Understanding the IRS Appeal Process
Receiving a notice from the IRS can be unsettling, but it’s important to remember that you have the right to appeal their decision. The IRS allows taxpayers to challenge determinations if they disagree with them. A well-crafted appeal letter is crucial in presenting your case clearly and effectively. This document is your opportunity to explain why you believe the IRS’s findings are incorrect and to provide supporting documentation. It’s vital to follow the IRS’s guidelines carefully to ensure your appeal is properly considered.
Key Elements of a Successful Appeal Letter
An effective IRS appeal letter includes several key components. Start with a clear and concise statement of the IRS’s decision you are appealing. Provide your name, address, Social Security number (or Employer Identification Number if applicable), and the tax year in question. Clearly state the reasons why you disagree with the IRS’s determination. Support your arguments with relevant documentation, such as receipts, bank statements, and prior tax returns. Finally, request a specific outcome, such as an abatement of penalties or a reconsideration of the tax assessment.
Dos and Don’ts for Writing Your Appeal
When writing your appeal, maintain a professional and respectful tone. Avoid emotional language or personal attacks. Stick to the facts and present your case logically. Ensure all information is accurate and verifiable. Do keep a copy of your letter and all supporting documents. Don’t ignore deadlines; missing the deadline for filing an appeal can jeopardize your chances of a favorable outcome. Do send your letter via certified mail with return receipt requested to have proof of delivery. Don’t send original documents unless specifically requested by the IRS.
When to Seek Professional Help
Navigating the IRS appeal process can be complex. If you’re unsure about how to proceed, it’s wise to consult with a qualified tax professional, such as a CPA, enrolled agent, or tax attorney. They can help you assess your situation, prepare a compelling appeal letter, and represent you before the IRS if necessary. Having professional guidance can significantly increase your chances of a successful outcome, especially if the amount in dispute is substantial or the issues are intricate.
19 IRS Appeal Letter Samples
(Note: These are sample formats. Adapt them to your specific situation. Consult a tax professional for personalized advice.)
Sample 1: Penalty Abatement Request
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Request for Penalty Abatement
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am writing to request an abatement of penalties assessed for the tax year [Tax Year]. I received notice [Notice Number] dated [Date of Notice] regarding these penalties.
The reason for the late filing/payment was due to [Explain Reason – e.g., serious illness, death in the family, natural disaster]. I have attached [Supporting Documentation – e.g., doctor’s note, death certificate, insurance claim] to support my claim.
I have a history of timely filing and payment of taxes. I respectfully request that the penalties be abated.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 2: Disputing an Audit Finding
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Appeal of Audit Findings
Tax Year: [Tax Year]
SSN: [Your SSN]
Audit Case Number: [If Available]
Dear Sir or Madam,
I am writing to appeal the findings of the audit for the tax year [Tax Year], as detailed in the Notice of Deficiency dated [Date of Notice]. I disagree with the assessment regarding [Specifically Identify the Disputed Item – e.g., the disallowance of business expenses].
My disagreement stems from [Clearly Explain Your Reasoning – e.g., these expenses were ordinary and necessary business expenses, as evidenced by the attached receipts and records]. I am including [List of Attached Documents – e.g., copies of invoices, bank statements, contracts] as supporting documentation.
I request a review of my appeal and reconsideration of the assessment. I am available to provide further clarification or documentation if needed.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 3: Responding to a Notice of Deficiency
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Response to Notice of Deficiency
Tax Year: [Tax Year]
SSN: [Your SSN]
Notice Number: [Notice Number]
Dear Sir or Madam,
This letter is in response to the Notice of Deficiency (Notice Number: [Notice Number]) I received on [Date of Notice] for the tax year [Tax Year]. I disagree with the proposed increase in tax liability.
Specifically, I dispute the adjustment to [Explain the Specific Adjustment – e.g., the calculation of my self-employment tax]. The reason for my disagreement is [Provide Your Justification – e.g., I believe the calculations are based on incorrect information, and I have attached corrected schedules].
Attached are the corrected [Relevant Schedules – e.g., Schedule C, Schedule SE] and supporting documentation [List Supporting Documents – e.g., profit and loss statements, bank statements]. I request that you review these documents and adjust my tax liability accordingly.
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 4: Innocent Spouse Relief Request
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Request for Innocent Spouse Relief
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am writing to request Innocent Spouse Relief under Section 6015 of the Internal Revenue Code for the tax year [Tax Year]. I believe I qualify for this relief because [Briefly Explain Why You Believe You Qualify – e.g., I did not know, and had no reason to know, that my spouse was underreporting income].
The deficiency arises from [Explain the Source of the Deficiency – e.g., unreported income from my spouse’s business]. I was unaware of this income and did not benefit from it. My ex-spouse had complete control over our finances.
