IRS Tax Appeals Help: Where It Applies

IRS decisions can be devastating, especially when you know they are unjustified – luckily, most IRS actions are not final, and they can be challenged. Taxpayers have a formal and legal right to challenge IRS decisions, but only if they act by the deadline for their situation.

Appeals can help remove a penalty, an added tax, or help you get a tax resolution that was previously denied finally approved. At 20/20 Tax Resolution, we treat an appeal as a tool that helps you protect your income, your assets, and your options. Learn more – contact us to set up a consultation.

You’re in the Right Place If…

Our appeals services help business and individual taxpayers dealing with these types of IRS actions and decisions:

• You want to stop or challenge a wage garnishment or bank levy.
• You disagree with an IRS decision or assessment.
• You’re facing collection actions and need time or leverage.
• You want to protect your rights and explore better resolution options.
• Your tax relief option, such as OIC, was rejected.
• You received an audit result that you don’t agree with.

Not sure if appeals is the right option? Then, reach out to our team for a conversation about your tax problem, and we’ll help you move in the right direction.

What Is an IRS Tax Appeal?

An IRS tax appeal is a formal process that allows you to challenge an IRS decision. Appeals are handled by the IRS Independent Office of Appeals, a division that operates separately from IRS Collections. The office exists solely to give taxpayers an independent review of their case.

The purpose of an appeal is to dispute tax or penalty assessments, stop enforcement actions, or protest the denial of a resolution option such as setting up a payment plan or settlement.

The outcome depends on the facts of your case, the type of appeal you’ve filed, and how the request is both prepared and argued. Having the right guidance can make all the difference in your case.

Types of IRS Appeals We Help With

At 20/20 Tax Resolution, our team of tax professionals is highly experienced in all types of IRS appeals help. We can guide you through the following processes:

Collection Due Process (CDP) Hearings

CDP hearing rights are triggered by a Notice of Intent to Levy or a Notice of Federal Tax Lien. The hearing gives you the opportunity to have a full, independent review of your case before the IRS moves forward with any enforcement activity.

The hearing has the following benefits:

• It has the power to stop pending enforcement activities.
• It provides a complete review of your collection case.
• It allows you to dispute the balance owed if you haven’t had the opportunity yet.
• It can be escalated to the Tax Court if the result is unfavorable.

We understand CDP hearings in-depth and can help you navigate the process from start to finish. Should you not get the outcome you hoped for, we can also represent you in Tax Court.

Collection Appeals Program (CAP)

The Collection Appeals Program (CAP) typically moves faster than a CDP hearing, but it can be more limited. This approach is commonly used to challenge levies, liens, seizures, and decisions on payment plans. However, a CAP decision is binding and cannot be taken to the Tax Court.

Audit & Examination Appeals

If you disagree with the findings of an IRS audit or proposed tax adjustment, an audit appeal allows you to formally dispute the result. A successful appeal requires organized documentation and a clear, structured argument as to why the adjustment should be changed. Working with a qualified tax professional gives you the best chance of success, especially if you are unfamiliar with the appeals process.

When Can You Appeal the IRS?

Understanding when you can launch an IRS appeal is often the first step. Appeals can be used in situations such as:

• Challenging a bank levy o wage garnishment
• Responding to Notice of Intent to Levy
• Challenging a filed tax lien
• Disputing audit results
• Appealing denied payment plans or settlements

If your case includes an active levy, we can help you request a levy release from the IRS. We may also be able to appeal if the IRS has already rejected your levy release request, or if you’re dealing with collection threats from a revenue officer assigned to your case.

Why Timing Matters in Tax Appeals

Appeals come with strict deadlines, and how long you have depends on the type of appeal you’re seeking.

For example, if the IRS just placed a federal tax lien on your property, you’ll have 30 days to appeal. You also have 30 days to appeal a rejected OIC. However, if the IRS sends you Letter 1153, proposing a trust fund recovery penalty, you have 60 days to challenge the decision if your letter was delivered within the United States.

