The IRS agent’s report is not binding. You may appeal a business IRS audit decision at a number of levels. This may be done before the agent’s manager, before an appeals’ officer, or before the U.S. Tax Court. The ability to access these venues is limited due to the timetables involved. Make sure you stay one step ahead of the IRS deadlines to respond, so your rights are not lost.
The first and most important thing to do if you are appealing IRS audit findings is to hire a tax law attorney immediately. A tax law attorney will be familiar with the appeals process and make certain that the proper documents and filings are presented at the right time.
The first step in the appeal process is to request an appeal with the agent’s manager. This type of appeal is especially useful if the tax agent was being unprofessional or was not properly evaluating your evidence. A meeting with the manager will entail a review similar to the audit you just had, however the manager will personally review the information and reach a conclusion.
If you are still unhappy with the conclusion of the manager, then your first step is an appeals officer. An IRS appeals officer is trained in reviewing only the pertinent information and arguments for your appeal. If you choose to bring your case to an appeals officer, make certain that all documents are present in the packet you send and that your arguments are clearly outlined in the appeal document. To increase your chances of a successful appeal, a tax law attorney would be a wise investment.
The final step is the U.S. tax court. Similar to other federal courts, this court hears tax-related appeals and offers a judgment. The technicalities and expectations of the tax court are very complex and should always be handled by a tax law attorney. Otherwise, missing a simple response deadline could result in your case being dismissed, in which case, the IRS will force you to pay the taxes.