Tuesday, May 25, 2010

Appeal an IRS Tax Assessment

The IRS gets it wrong half of the time. In fact, over 80% of tax assessments resulting from an audit and sent to appeals are reduced or illuminated in appeals.

You need to understand the IRS audit process before you can understand why most tax assessments need to get appealed. The IRS auditor will only add up receipts and compare reported information on the tax return with records the IRS already has. There are frequent errors.

The IRS auditor will assess additional tax when something does not match or if receipts for deductions are missing. The auditor has no authority to use common sense in these issues. They add numbers and decide if tax laws were followed.

The IRS appeals office has the authority to settle the dispute. It is in the IRS' best interests to settle the issues rather than risk the issue ending up in Tax Court, which is already overbooked. The IRS appeals office will frequently reduce even questionable issues from an audit all in the hope of gets the file closed. Use this information to your advantage.

IRS appeals is a large issue. You can read the following two articles to get an in-depth look at the IRS appeals process: IRS Audit Manual: The IRS Appeal and The IRS Audit Manual Appeals Process, Part 2


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