IRS Audit Appeal Response

What the Appeals Process Provides

The IRS Appeals process provides independent review of disputed audit findings by an appeals officer who was not involved in the original examination. Appeals offers an opportunity to resolve disputes without going to Tax Court.

Appeals review is informal and settlement-oriented. The appeals officer considers both factual evidence and legal arguments, and has authority to negotiate settlements based on litigation hazards.

When to Request Appeals Review

Request appeals review when:

• You disagree with audit findings and cannot resolve with the examiner
• The examiner misapplied tax law or ignored relevant facts
• You have additional evidence not considered during the audit
• Proposed adjustments are based on incorrect legal interpretation
• You want independent review before accepting or litigating the case

Appeals must be requested within 30 days of receiving the examination report or notice of proposed deficiency.

What NOT to Do in Appeals

• Do not miss the 30-day deadline to request appeals review
• Do not submit incomplete or poorly organized appeal requests
• Do not raise new issues not addressed during the audit
• Do not submit appeals protest without supporting documentation
• Do not make frivolous or groundless arguments
• Do not refuse to participate in settlement discussions

How to Request Appeals Review

To request appeals review:

• Step 1: Receive the examination report showing proposed adjustments
• Step 2: Decide whether to request small case procedures (disputes under $25,000) or formal written protest
• Step 3: Prepare written protest stating disagreement with each adjustment and factual/legal basis
• Step 4: Include statement under penalties of perjury that facts are true
• Step 5: Attach supporting documents and legal authorities
• Step 6: Submit protest within 30 days to the address in the examination report
• Step 7: Participate in appeals conference when scheduled

Appeals review typically takes several months. Most cases settle without proceeding to Tax Court litigation.

Related Resources