The IRS makes mistakes all the time. Sometimes it is impossible to find a bureaucrat at the IRS to fix the problem. When this happens, you go to court; Tax Court.
Beating the IRS in Tax Court is not a daunting task. You can file a small claims case if you owe less than $50,000. Small claims in Tax Court is similar to small claims in civil court. You can present your case to the judge in an informal environment; no fancy legal talk and maneuvers.
Another benefit of Tax Court is that once you file, the IRS attorneys work hard to get you to settle out of court. They can cut you some very nice deals, even more than you deserve, to keep the Tax Court docket open.
Learn more about winning in Tax Court here: The IRS Audit Manual: Beating the IRS in Tax Court
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Showing posts with label IRS appeals. Show all posts
Showing posts with label IRS appeals. Show all posts
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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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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