Many people come to us shocked at how their audits have turned out. They want to know if there’s anything we can do to help them reduce the $100,000 tax bill they have just received. (We’re never shocked at these audit results; we understand that IRS income tax audits of individuals result in an average tax debt of more than $16,000, according to 2019 data.)
Well, there is something your tax appeal attorney can do. There is a lot we can do, in fact, including taking your case to the U.S. Tax Court. You must remember, first of all, that the tax auditor’s decision is never final. There is always the possibility of taking a tax audit appeal—but you must act fast to take advantage of this option.
In order to allow people who feel wronged to obtain a review of the auditor’s work, the IRS has established a division known as the Independent Office of Appeals. A good figure for you to keep in mind about audits is that in 85% of all cases appealed, there is a satisfactory settlement. Plus, you would be amazed by the mistakes we see auditors make in just about every case that presents itself to us.
Still, even though appeals are so effective, many people tell us they are afraid to appeal because they think it might cause more harm than good. They are afraid that the Appeals Officer will reopen the audit and look into other areas that were not already examined during the audit. However, appeals take place after the audit has closed; the Appeals Office is independent of the IRS branch that assesses and collects taxes, and is not able to open investigations. Compared to audit examiners, Appeals Officers have greater authority to compromise with taxpayers in order to find a fair resolution.
Of course, we would prefer to be in on the case from the very beginning so that an appeal might be unnecessary. Still, if you get nailed on a tax audit with an outrageous bill, you should call us at once and inquire about appeal. Don’t delay! The clock is ticking. Once you receive your audit results, you have 30 days to request an IRS appeal.
During the appeal, you are entitled to be represented by a tax appeal lawyer. It’s extremely important that your attorney knows tax law; otherwise the IRS will try to slip off the hook on a technicality. Appeals officers are quick to back up the IRS auditor and very slow to find in favor of the taxpayer, so you absolutely must have help during this process.
Even if you have already had an appeal rejected by the IRS, Gordon Law Group can help by representing you in U.S. Tax Court. Taking this route means you can have a chance to prove why you don’t owe the IRS the amount it claims you owe.
The U.S. Tax Court, established under Article I of the Constitution of the United States, was created by Congress to allow taxpayers to dispute IRS tax findings. The process starts with filing a petition, which must be filed within a specific time period, and paying a filing fee. When these steps have been taken, the underlying tax obligation is typically put on hold, pending the outcome of the case.
Unlike many other types of court proceedings, U.S. Tax Court trials are decided by a judge without a jury. While taxpayers may represent themselves, choosing an experienced tax court attorney to represent you may help you avoid having your case dismissed on a technicality. Tax court matters can be complex and nuanced. In addition, the taxpayer generally bears the burden of showing why the IRS tax assessment or audit finding was incorrect. A Gordon Law Group tax court lawyer will be able to help you navigate the process and will advocate for you every step of the way.