Information For...

For you and your family
Individuals abroad and more
EINs and other information

Filing For Individuals

Information For...

For you and your family
Standard mileage and other information

Forms and Instructions

Individual Tax Return
Request for Taxpayer Identification Number (TIN) and Certification
Single and Joint Filers With No Dependents
Employee's Withholding Allowance Certificate

 

Request for Transcript of Tax Returns
Employer's Quarterly Federal Tax Return
Installment Agreement Request
Wage and Tax Statement

Popular For Tax Pros

Amend/Fix Return
Apply for Power of Attorney
Apply for an ITIN
Rules Governing Practice before IRS

Podcast text script - Appeals Process Exam Issues

HELLO AND WELCOME TO THE IRS OFFICE OF APPEALS OR SIMPLY “APPEALS.”
  
MY NAME IS CRYSTAL… AND I’M HERE TO TELL YOU A LITTLE ABOUT OUR PROCESS… SO YOU KNOW WHAT TO EXPECT IF YOU REQUEST AN APPEAL TO AN IRS DECISION.
  
WE ARE AN INDEPENDENT ORGANIZATION WITHIN THE INTERNAL REVENUE SERVICE.
     
OUR MISSION IS TO HELP TAXPAYERS AND THE IRS RESOLVE TAX DISPUTES FAIRLY.
   
IF YOU DISAGREE WITH THE IRS’S POSITION… APPEALS WILL TAKE AN INDEPENDENT LOOK AT YOUR CASE AND EVALUATE BOTH YOUR VIEW ON THE ISSUE AND THEIR POSITION.   
  
WE WANT OUR PROCESS TO BE USER FRIENDLY FOR ALL TAXPAYERS… WHETHER YOU BRING YOUR OWN CASE TO APPEALS OR USE A TAX PROFESSIONAL.
   
HERE IN APPEALS, WE WANT TO WORK WITH YOU INFORMALLY TO TRY TO SETTLE YOUR TAX DISPUTE WITHOUT THE NEED FOR A FORMAL COURT HEARING.  
   
WE SUCCESSFULLY RESOLVE MOST OF THE CASES THAT COME TO US.  
   
ONCE YOUR CASE COMES TO APPEALS, YOU WILL BE ASSIGNED AN APPEALS OFFICER… WHO WILL PROVIDE AN IMPARTIAL POINT OF VIEW ON YOUR CASE.   
   
THE APPEALS OFFICER WILL FULLY CONSIDER YOUR POSITION AND ARGUMENTS ALONG WITH THOSE OF THE IRS COMPLIANCE DIVISION THAT PROPOSED THE ADJUSTMENT TO YOUR TAX.
   
IT’S IMPORTANT TO US THAT YOU HAVE A MEANINGFUL OPPORTUNITY TO BE HEARD.
   
YOUR APPEALS OFFICER WILL STRIVE TO RESOLVE YOUR DISPUTE QUICKLY AND EFFICIENTLY.  
   
TO HELP US DO THIS… IT’S VERY IMPORTANT THAT YOU PROVIDE ALL RELEVANT FACTS, DOCUMENTS AND INFORMATION TO COMPLIANCE SUPPORTING YOUR POSITION PRIOR TO COMING TO APPEALS.  
   
APPEALS PROVIDES AN INDEPENDENT REVIEW OF YOUR CASE AFTER YOU HAVE WORKED WITH COMPLIANCE.    
   
TYPICALLY… ONCE YOUR CASE IS UNDER REVIEW BY APPEALS… YOUR APPEALS OFFICER WILL CONTACT YOU BY MAIL OR TELEPHONE.
     
YOUR APPEALS OFFICER WILL GIVE YOUR CASE REGULAR ATTENTION SO THAT IT PROGRESSES STEADILY THROUGH THE SYSTEM.
     
IF YOU HAVE CONCERNS ABOUT THE ACTIONS ON YOUR CASE… PLEASE DISCUSS THEM WITH YOUR APPEALS OFFICER SO YOU CAN WORK TOGETHER TO ADDRESS THEM.   
   
