Have for an Appeal?

An appeal is much stronger when your position is supported by organized documentation.

Depending on the dispute, useful records might include:

• Tax returns
• Bank statements
• Receipts
• Invoices
• Payroll records
• Business records
• Contracts
• Mileage logs
• Proof of payments
• Correspondence with the IRS
• Other documentation supporting your position

Simply telling the IRS that you disagree may not be enough. You should be prepared to explain why the determination is incorrect and provide evidence supporting your position.

Can Someone Represent You During an IRS Appeal?

Yes.

Taxpayers can represent themselves, or they may be represented by an authorized tax professional.

Depending on the circumstances, eligible representatives can include:

• Attorneys
• Certified Public Accountants (CPAs)
• Enrolled Agents (EAs)
• Other individuals authorized under applicable IRS rules

When an authorized representative will act for you before the IRS, Form 2848, Power of Attorney and Declaration of Representative, may be required.

What If You Simply Can’t Afford to Pay?

An appeal isn’t necessarily the appropriate process simply because you cannot afford to pay your tax bill.

If you agree that you owe the tax but cannot pay it in full, other IRS resolution options may be more appropriate.

Depending on your circumstances, those options could potentially include:

• An installment agreement
• An Offer in Compromise
• Currently Not Collectible status
• Other available collection alternatives

The right solution depends on whether you disagree with the IRS’s decision, cannot pay the amount owed, or both.

What If You Lose Your IRS Appeal?

An unfavorable Appeals decision does not necessarily mean every option has been exhausted.

Depending on the type of case and where you are in the process, additional options may include pursuing the matter in the United States Tax Court or another federal court.

Court deadlines and jurisdictional requirements can be strict, so professional guidance may be particularly important at this stage.

Don’t Ignore an IRS Notice

One of the biggest mistakes taxpayers can make is putting an IRS letter aside because they don’t understand it or are afraid of what it says.

Doing nothing can allow an important appeal deadline to expire.

If you receive an IRS notice:

1. Open it immediately.
2. Identify what the IRS is proposing or requesting.
3. Find the response or appeal deadline.
4. Gather supporting documentation.
5. Determine whether you agree or disagree.
6. Get professional help when necessary.

Disagree With the IRS? PFGTAX Can Help

An IRS decision can feel final, but taxpayers have important rights—including the right to challenge the IRS’s position and, in many cases, seek an independent appeal.

PFGTAX provides IRS audit representation and tax resolution assistance to help taxpayers understand IRS notices, organize supporting documentation, evaluate available options, and respond appropriately.

The most important thing is not to wait. Appeal and court deadlines can be short, and the options available to you may depend on responding on time.

Received an IRS decision you disagree with? Contact PFGTAX as soon as possible to review your notice and determine what options may be available.

This article is intended for general educational purposes and should not be considered individualized tax or legal advice. IRS appeal rights, procedures, and deadlines depend on the type of notice and the taxpayer’s individual circumstances.