Federal Estate Tax

Lesson 47: Appealing an Audit Decision

Welcome to Lesson 47: Appealing an Audit Decision in our comprehensive guide on the Audit and Appeals Process in the context of Federal Estate Tax Law. In this lesson, we will explore the steps to take when you disagree with an audit decision by the IRS.

Understanding the Appeals Process

If you disagree with the results of an estate tax audit, you have the right to appeal the decision. The appeals process allows you to present your case to an independent body within the IRS called the Office of Appeals.

The Office of Appeals is separate from the IRS office that conducted your audit. Its mission is to resolve tax controversies without litigation.

Steps to Appeal an Audit Decision

The steps to appeal an audit decision are as follows:

Receive the Audit Report: Review the audit report and the accompanying documentation carefully.
Submit a Formal Protest: If you disagree with the findings, you must submit a written protest.
Prepare Your Case: Gather supporting documentation and prepare to present your case to the Office of Appeals.
Attend the Appeals Conference: You may be invited to attend a conference to discuss your case.
Receive the Appeals Decision: The Office of Appeals will issue a decision based on your appeal.

Submitting a Formal Protest

To submit a formal protest, your written statement must include:

Your name, address, and a daytime telephone number.
A statement that you want to appeal the IRS findings to the Office of Appeals.
A copy of the letter showing the proposed changes and the tax periods involved.
An itemized schedule of the adjustments with which you disagree.
A statement of facts supporting your position on any issue with which you disagree.
A statement of the law or authority, if any, on which you rely.
Your signature under the penalty of perjury.

Example of a Formal Protest

Your Name

Your Address

Your City, State, ZIP Code

Daytime Telephone Number



To: Internal Revenue Service



I want to appeal the IRS findings regarding my estate tax returns for the tax periods ending [Date]. I disagree with the following proposed changes:

- Adjustment 1: [Description]

- Adjustment 2: [Description]



[Statement of Facts]

[Statement of Law or Authority]



I declare under penalty of perjury that this statement is true and correct.



[Signature]

[Date]

Appeals Process Flowchart

flowchart TD A["Receive Audit Report"] --> B["Submit Formal Protest"] B --> C["Prepare Your Case"] C --> D["Attend Appeals Conference"] D --> E["Receive Appeals Decision"]

Key Considerations

Ensure you meet all deadlines when submitting your protest.
Be thorough in gathering supporting documentation.
Consider consulting with a tax professional to strengthen your case.

If you have any questions or need further guidance, please refer to our lessons on Understanding Estate Tax Audits and Responding to an Audit Notice.

Conclusion

Appealing an audit decision can be a complex process, but understanding the steps involved and preparing thoroughly can significantly increase your chances of a favorable outcome. Remember, the goal of the appeals process is to resolve disputes without litigation, providing a fair resolution for both the taxpayer and the IRS.