Tax Appeals
Written in plain language for general understanding. This is educational content, not legal advice. Based on federal statutes and official sources.
What is this right?
You have the right to appeal virtually any IRS decision you disagree with. The IRS Office of Appeals is an independent division within the IRS that reviews disputed cases. Appeals officers consider your case fresh — they are not bound by the examiner's findings.
Most tax disputes are resolved at the appeals level without going to court. If you can't resolve it through appeals, you can take your case to the U.S. Tax Court, where you can challenge the IRS's assessment without paying the tax first.
When does it apply?
This right applies when:
- You disagree with the results of an IRS audit
- The IRS denies your Offer in Compromise or installment agreement
- The IRS assesses penalties you believe are unfair
- You receive a Notice of Deficiency ("90-day letter") proposing additional tax
- You disagree with a collection action (lien or levy)
Common misconceptions:
- "I have to pay the tax before I can fight it" — No. You can petition the U.S. Tax Court BEFORE paying the disputed amount. This is a critical right.
- "Appeals always side with the IRS" — Not true. Appeals officers resolve cases based on the hazards of litigation — the likelihood of the IRS winning in court. If the IRS's position is weak, appeals will often settle.
- "I need a lawyer for Tax Court" — Not necessarily. For cases under $50,000, you can use the Tax Court's simplified "small case" (S case) procedure, which is designed for self-represented taxpayers.
What should you do?
Step 1: If you receive an audit report you disagree with, file a written protest within 30 days. For assessments under $25,000, use Form 12203 (Request for Appeals Review). For larger amounts, write a formal protest letter.
Step 2: If you receive a Notice of Deficiency (90-day letter), you have exactly 90 days to file a petition with the U.S. Tax Court. This deadline is absolute and cannot be extended.
Step 3: Prepare your case. Gather all supporting documents, organize your arguments, and consider hiring a tax professional.
Step 4: At the appeals conference, be prepared to negotiate. Appeals officers have authority to settle cases — bring your best arguments and documentation.
Step 5: If appeals doesn't resolve it, file with the U.S. Tax Court. For amounts under $50,000 per year, elect the S case procedure for a faster, simpler process.
What should you NOT do?
Don't miss the 90-day Tax Court deadline. If you receive a Notice of Deficiency, this is the most important deadline in tax law. Missing it means you must pay the tax first, then sue for a refund in federal court.
Don't go to appeals unprepared. The appeals officer will take you seriously, but only if you bring documentation and coherent arguments.
Don't accept the first offer. Appeals officers expect negotiation. If their initial position is unfavorable, present your counterarguments.
Don't give up. Even if you represented yourself poorly during the audit, you can present your case fresh at appeals. New evidence is generally accepted.
How District of Columbia differs from federal law
D.C. tax appeals go through administrative hearings:
- Informal review: You can request an informal review of an assessment by contacting D.C. OTR. Many disputes are resolved at this level.
- Office of Administrative Hearings (OAH): If informal review fails, you can petition the D.C. OAH for a formal hearing before an Administrative Law Judge.
- D.C. Superior Court: OAH decisions can be appealed to D.C. Superior Court.
- Real property tax appeals: Property assessment appeals are handled by the D.C. Board of Real Property Assessments and Appeals (BRPAA) before going to D.C. Superior Court.
Additional Steps in District of Columbia
Contact D.C. OTR at (202) 727-4829 for informal review. File a petition with OAH at oah.dc.gov within 30 days of the final determination. For property tax appeals, file with BRPAA by April 1.
Relevant Law: D.C. Code § 47-4312 (administrative appeal), D.C. Code § 2-1831.01 et seq. (Office of Administrative Hearings)
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