Because people sometimes disagree on tax matters, the Internal Revenue Service has a tax appeal system. Most differences can be settled within this system without going to court.
The Internal Revenue Service (IRS) Office of Appeals (Appeals) was formed in 1927. Despite numerous changes since its formation, Appeals’ mission has remained the same:
To resolve tax controversies, without litigation, on a basis which is fair and impartial to both the Government and the taxpayer in a manner that will enhance voluntary compliance and public confidence in the integrity and efficiency of the Service.
Tax controversies can involve proposed tax assessments, tax collection, or other IRS actions. Once the IRS issues a final notice, taxpayers can generally seek a remedy from the courts. However, the Appeals process is less formal and less costly than court proceedings and is not subject to judicial rules of evidence or procedure. Historically, Appeals has been able to settle the majority of the cases that come within its jurisdiction. In addition, taxpayers do not give up judicial review by coming to Appeals.
Independence is the most important of Appeals’ core values. Independence from IRS compliance functions is critical for Appeals to accomplish its mission. To resolve disputes effectively, Appeals must show itself to be objective, impartial, and neutral in fact as well as appearance. If taxpayers perceive they will not get a fair hearing in Appeals, more tax controversies would be litigated in Tax Court, which would increase the cost and burden to both the taxpayer and the Federal Government.
If you have received documentation from the IRS informing you of your rights detailing the IRS Tax Appeal process, you should act quickly, and obtain professional tax representation. Contact us for support at (866) 566-8582.