Be sure to check your appeal deadlines to protect your rights, and whenever in doubt, seek the help of a tax professional.

The Risks of Not Appealing IRS Actions

Besides missing your right to appeal, there are other risks of not appealing the IRS decision when you should. They include:

• IRS can start enforcing aggressive collection actions, such as bank levy and wage garnishment
• Penalties and interest accruing on your tax balance
• You may miss out on an opportunity to settle for less than you owe

Unfortunately, if you don’t appeal, the error the IRS made may not matter anymore, while it could have changed something, including reducing a tax liability in most instances.

How We Use Appeals as Part of a Larger Strategy

We don’t offer a one-size-fits-all approach when dealing with the IRS. Our team of tax professionals understands that each case is different and needs a tailor-made strategy. When you contact us, we analyze your tax compliance history, tax debt, and financial situation before taking any steps forward.

We then determine if an appeal is a great strategy in your case, which one in particular has promising results, and how we can incorporate it with other tax resolution options.

For example, a taxpayer contacts us because the IRS denied a business expense deduction, and they want to appeal the decision. During our review of their IRS transcripts, we noticed they’ve been charged thousands of dollars in failure-to-file and failure-to-pay penalties over the past three years. While preparing the appeal, we determined they may also qualify for reducción de sanciones based on their filing history.

Instead of focusing only on the appeal, we pursued both strategies. Even if the appeal doesn’t eliminate all of the additional tax, reducing the penalties can significantly lower the overall amount owed.

Our IRS Appeals Process: What to Expect

Here’s what to expect when you work with 20/20 Tax Resolution:

When You Should Get Help With an IRS Appeal

While you can handle simple tax problems, IRS appeals tend to be more complex, and the risk of handling one alone can be expensive if you don’t prepare sufficiently and your request is rejected. Here are situations you should consider working with a tax professional:

• You received a Notice of Intent to Levy or Notice of Federal Tax Lien for a tax liability you don’t believe you owe.
• You disagree with an IRS decision or assessment and want to challenge it, but have no idea how to go about it.
• You want to stop or delay collection actions while deciding on the right strategy
• You’re unsure which appeal option applies to your tax situation
• You need support in protecting your rights and understanding your options

Why Choose 20/20 Tax Resolution for Appeals

Our team consists of excellent tax professionals who have years of experience navigating every aspect of the IRS appeals process for individual taxpayers and business owners.

Our strategic use of appeals is designed to give you the best possible outcome for your tax situation.

We understand that timing, positioning, and the strength of your documentation all have an impact on the final result, so we treat each as part of the plan right from the start.

If you’re facing an IRS decision and want to challenge it, the first step is contacting our team either via email or by calling 1.877.369.5420.

Frequently Asked Questions (FAQs)

What is a Collection Due Process (CDP) hearing?

A Collection Due Process (CDP) hearing is a formal review, and your right to request it is typically triggered by a Notice of Intent to Levy or a Notice of Federal Tax Lien. It gives you an independent review of your case and the option to escalate to Tax Court if the outcome isn’t in your favor.

How long do I have to file an appeal?

Appeal deadlines will vary by the type of notice or action. However, many appeal rights expire within 30 days. Reviewing your notice as soon as you receive it is the safest way to determine your deadline.

Can an appeal stop a levy or garnishment?

Yes. Filing a timely CDP hearing request can pause enforcement action while your case is under review. However, if you miss the CDP deadline and have to request and Equivelant Hearing, that typically will not stop enforcement actions.

Can I appeal an IRS audit result?

Yes, you can. If you disagree with the results of an IRS audit, you can file an audit appeal with supporting documentation and a formal argument on why the assessment should change. Audit reconsideration can also be an option.

What if I miss the appeal deadline?

Missing the appeal deadline generally limits your resolution options. However, some approaches may still be available to you, depending on your case. For example, if the IRS has already started wage garnishment, you can stop it by getting into an installment agreement.