What If You Must Petition The U.S. Tax Court To Get To IRS Appeals

by Bruce Givner on October 6, 2011

Sometimes the IRS auditor will not complete the audit of your income tax return until there is less than one year left on the normally applicable three year statute of limitations. Assume you filed your 2008 personal return on April 15, 2009. The IRS has until April 15, 2012 to complete an audit. So if it is now October 1, 2011, the Internal Revenue Service will not let you go to the IRS Appeals Division. The IRS will issue a “90 Day Letter,” which means you have 90 days to pay the tax or file a formal tax court petition in Tax Court to avoid having to pay the tax.

Assume your goal is to get your matter away from the auditor and into the hands of the IRS Appeals Division because you have NEW FACTS and NEW ARGUMENTS, and you believe that the IRS Appeals Division will give you a better result based on the “hazards of litigation.” Filing a tax court petition in the United States Tax Court is not a major hurdle. In many situations we can meet with you and your accountant; review the audit files; analyze the issues and arguments; prepare the Tax Court petition; talk to the IRS Attorney assigned to your matter; get your matter assigned to the IRS Appeals Division; and review the ultimate settlement agreement for less than $20,000. If your matter involves $150,000 or more and you believe that the IRS Appeals Division will give you a 50% deal, then this is an attractive alternative. In other words, filing a petition in Tax Court as a way to get to the IRS Appeals Division is an affordable approach as compared to giving up in an audit.

{ 5 comments… read them below or add one }

admin October 7, 2011 at 2:17 pm

We appreciate the feedback. If you have any questions, let us know.

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Reed October 14, 2011 at 8:57 am

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admin October 14, 2011 at 11:09 am

That’s very kind. Thank You

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Maisyn October 27, 2011 at 3:49 pm

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Boston October 29, 2011 at 8:46 pm

I love reading these articles because they’re short but informative.

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