The Internal Revenue Service (IRS) has just completed its audit of one of your previous tax returns, and the verdict wasn’t good. What now? You don’t agree with the outcome, so what are your options? Fortunately, if you disagree with the way an IRS auditor adjusts your return, it is within your rights to appeal the auditor’s decision, based on audit defense reviews.
The IRS has set up an appeals office featuring 2,000 workers across the United States. Most of these workers are previous IRS auditors who have seniority with the IRS. They also typically have some accounting or legal experience. These individuals’ main goal is to look at your IRS tax auditor’s examination reports, then allow you to plead your case to a high-level individual in the IRS. Their goal is to resolve your tax dispute internally so as to steer clear of litigation.
One of the biggest benefits of appealing an unfavorable IRS audit decision is that an appeals officer has much more flexibility and authority in deciding your case than an auditor does. In addition, the appeals officer will openly listen to your side of the story—after all, that is his or her job. The appeals process is also free, easy, and relatively speedy, so it only makes sense to give it a try. In the end, you may reduce or eliminate any taxes plus penalties that were previously assessed. That’s because you have a high likelihood of winning your appeals case.
Appealing the IRS auditor’s decision may unfortunately extend your audit between six months and one year. However, it may be well worth it if you feel that you weren’t given a fair shake during your audit. A tax expert can guide you through the process of appealing the IRS auditor’s decision in an effort to protect your financial best interests both short term and long term.