IF YOU’VE ALREADY REQUESTED AN APPEAL, YOU MAY HAVE HAD SOME DISCUSSION OR CORRESPONDENCE WITH YOUR APPEALS OFFICER TO HELP HIM OR HER PREPARE FOR YOUR CASE.   
   
YOU MAY HAVE ALSO DISCUSSED THE DOCUMENTATION OR EVIDENCE YOU PROVIDED.
   
PLEASE KNOW THAT IF YOU PROVIDE NEW INFORMATION TO APPEALS THAT WAS NOT PREVIOUSLY PROVIDED TO THE IRS, THIS MAY CAUSE DELAYS IN RESOLVING YOUR DISPUTE… AS APPEALS MAY HAVE TO RETURN YOUR CASE TO COMPLIANCE OR MAY NEED TO HAVE COMPLIANCE REVIEW THE INFORMATION.  
    
YOUR APPEALS OFFICER WILL SHARE WITH YOU ANY INFORMATION THAT COMES BACK FROM THAT REVIEW.  
   
ALSO… PLEASE KEEP IN MIND THAT WHILE APPEALS IS CONSIDERING YOUR CASE… INTEREST CONTINUES TO ADD UP ON ANY UNPAID BALANCE YOU MIGHT OWE.  
   
THIS IS ANOTHER REASON WHY IT’S BEST TO PROVIDE ANY NECESSARY DOCUMENTATION TO COMPLIANCE PRIOR TO COMING TO APPEALS OR TO OTHERWISE PROVIDE IT TO APPEALS AS SOON AS REQUESTED.
   
DURING YOUR APPEAL… YOU WILL REVIEW THE FACTS WITH YOUR APPEALS OFFICER AND HE OR SHE WILL DISCUSS WITH YOU HOW THE LAW APPLIES TO THE FACTS OF YOUR CASE.  
   
YOUR APPEALS OFFICER MAY ALSO DISCUSS DECISIONS THE COURTS HAVE MADE WHEN THEY RULED ON CASES SIMILAR TO YOURS.
  
SOMETIMES… THE ISSUES IN A CASE ARE CLEAR CUT… MEANING THE FACTS AND TAX LAW ARE QUITE APPARENT.  
   
IN OTHER CASES… THE FACTS MAY BE DIFFICULT TO TIE DOWN OR THE LAW MAY BE SUBJECT TO DIFFERENT INTERPRETATIONS.
    
WHEN FACED WITH THESE GRAY AREAS OF THE LAW… WE’LL REVIEW PUBLISHED COURT DECISIONS TO SEE HOW THE COURTS HAVE RULED IN SIMILAR SITUATIONS.  
   
WE’LL CONSIDER WHAT THE OUTCOME MIGHT BE IF YOUR CASE WERE TO GO TO COURT AND WE’LL DISCUSS THESE RULINGS WITH YOU.
   
WE’LL USE THIS INFORMATION TO FIND A MUTUALLY ACCEPTABLE SETTLEMENT.  
   
WE’LL LISTEN TO YOUR CONCERNS AND REVIEW ANY INFORMATION OR COMMENTS YOU PRESENT BEFORE MAKING A FINAL DECISION.  
   
IF YOUR CASE RESULTS IN A DECISION YOU FEEL IS UNFAVORABLE… WE’LL PROVIDE YOU WITH A FULL EXPLANATION OF THE REASONS FOR OUR DECISION AND EXPLAIN WHAT YOUR OPTIONS ARE.
   
THIS IS A GOOD TIME TO MENTION THAT THERE IS ANOTHER PERSON INVOLVED IN YOUR APPEAL…  THE APPEALS TEAM MANAGER.  
   
YOUR APPEALS OFFICER WILL MAKE A RECOMMENDATION TO THE APPEALS TEAM MANAGER ON THE SETTLEMENT OF YOUR CASE.
   
AS THE SUPERVISOR OF YOUR APPEALS OFFICER, THE APPEALS TEAM MANAGER HAS THE ULTIMATE AUTHORITY TO APPROVE THE APPEALS OFFICER’S RECOMMENDED RESOLUTION FOR YOUR CASE.
   
