If you were audited by the IRS, received a tax bill, or were subject to any other IRS action you disagree with, you probably have the option to file an appeal. The process of filing an IRS appeal in Baltimore can range from relatively simple to extremely complex, depending on your overall situation. Hiring a tax attorney to represent you during the appeal process can help you understand the relevant tax laws and increase the chances that your appeal will be successful.
The first stage of the process is determining whether the taxpayer has the option to appeal an IRS decision. Typically, they will have received a letter with the IRS’s decision that also states that they have the right to appeal. To appeal, the taxpayer needs to argue successfully that the IRS did not understand and apply the law correctly to their case or that the IRS misinterpreted facts that affected the outcome of the case. They cannot appeal on ideological, moral, or religious grounds. The appeals process is designed to address legal or procedural issues, not philosophical opposition to paying taxes on certain income.
For most appeals, the taxpayer will need to send the IRS a formal written protest. This document needs to state that the taxpayer wants to appeal and include the specific taxes involved and the reasons the taxpayer disagrees with the IRS’s assessment. It should also include any references to laws or facts that support the taxpayer’s argument. If the tax owed and the penalties are less than $25,000, the taxpayer can use the small case request process, which is simpler. The process for appealing a collection decision can be slightly different. Regardless of the type of appeal, the protest usually needs to be filed within 30 days of receiving the decision letter from the IRS.
Once the IRS receives the protest and any supporting documents, the Independent Office of Appeals will review it. This is a separate office from the one that made the initial decision, which is intended to provide an objective view of the situation. After reviewing the protest, the Appeals office will schedule a conference with the Richmond taxpayer to discuss the situation and attempt to resolve the case. These conferences can happen by mail, phone, video conference, or in person. The taxpayer’s attorney can represent them at any of these meetings and answer correspondence on their behalf. The Appeals office will make a decision in either the taxpayer’s or the IRS’s favor. In some cases, they may suggest a compromise, such as a settlement where the taxpayer only pays a portion of what the IRS says they owe.
The process of filing an IRS appeal in Baltimore can be complicated and overwhelming. Since the outcome of the appeal can have a major financial impact, the stakes are high. While it is possible to handle an appeal on your own, hiring an attorney allows you to rely on their expertise instead of researching tax rules on your own. Whiteford Tax Defense has the knowledge you need. Contact us to discuss your case today.