A tax liability decision of the Internal Revenue Service (“IRS”) is appeal’s hearing in the context of the collection process.  Generally, appeals are heard by an Appeals Officer who presides over the informal appeals hearing (“Appeals Hearing”).   

Appeals Hearings are available in the following situations: 

• Collection Appeals Program (CAP) Hearing – protest collection procedure and not underlying tax liability,
• Collection Due Process (CDP) Appeals – protest law or administrative procedure,
• Denial of an Offer in Compromise,
• Post examination of a tax return,
• Penalty Abatement Hearings – IRS discretion,
• Disallowance of tax refund,
• Pre-Termination of Installment Agreement, and
• Post filing of Tax Court petition (absent previous Appeals Branch hearing) for settlement prior to trial. 

 The Appeals Officer issues a decision (Notice of Determination), which addresses the taxpayer’s arguments and reasons for the decision.  He Notice of Determination is appeal to the Tax Court or District Court.   

A taxpayer seeking an Appeals Hearing must submit a timely request to the District Director or Service Center Director according to the IRS Notice.  The Director will refer the request to the Appeals Office to schedule an Appeals Hearing. 

The IRS conducts three different types of audits: correspondence (mail notification of audit conducted by mailing information or documents), office (letter notification of audit conducted at IRS office), and field (letter notification of audit conducted at residence or business). 

IRS Publication 1, “Your Rights as a Taxpayer,” lists a number of audit rights: 

• Be treated fairly by IRS personnel,
• Have a representative handle your audit,
• Sound record the audit,
• Not have to submit to repeat audits,
• Have proposed adjustments explained,
• Not be forced to incriminate yourself, and
• Appeal your audit. 

It is recommended that a tax professional represent the taxpayer at either an Appeals Hearing or Audit in order to protect and reserve legal rights.

For more information or questions about your specific tax matter, please contact the office or click CONTACT US.

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