THE APPEALS TEAM MANAGER WILL REVIEW THE FILE AND APPROVE THE CASE IF THE SETTLEMENT IS APPROPRIATE OR RETURN IT TO THE APPEALS OFFICER IF ADDITIONAL WORK IS NEEDED.  
   
AS A RESULT OF YOUR DISCUSSION WITH YOUR APPEALS OFFICER… THERE ARE GENERALLY THREE WAYS TO RESOLVE YOUR CASE.  
   
ONE WAY IS FOR THE APPEALS OFFICER TO RECOMMEND THAT THE IRS FULLY CONCEDE OR GIVE UP AN ISSUE.  
   
THIS WOULD HAPPEN IF THE FACTS AND LAW CLEARLY SUPPORT YOUR POSITION.
    
IT COULD ALSO HAPPEN IF THE FACTS AND THE LAW ARE LESS CLEAR BUT WHERE THE COURTS HAVE RULED IN FAVOR OF YOUR POSITION.  
   
A SECOND WAY TO RESOLVE YOUR CASE IS FOR THE APPEALS OFFICER TO RECOMMEND THAT YOU FULLY CONCEDE OR GIVE UP AN ISSUE.  
   
THIS WOULD HAPPEN IF THE FACTS AND LAW CLEARLY SUPPORT THE GOVERNMENT’S POSITION AND WHERE THE COURTS HAVE CONSISTENTLY RULED AGAINST YOUR POSITION.
    
THE THIRD WAY TO RESOLVE A CASE IS TO SETTLE OR COMPROMISE AN ISSUE SO THAT BOTH YOU AND THE IRS GIVE UP SOME PART OF THE ISSUE.  
   
THIS IS A COMMON OUTCOME IN APPEALS CASES.  
   
THIS HAPPENS WHEN EITHER THE FACTS OR THE LAW ARE UNCLEAR OR THE COURTS HAVE RULED INCONSISTENTLY ON THE ISSUE.  
   
OFTEN IN THIS SITUATION… ONE PARTY MUST GIVE UP A LARGER PORTION OF THE ISSUE THAN THE OTHER PARTY DEPENDING ON THE FACTS, THE LAW AND HOW THE COURTS HAVE RULED.  
   
A SETTLEMENT IN THIS SITUATION… WHERE AN EXACT ANSWER CANNOT BE DETERMINED… MIGHT BE COMPUTED AS SOME PERCENTAGE OF THE TAX DUE.  
   
IF YOU PLAN TO COME TO APPEALS OR IF YOU ARE JUST STARTING THE APPEALS PROCESS… YOU SHOULD THINK ABOUT WHETHER SUCH A SETTLEMENT WOULD BE POSSIBLE IN YOUR CASE.  
   
ONCE YOU COMPLETE YOUR DISCUSSION WITH YOUR APPEALS OFFICER… YOU WILL LET HIM OR HER KNOW IF YOU NOW AGREE OR STILL DISAGREE.  
   
IF YOU AGREE… WE WILL PROVIDE YOU WITH AN AGREEMENT FORM TO SIGN IF ONE IS NEEDED.  
   
IF YOU DON’T AGREE… WE WILL DISCUSS WHETHER YOU HAVE FURTHER OPTIONS AND HOW TO PURSUE THEM.  
   
EITHER WAY… THE APPEALS OFFICER WILL THEN FORWARD YOUR CASE WITH HIS OR HER RECOMMENDATION TO THE APPEALS TEAM MANAGER FOR REVIEW.
   
THE APPEALS TEAM MANAGER WILL REVIEW THE CASE TO BE SURE THE SETTLEMENT REFLECTS A RESULT THAT IS IMPARTIAL AND IN THE BEST INTERESTS OF BOTH YOU AND THE GOVERNMENT.  
   
IF YOU REACH AN AGREEMENT AND YOU DON’T OWE ANYTHING OR ARE DUE A REFUND… THERE’S NOTHING LEFT FOR YOU TO DO.  
   
