| A tax appeal refers to an administrative process | | | | The appeal does not work like a regular court |
| where the taxpayer protests the tax assessment | | | | procedure. Hearsay is admissible and often no rules |
| proposed on him by the IRS. An assessment is an IRS | | | | are followed. Sometimes a letter is enough to present |
| bookkeeping entry indicating the amount payable | | | | the case, other times professional help is required. One |
| based on their audit of your income, expenses, equity | | | | must have the facts and law with him to win his |
| on assets and other factors. If you believe the | | | | appeal. |
| assessment is too much, you may initiate an appeal | | | | The pros and cons of the appeal include no collection |
| for tax relief. | | | | while the appeal is pending decision, but the IRS officer |
| Should the IRS decide against the appeal and finally | | | | can open new issues omitted in the audit. The |
| makes the assessment, you may elevate the appeal | | | | procedure costs nothing and can run for months. |
| to the state courts and finally the United States Court | | | | Meanwhile, however, interest on your liability also |
| of Appeals. | | | | mounts, so you may end up with a bigger liability if you |
| An IRS appeal is generally an informal procedure done | | | | lose the appeal. |
| by a separate IRS division. It is not required by law so | | | | During or before the appeals process, a copy of the |
| you have no legal right to an IRS appeal. It is only a | | | | auditor's report may be obtainable via the Freedom of |
| process by which the IRS may rectify its own errors in | | | | Information Act. The report may help you determine |
| judgment and as such, the IRS appeals officer needs | | | | whether to continue with the appeal or win your case |
| also to consider the IRS position against your own. | | | | for tax relief. |