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Will An IRS Administrative Appeal Help Me With Bad Audit Results?

Will An IRS Administrative Appeal Help Me With Bad Audit Results?

It is always stressful to be the subject of an audit in which problems were found with your taxes. However, it is important to remain calm in this situation because solutions may be available. There is always a chance that the results were a mistake, or are unjust. As a taxpayer, tax court exists as a place where you can formally dispute negative audit findings. However, filing an administrative appeal can help you avoid court in the first place.

An administrative appeal is a process by which you can initially dispute audit findings by telephone, mail, or in-person. The two types of administrative hearings are Collections Due Process (CDP) hearings and Collections Appeal Process (CAP) hearings. Working with a qualified tax professional can help you determine whether or not an administrative appeal is the best route for you, and if so, which type of administrative appeal you need to use. Attorneys Tax Relief is available for this purpose to give you expert advice.

The difference between a CAP and a CDP is that a CAP is completely separate from tax court, whereas the CDP is viewed as the first step to attending tax court. For example, if you disagree with the findings of the CAP, the findings will be final. However, if you disagree with the findings of the CDP, the next step will be to take the dispute to tax court.

Before beginning the process, you should immediately obtain the paperwork from the auditor’s file, which you can legally do under the Freedom of Information Act. However, sometimes this process can be lengthy so it is best to start with this first.

Once you file your administrative appeal, you will have about 60 days before your hearing. The hearing is very informal, but it is important to be fully prepared. Take the time to go over the auditor’s files, making notes and building a case as to why the audit is wrong. For this process, you can represent yourself or be represented by an attorney, an accountant, or anyone qualified to do this. However, it is important to note that you cannot be represented by any organization or individual who prepared your taxes.

If an agreement is made during the hearing, make sure that you understand the results and that the results have been recorded. There may not be an easy way to change the recorded results. Sign everything, but only after being sure you are happy with the conclusion. If you are not happy with the conclusion, you can take it to court if you have a CDP. If you need to hire a professional for these processes, Attorneys Tax Relief can provide these services.