IF THERE IS A REFUND AND YOU DON’T HAVE ANY OTHER OUTSTANDING AMOUNTS YOU OWE… THE IRS WILL SEND IT TO YOU.  
   
IF YOU OWE SOME AMOUNT… YOU MAY BE INTERESTED IN KNOWING ABOUT OUR PAYMENT OPTIONS.  
   
YOUR APPEALS OFFICER WILL GO OVER THIS WITH YOU IN DETAIL… BUT GENERALLY YOU CAN PAY A FEW DIFFERENT WAYS.  
   
YOU CAN PAY THE FULL AMOUNT DUE RIGHT AWAY… INCLUDING INTEREST… BY REQUESTING AN INTEREST COMPUTATION AND GIVING US A CHECK FOR THAT AMOUNT.  
   
THIS WILL STOP ANY INTEREST THAT HAS BEEN ADDING UP AND WILL GENERALLY FINALIZE THE MATTER.  
   
IF YOU CAN’T PAY THE FULL AMOUNT… WE RECOMMEND THAT YOU MAKE SOME PARTIAL PAYMENT SINCE THAT WILL HELP TO REDUCE THE AMOUNT OF FURTHER INTEREST ACCRUALS.
   
IF YOU CAN’T PAY THE FULL AMOUNT ALL AT ONCE AND YOU HAVE FILED ALL REQUIRED TAX RETURNS… YOU MAY QUALIFY FOR A PAYMENT PLAN.  
  
IF THE TOTAL AMOUNT YOU OWE IS UNDER 50-THOUSAND-DOLLARS… YOUR APPEALS OFFICER CAN HELP YOU SET UP A PAYMENT PLAN TO PAY OFF THE AMOUNT IN 60 MONTHS.  
   
IF YOU OWE A LARGER AMOUNT OR NEED MORE TIME TO PAY… YOU WILL HAVE THE OPPORTUNITY TO DISCUSS A PAYMENT PLAN WITH SOMEONE IN THE COMPLIANCE DIVISION OF THE IRS.
   
IF YOU DOUBT YOU CAN PAY THE FULL AMOUNT… EVEN UNDER A PAYMENT PLAN, AND YOU HAVE FILED ALL REQUIRED TAX RETURNS… YOU CAN CONSIDER SUBMITTING AN OFFER IN COMPROMISE.  
   
THIS LETS YOU OFFER TO PAY A LOWER AMOUNT THAN YOU OWE TO FINALIZE THE MATTER.  
   
THIS OFFER IS A BIT MORE COMPLEX AND THERE ARE LIMITATIONS AS TO WHEN THE IRS CAN ACCEPT SUCH AN OFFER.  
   
YOUR APPEALS OFFICER CAN GIVE YOU MORE DETAILS ABOUT THIS AND GIVE YOU THE FORMS YOU NEED TO MAKE THIS TYPE OF OFFER.
   
IF YOU DO NOT REACH AN AGREEMENT IN APPEALS… YOUR APPEALS OFFICER WILL INFORM YOU AS TO ANY FURTHER OPTIONS YOU MAY HAVE.  
   
THIS WILL DEPEND ON SEVERAL FACTORS… SUCH AS WHETHER YOUR CASE CAME TO APPEALS AS A RESULT OF AN AUDIT OR WHETHER IT IS PART OF THE COLLECTION APPEALS OR COLLECTION DUE PROCESS PROGRAMS.  
   
IT WILL ALSO DEPEND ON WHETHER YOUR CASE IS ALREADY DOCKETED IN TAX COURT.  
   
WE WILL EXPLAIN YOUR OPTIONS AND HOW TO PURSUE THEM.  
   
WE WILL ALSO LET YOU KNOW ABOUT ANY APPLICABLE DEADLINES.
        
IF YOU STILL HAVE QUESTIONS… GO TO I-R-S-DOT-GOV-SLASH-APPEALS OR DOWNLOAD FROM I-R-S-DOT-GOV PUBLICATION 4227… WHICH IS THE OVERVIEW OF THE APPEALS PROCESS… OR YOU CAN ALWAYS ASK YOUR APPEALS OFFICER.