I have attached Form 8857, Request for Innocent Spouse Relief, and supporting documentation [List Supporting Documents – e.g., divorce decree, affidavits from friends/family]. I respectfully request that you consider my application for relief.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 5: Challenging Estimated Tax Penalties
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Appeal of Estimated Tax Penalties
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am writing to appeal the estimated tax penalties assessed for the tax year [Tax Year]. I received Notice [Notice Number] on [Date of Notice] regarding these penalties.
I understand that estimated tax payments are required if sufficient tax is not withheld from wages. However, in [Tax Year], my income changed significantly due to [Explain the Reason for the Change – e.g., loss of job, unexpected medical expenses, a significant increase in self-employment income]. I was not aware of the need to increase my estimated tax payments until late in the year.
I have since adjusted my withholding/estimated tax payments to avoid future penalties. I request that you waive the penalties for [Tax Year] based on these unusual circumstances. I am attaching [Supporting Documents – e.g., proof of job loss, medical bills, amended tax returns].
Thank you for your consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 6: Requesting Installment Agreement
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Request for Installment Agreement
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am writing to request an installment agreement to pay the outstanding tax liability for the tax year [Tax Year], as detailed in Notice [Notice Number] received on [Date of Notice]. I am currently unable to pay the full amount due at this time due to financial hardship.
My current financial situation is as follows: [Briefly describe your income, expenses, assets, and liabilities]. I am [Employed/Unemployed/Self-Employed] and my monthly income is approximately [Amount]. My monthly expenses are approximately [Amount].
I am proposing to pay [Amount] per month until the liability is satisfied. I have enclosed Form 9465, Installment Agreement Request, with this letter, along with supporting documentation [List Supporting Documents – e.g., pay stubs, bank statements]. I believe this is a reasonable and affordable payment plan for my current circumstances.
Thank you for considering my request.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 7: Offer in Compromise (OIC)
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Offer in Compromise
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am submitting this letter along with Form 656, Offer in Compromise, to request an agreement to resolve my outstanding tax liability for the tax year(s) [Tax Year(s)]. I am offering to pay [Amount] as a compromise of the total amount owed.
I believe that an Offer in Compromise is warranted because [Explain Your Reason – e.g., doubt as to liability, doubt as to collectibility, or effective tax administration]. My financial situation is such that I am unable to pay the full amount of the tax liability due to [Explain Specific Circumstances – e.g., significant medical expenses, job loss, long-term illness].
My assets include [List Your Assets – e.g., bank accounts, real estate] and my liabilities include [List Your Liabilities – e.g., mortgages, credit card debt]. Detailed information is provided on Form 433-A (OIC) and Form 433-B (OIC), which are included with this submission. I believe the offered amount represents the most that the IRS can reasonably expect to collect from me.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 8: Response to Intent to Levy
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Response to Notice of Intent to Levy
Tax Year: [Tax Year]
SSN: [Your SSN]
Notice CP90/CP504
Dear Sir or Madam,
I am writing in response to the Notice of Intent to Levy, Notice CP90/CP504, I received on [Date of Notice] regarding unpaid taxes for the tax year [Tax Year]. I understand that the IRS intends to levy my [Wages/Bank Accounts/Property].
I am taking immediate steps to resolve this issue. [Choose ONE of the following and adapt it to your situation]:
* Option 1 (Paying in Full): I am sending a check for the full amount of the tax liability with this letter.
* Option 2 (Installment Agreement): I am requesting an installment agreement to pay the tax liability over time. I have included Form 9465, Installment Agreement Request, with this letter.
* Option 3 (Offer in Compromise): I am submitting Form 656, Offer in Compromise, to request a compromise of the amount owed.
* Option 4 (Currently Not Collectible): My current financial situation is dire and I believe I may qualify for Currently Not Collectible (CNC) status. I am preparing Form 433-F, Collection Information Statement, to submit for your review.
I would appreciate it if you would refrain from levying my assets while I am working to resolve this matter.
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 9: Request for Currently Not Collectible (CNC) Status
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Request for Currently Not Collectible (CNC) Status
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am writing to request that my account be placed in Currently Not Collectible (CNC) status due to my severe financial hardship. I am unable to pay the outstanding tax liability for the tax year [Tax Year] because my essential living expenses exceed my income.
I have attached Form 433-F, Collection Information Statement, which provides detailed information about my income, expenses, assets, and liabilities. As you will see, my monthly expenses include [List Key Expenses – e.g., rent, utilities, food, medical expenses] and significantly exceed my monthly income of [Amount]. I have no assets of significant value that can be liquidated to pay the tax debt.
I am committed to complying with my future tax obligations. I respectfully request that you consider my application for CNC status at this time.
