Getting hit with an I.R.S. audit is stressful, and it’s even more so when the I.R.S. makes an audit recommendation with which you don’t agree. But taxpayers in distress need not panic; these recommendations are not irreversible, and you have a legal right to an I.R.S. appeal in Illinois. I.R.S. appeals, however, are very involved and are difficult to orchestrate yourself. It is highly recommended that to put a successful I.R.S. appeal into effect, you enlist the help of a qualified tax professional or appeals officer. Their expertise can make all the difference between a favorable appeal and a serious financial setback for you.
A significant majority of Illinois audits are settled as the result of an appeal, and it is vital to have the help of someone who is familiar with the process. Appeals officers specialize in I.R.S. appeals and often are more experienced and informed than the I.R.S. agents who handled your audit. They will be able to navigate around potential pitfalls, find important information and negotiate on your behalf.
Tax professionals can be as aggressive as the I.R.S., only they are working for you. They understand that, like you, the I.R.S. wants to avoid extensive legal proceedings because of the time and expense, as well as the risk of an outcome that doesn’t reflect well on them. No one can afford bad P.R., particularly the U.S. Government; every time the I.R.S. loses a case, it is an impediment that affects them for years afterward. With the power of a knowledgeable tax professional behind you, the chances of the I.R.S. losing the case increase exponentially. They will be much more open to settling the appeal outside of the courtroom to ensure that kind of loss is avoided.
The I.R.S. has an Appeals Division specifically geared toward settling disputes between taxpayers and the I.R.S. The most common appeals have to do with I.R.S. audit decisions that increase the taxpayer’s debt, usually with the addition of penalties and interest. While the I.R.S. does use highly developed technology to assist them with the auditing process, their final decisions are not always fair. Each case is unique and may involve more than what they see on paper. This is the benefit of an appeal; you are able to present a more thorough picture of your case and possibly offer grounds for a reversal of the I.R.S.’s original recommendation.
Since there are very specific guidelines for the taxpayer to file an appeal, consulting a tax expert will help the process go more smoothly. Successful appeals have led to Penalty Abatement, Interest Abatement, and even reversals of audit decisions, saving taxpayers significant amounts of money that, if lost, could have sent them into financial ruin.
An I.R.S. audit decision that is not in your favor is not set in stone. You have the legal right to appeal, and there are professionals who are willing and able to assist you throughout the process. With their help, you can protect yourself from grievous financial losses and move forward with the rest of your life.