Private Foundation Excise Tax Appeal Procedures: Protest and Conference Procedures


If, after receiving the 30-day letter, the taxpayer wishes to appeal, the taxpayer must send a written protest to the examiner within 30 days from the date of the letter. The protest must include a full and detailed statement of the facts, law, and argument in support of the taxpayer's position and, if desired, a request for a conference with the Independent Office of Appeals (Appeals).  Deficient protests will be returned to the taxpayer with an explanation why the protest cannot be accepted.  Additional time will be given to the taxpayer to perfect the protest.

Upon receiving a taxpayer's protest and request for a conference, the examiner will review the protest; if the adverse position is maintained, the request and the case file are forwarded to the local Appeals office which will contact the taxpayer regarding conference rights. In appropriate cases, the examining officer may attend the Appeals office conference to clarify the facts in the case. If additional issues are raised at the conference, the case will be returned to the examiner, through the Area Manager's office, to consider these issues.

If, after Appeals considers the case, a satisfactory settlement of the issues is reached with the taxpayer, the taxpayer will be given a revised report of examination prepared at the Appeals office, if necessary, and will be asked to sign an appropriate agreement form.

If agreement is not reached at this stage, the Appeals office will issue a statutory notice of deficiency and/or a final adverse determination letter after consideration by the IRS Area Counsel.  The taxpayer may then petition, within the statutory period, the United States Tax Court for redetermination of the deficiency.

If the case under consideration in Appeals is docketed in the Tax Court and agreement is reached with the taxpayer on the issues involved, the case is disposed of by filing a stipulation of agreed deficiency or overpayment with the Tax Court, which will enter its order in conformity with the stipulation.

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