What Is An Administrative Appeal?
An Administrative Appeal allows you a second chance in reversing or stopping an IRS’s decision or action that is unfair or incorrect. This may lead to a more favorable outcome for your tax situation.
The term Administrative Appeal applies to any appeal filed regarding action taken by the IRS. The IRS allows you to appeal any decision or action taken by them including decisions made during an audit or decisions to collect on tax debt. As a taxpayer, if you feel that the IRS has made any unfair or incorrect decisions in regard to your tax situation, you may appeal said action without going to court 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. If you find yourself in a dispute with the IRS or are going through a tax audit, you have the right to appeal any decision made 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 (usually over the phone) with an official within the IRS Office of Appeals in order for a final decision to be made; however, arbitration is optional. Most appeals to the IRS are made through a tax professional. If for any reason you apply for an appeal and the appeal is rejected, you are able to appeal the rejection of the appeal as well.
When an Administrative Appeal is filed, the IRS will halt any collection actions taken against you until the appeal is resolved and a decision is made.
When Do I File For An Administrative Appeal?
The timing for filing an Administrative Appeal depends on the type of Administrative Appeal being filled. It is often best to file for an appeal:
- as quickly as possible,
- as soon as possible after the IRS makes a decision you disagree with
- as soon as possible when being audited by the IRS so that no actions are taken by the IRS before you can appeal.
What Are The Types Of Appeals And What Situations Can I File An Appeal For?
If the IRS has taken any action against you which you would like to appeal, it is essential to consult with a tax professional to guide you through the best options and processes. Administrative Appeals are often difficult to navigate because you may not always receive the best-case scenario outcome. A tax professional can provide you with many best- and worst-case scenarios and help you find the best option to relieve yourself from any outstanding tax debt. Give us a call today and we can walk you through the best way to handle any undesirable decisions made by the IRS based on your situation.