What Is An Administrative Appeal?
An Administrative Appeal gives you a chance to reverse or stop an unfair or incorrect IRS decision or action. Consequently, you may receive a more favorable outcome for your tax situation.
The term “Administrative Appeal” applies to any appeal filed regarding action taken by the IRS. Any IRS decision or action can be appealed. For instance, this includes IRS decisions made during an audit or decisions to collect on a tax debt. Moreover, you can appeal any IRS decision felt as unfair or incorrect without going to court. You file your appeal through their Office of Appeals, a separate entity from the IRS themselves.
What Is The Administrative Appeal Process?
All Administrative Appeals are filed through the IRS Office of Appeals. This Office is separate from the tax office of the IRS. Any taxpayer disputing an IRS decision or tax audit has the right to appeal before going to court. The appeal method is often more cost effective than going to court.
In some cases, after an appeal is filed, the IRS will request either written arbitration or a hearing. This hearing with an official within the IRS Office of Appeals is usually by phone. Subsequently, final decisions are made at this hearing or through optional arbitration. However, most appeals to the IRS are made through a tax professional. Moreover, you can appeal a rejection of an appeal. An Administrative Appeal halts any IRS collection actions against you until the appeal is resolved and a decision is made.
When Do I File An Administrative Appeal?
The timing for filing an Administrative Appeal depends upon the type being filled. You should file an appeal as:
- quickly as possible,
- soon as possible after the IRS makes a decision you disagree with
- soon as possible when being audited by the IRS so that no actions are taken before you can appeal
Types Of Appeals And Situations
Here are some examples of situations for filing an Administrative Appeal:
- Decisions made during a tax audit
- Rejection, termination, modification or any change to an Installment Agreement
- Rejection or undesirable response when applying for an Offer in Compromise
- Any collection decision or action made by the IRS
- Notice or placement of any levies, liens or seizures of property
- Rejection of an appeal
The most common types of appeals are Collection Due Process (CDP) and Collection Appeal Program (CAP). However, you can file other types of appeals based upon your situation.
You must consult with a tax professional if the IRS has taken an appealable action against you. A professional can guide you through the best options and processes. Furthermore, Administrative Appeals are complicated. Moreover, sometimes appeals do not produce the best outcome. A tax professional can provide you with various options. Give us a call today. We can help you handle any undesirable decisions made by the IRS based upon your situation.