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Video: What Are Tax Appeals?

Updated for Tax Year 2016


OVERVIEW

Tax appeals are often necessary in the unlikely case you are audited, and it's a surprisingly informal and quick process. Understand how to appeal a tax audit with information from TurboTax in this video on annual tax filing.


Video transcript:

Hello, I'm Jeremy from TurboTax with some important information about appealing an IRS audit.

Has the IRS chosen your tax return for an audit? Or are you currently disputing an IRS adjustment that increases the amount of tax you owe? If so, you can still try to reduce your taxes by appealing that decision. When the IRS audits your tax return and disagrees with the deduction or credit you take, or even claims that you left out some income, it's decision is not final.

Within the IRS there's an independent appeals division that will listen to your side of the story and decide whether the outcome of your audit was correct. Appealing an IRS decision is not as difficult as it may sound. The process is very informal and relatively quick.

To start the process, just follow the instructions in the final letter you receive from the IRS at the conclusion of the audit. Shortly after you will receive a date to appear at a conference. When you attend the conference an impartial officer will listen to both arguments. If you prefer not to represent yourself, you can hire a tax professional to attend the conference with you. Although this professional can be an attorney, you can also bring a CPA or other enrolled agents since this is not a legal court case.

If you disagree with the appeals decision you can still have your case heard in court. At that point you will need to get a lawyer involved. Preferably one with experience in tax cases. If you prepare your taxes with TurboTax, you'll have the opportunity to purchase audit defense coverage which gives you full representation by a tax expert in the unlikely event that you are audited. For more information about this and other tax topics, visit TurboTax.com.

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The above article is intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.


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