Thank you for your consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 10: Requesting a Collection Due Process (CDP) Hearing
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Request for Collection Due Process (CDP) Hearing
Tax Year: [Tax Year]
SSN: [Your SSN]
Notice: [Notice Number – CP504, CP90, etc.]
Dear Sir or Madam,
I am writing to request a Collection Due Process (CDP) hearing regarding the notice I received [Date of Notice], identified as [Notice Number – CP504, CP90, etc.], concerning the tax year [Tax Year]. I wish to exercise my right to a hearing before an impartial Appeals officer.
The reason for my request is [Explain Your Reason – e.g., I believe the assessment is incorrect, I wish to discuss alternative payment options, I have already filed an appeal and received no response]. I intend to raise the following issues at the hearing: [List the Issues You Plan to Raise – e.g., validity of the assessment, suitability of the proposed collection action, eligibility for an Offer in Compromise].
I understand that I must request this hearing within 30 days of the date of the notice. I look forward to hearing from you regarding the scheduling of this hearing.
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 11: Disputing a Frivolous Tax Penalty
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Appeal of Frivolous Tax Penalty (IRC Section 6702)
Tax Year: [Tax Year]
SSN: [Your SSN]
Notice Number: [Notice Number]
Dear Sir or Madam,
I am writing to appeal the frivolous tax penalty assessed under IRC Section 6702, as detailed in Notice [Notice Number] received on [Date of Notice]. I believe this penalty was incorrectly assessed.
The reason for the assessment, as I understand it, is [Explain the IRS’s Reason for Assessing the Penalty]. However, my [Tax Return/Submission/Action] was not frivolous because [Explain Why It Was Not Frivolous – e.g., it was based on a good-faith interpretation of the law, it was supported by valid documentation, it was not intended to delay or impede the administration of the tax laws].
I respectfully request that you review the circumstances and remove the frivolous tax penalty. I am including [Supporting Documents – e.g., copy of tax return, legal opinions] to support my position.
Thank you for your consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 12: Request for a Taxpayer Advocate Service (TAS) Assistance
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Taxpayer Advocate Service
[Local TAS Office Address – Find on IRS Website]
Re: Request for Taxpayer Advocate Service Assistance
Tax Year: [Tax Year]
SSN: [Your SSN]
Issue: [Briefly State Your Issue]
Dear Taxpayer Advocate,
I am writing to request assistance from the Taxpayer Advocate Service (TAS) because I am experiencing significant difficulties resolving a tax issue with the IRS. I have been unable to resolve this issue through normal IRS channels.
The issue involves [Explain the Issue Clearly and Concisely – e.g., an incorrect assessment, delayed refund, inability to reach a payment agreement]. I have taken the following steps to resolve this issue [List Steps Taken – e.g., contacted the IRS by phone, sent letters, filed forms]. Despite these efforts, the issue remains unresolved.
I believe that TAS intervention is necessary to [Explain What You Hope TAS Can Accomplish – e.g., expedite the resolution, review my case, ensure fair treatment]. I am including copies of [List Supporting Documents – e.g., IRS notices, correspondence, tax returns].
Thank you for your time and consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 13: Responding to an Information Document Request (IDR)
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
[IRS Agent Name]
Internal Revenue Service
[IRS Agent Address]
Re: Response to Information Document Request (IDR)
Tax Year: [Tax Year]
SSN: [Your SSN]
IDR Number: [IDR Number – If Available]
Dear [IRS Agent Name],
This letter is in response to your Information Document Request (IDR), [IDR Number – If Available], dated [Date of IDR], concerning the tax year [Tax Year].
I am providing the following information and documents as requested: [List the Documents You Are Providing – e.g., copies of invoices, bank statements, receipts]. The attached documents support [Explain What the Documents Support – e.g., the deduction for business expenses, the calculation of cost of goods sold].
[If you are unable to provide certain documents, explain why – e.g., “Unfortunately, I am unable to locate [Document Name] at this time, but I am continuing to search for it.” or “I object to providing [Document Name] on the grounds that it is not relevant to the audit.”].
Please let me know if you require any further information. I am happy to cooperate fully with your audit.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 14: Appealing a Lien Notice
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on Notice]
Re: Appeal of Federal Tax Lien
Tax Year: [Tax Year]
SSN: [Your SSN]
Lien Date: [Date of Lien]
Dear Sir or Madam,
I am writing to appeal the filing of the Federal Tax Lien on [Date of Lien] concerning my unpaid tax liability for the tax year [Tax Year]. I believe the lien should be withdrawn or modified for the following reasons:
[Explain the Reasons for Your Appeal. Choose one or more, and adapt them to your situation]:
* Incorrect Assessment: I believe the underlying tax assessment is incorrect. I am in the process of appealing the assessment itself.
