The IRS audit appeals process lets you challenge an examiner's proposed changes without going to court. After the audit, the IRS usually sends a 30-day letter; within that window you can ask the Independent Office of Appeals, which is separate from the audit function, to review the dispute and consider a settlement based on the strengths and risks of each side's case.
If your 30 days are already running, call (415) 754-0115 to schedule a free consultation, or reach the firm through the contact page.
Where the IRS audit appeals process fits on the timeline
Think of the process as a series of doors, each with its own deadline:
- Examination. The examiner reviews your records and proposes adjustments in a report.
- Manager conference. Before the case closes, you can ask to speak with the examiner's group manager. This informal step sometimes fixes misunderstandings quickly.
- 30-day letter. The IRS sends the report with a letter giving you 30 days to agree or to request an appeal. Office and correspondence audits often use Letter 525; field examinations often use Letter 950.
- Appeals. An Appeals Officer reviews the case and meets with you or your representative, usually by phone, video or in person.
- Notice of deficiency. If you do not respond, or Appeals and you do not reach agreement, the IRS issues a 90-day letter. That notice is your gateway to the United States Tax Court.
Missing the 30-day window does not end your rights, but it skips the administrative appeal and moves you straight toward the 90-day letter. You can often ask for a short extension of the 30-day deadline if you call before it expires.
Small case request or formal written protest
The 30-day letter explains which form of appeal applies to you, based on the total amount in dispute for each tax period.
Small case request
For smaller disputes below the IRS threshold stated in the letter, you can file a small case request, often on IRS Form 12203. It is a brief statement listing the items you disagree with and why.
Formal written protest
Larger disputes, and certain types of cases described in the letter, generally require a formal protest. A complete protest usually includes:
- Your name, address and a daytime phone number.
- A statement that you want to appeal the findings to the Independent Office of Appeals.
- A copy of the letter showing the proposed changes, or its date and symbols.
- The tax periods involved.
- A list of each adjustment you disagree with.
- The facts supporting your position on each item.
- The law or authority you rely on.
- A signed declaration under penalties of perjury, or a representative's declaration if an attorney prepares it.
Writing a protest that persuades
A protest is not a complaint letter. The strongest ones are organized issue by issue, tie each fact to a document, cite the relevant tax law, and concede weaker items where appropriate. Appeals Officers take the protest seriously as the roadmap for the conference, so a vague protest tends to produce a vague result.
What the Independent Office of Appeals weighs
Appeals is a separate office within the IRS whose mission is to resolve disputes without litigation. Unlike an examiner, an Appeals Officer can consider the hazards of litigation: how a court would likely view the facts and law if the case went to trial. That allows settlements an examiner could not offer, such as splitting an issue where the law is unclear.
New evidence at Appeals
Appeals does not act as a second examination. If you raise new facts or documents the examiner never saw, Appeals will often send them back to the examiner for comment before considering them. That is one reason to present your full case during the audit whenever possible.
Timing and the statute of limitations
Appeals generally wants enough time left on the assessment period to work the case. If the deadline is close, the IRS may ask you to sign a consent extending it. That decision affects your leverage and is worth discussing with counsel before you sign.
How appeals connect to Tax Court and other courts
If Appeals does not resolve the case, the IRS issues a statutory notice of deficiency. You then have 90 days from the mailing date (150 days if the notice is addressed to you outside the United States) to file a petition with the Tax Court, which lets you contest the tax without paying first. Many Tax Court cases that have not already been through Appeals are sent there for settlement discussions after the petition is filed. Our guide to IRS audit help in California covers the earlier examination stage.
Another route is to pay the tax, file a refund claim and, if it is denied, sue in federal district court or the Court of Federal Claims. Which route fits depends on the issues, the amount involved and whether you can pay first.
Getting help with an audit appeal
The Somal Law Firm, the Pleasanton practice of attorney Bob Somal, Esq., represents individuals and small businesses across the Tri-Valley and in Alameda and Contra Costa Counties in IRS audits, appeals and tax disputes. An attorney can prepare your protest, handle the Appeals conference, and advise on whether to settle or keep your Tax Court rights open. If the final result leaves a balance you cannot pay at once, there are IRS tax debt relief options to consider next.
Frequently asked questions
Do I have to go through Appeals before Tax Court?
No. You can skip the administrative appeal and wait for the notice of deficiency. Many people use Appeals first because it can resolve the dispute earlier and less formally.
Does filing an appeal stop interest from growing?
No. Interest continues to accrue on any tax ultimately owed. Some taxpayers make a deposit with the IRS to limit interest while the dispute continues; that is a question to raise with counsel.
Can I appeal penalties as well as tax?
Yes. Penalties proposed in an audit can be protested alongside the tax adjustments, including arguments that you had reasonable cause.
When you call, the firm will review your 30-day letter, confirm the deadline, and set up a free consultation to decide on next steps. Call (415) 754-0115, or use the contact form as a second way to reach us.
Attorney Advertising. This article is general legal information for Bay Area residents, not legal advice, and does not create an attorney–client relationship. Every situation is different — please consult a licensed attorney about your specific circumstances.