* Financial Hardship: The lien is causing significant financial hardship and preventing me from obtaining credit necessary to operate my business or maintain my livelihood.
* Alternative Payment Arrangements: I am actively working with the IRS to establish an installment agreement or other payment arrangement.
* Lien Affects Third Party: The lien is improperly affecting the credit or property rights of a third party (e.g., a business partner, a family member).
I have enclosed [Supporting Documents – e.g., proof of hardship, offer in compromise application, documentation of third-party ownership]. I respectfully request that you review this matter and take steps to withdraw or modify the lien.
Thank you for your attention to this matter.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 15: Requesting a Transcript of Account
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address – No Specific Address Needed]
Re: Request for Tax Account Transcript
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am writing to request a tax account transcript for the tax year [Tax Year]. I need this transcript to [Explain the Reason for the Request – e.g., verify payments made, reconcile my records, prepare an amended tax return].
Please send the tax account transcript to the address listed above. I understand that I can also obtain a transcript online through the IRS website, but I prefer to receive a paper copy at this time.
Thank you for your assistance.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 16: Claiming a Refund After the Statute of Limitations Has Expired
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[Address where you normally file tax returns for that tax year]
Re: Claim for Refund – Statute of Limitations Expired
Tax Year: [Tax Year]
SSN: [Your SSN]
Dear Sir or Madam,
I am writing to request a refund for the tax year [Tax Year]. I understand that the normal statute of limitations for claiming a refund has expired. However, I believe that an exception to the statute of limitations applies in my case.
[Clearly and concisely explain the circumstances that justify an exception to the statute of limitations. Examples include:
* Financial Disability: Explain how a financial disability prevented you from managing your financial affairs and filing a timely claim. Provide medical documentation if possible.
* Erroneous Advice from the IRS: Provide documentation that you received incorrect written advice from the IRS that directly caused the overpayment and the failure to file a timely claim.
I have attached [Supporting Documents – e.g., medical records, copies of IRS correspondence, amended tax return (Form 1040-X)]. I respectfully request that you consider my claim for a refund despite the expired statute of limitations.
Thank you for your consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 17: Requesting Abatement of Interest
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on the Notice]
Re: Request for Abatement of Interest
Tax Year: [Tax Year]
SSN: [Your SSN]
Notice Number: [Notice Number]
Dear Sir or Madam,
I am writing to request an abatement of interest assessed on my tax liability for the tax year [Tax Year]. I received Notice [Notice Number] on [Date of Notice] indicating that interest is due.
I believe that the interest should be abated because the delay in paying the tax was due to [Explain the Reason for the Delay – e.g., errors or delays by the IRS, circumstances beyond your control, undue delay in performing a ministerial act]. Specifically, [Provide a detailed explanation of the events that caused the delay].
I am attaching [Supporting Documents – e.g., copies of IRS correspondence, records of phone calls, documentation of relevant events]. I respectfully request that you review this matter and abate the interest charges.
Thank you for your consideration.
Sincerely,
[Your Signature]
[Your Typed Name]
Sample 18: Responding to a Notice of Intent to Terminate an Installment Agreement
[Your Name]
[Your Address]
[Your City, State, Zip Code]
[Date]
Internal Revenue Service
[IRS Address Listed on the Notice]
Re: Response to Notice of Intent to Terminate Installment Agreement
Tax Year: [Tax Year]
SSN: [Your SSN]
Installment Agreement Number: [If Available]
Dear Sir or Madam,
I am writing in response to the Notice of Intent to Terminate Installment Agreement that I received on [Date of Notice]. I understand that the IRS intends to terminate my installment agreement because [State the Reason the IRS Gave for Termination – e.g., I missed a payment, I failed to file a subsequent tax return].
[Explain why the missed payment or non-filing occurred. Provide a compelling reason and explain what steps you are taking to rectify the situation. Examples include:
* Missed Payment: “I missed the payment due to a temporary financial setback caused by [Explain Reason – e.g., unexpected medical expenses, job loss]. I am sending the missed payment now and will ensure all future payments are made on time.” Enclose a payment for the missed amount.
* Failure to File: “I failed to file my [Tax Year] tax return due to [Explain Reason – e.g., serious illness, difficulty gathering records]. I have now prepared the return and am submitting it with this letter.” Enclose the completed tax return.
* Dispute IRS claim on termination “I believe termination is unwarranted. The failure to pay/file occurred from circumstance beyond my control and are temporary and unlikely to occur again.”
I am committed to fulfilling the terms of the installment agreement. I respectfully request that you reconsider the termination and allow me to continue making payments as agreed.
Thank you for