IRS Appeals

When an IRS audit produces results that you believe are incorrect or unfair, the next step is the IRS Independent Office of Appeals. The Appeals process provides taxpayers with an important opportunity to resolve disputes without the time, expense, and uncertainty of litigation. At Lanphier LLP, we represent clients through every phase of the IRS Appeals process, presenting well-documented positions and negotiating toward resolutions that reflect the merits of each case.

The IRS Appeals Office is designed to be independent from the examination function. Appeals officers are experienced professionals who have the authority to settle cases based on the hazards of litigation -- meaning they can consider the likelihood that the IRS would prevail if the case went to court, and they can make concessions accordingly. This creates a genuine opportunity for resolution, but only if your case is presented effectively.

When to Appeal

Not every audit determination warrants an appeal, and not every case is best served by the Appeals process. We carefully evaluate the facts and law underlying your dispute to determine whether Appeals is the right forum. Factors we consider include:

• The strength of your legal position on the disputed issues
• The quality and completeness of the documentation supporting your position
• The dollar amount at stake and the cost-benefit analysis of continuing the dispute
• Whether new facts or legal arguments are available that were not fully developed during the audit
• The likelihood of achieving a better outcome in Appeals versus Tax Court or other forums

The Appeals Process

Filing an appeal begins with a formal written protest -- a detailed document that sets out the facts, identifies the issues in dispute, and presents the legal arguments supporting your position. The quality of this protest is critical, as it forms the foundation for all subsequent discussions with the Appeals officer.

Our team prepares thorough, well-researched protests that clearly articulate why the audit determination is incorrect or excessive. We support our arguments with relevant case law, IRS guidance, and factual documentation. When the Appeals conference takes place -- whether in person at the Denver IRS office, by telephone, or by video -- we present your case persuasively and negotiate for the most favorable resolution available.

Settlement and Resolution

The Appeals process often results in a settlement that splits the difference between the taxpayer's position and the IRS examination position. However, the specific outcome depends entirely on the strength of the case. In many instances, we have achieved full or near-full concessions from the IRS when the facts and law clearly support our client's position. In other cases, a reasonable settlement that avoids the costs and risks of litigation is the best outcome.

If Appeals does not produce an acceptable resolution, the next step may be a petition to the United States Tax Court. Our integrated controversy practice means that we can seamlessly transition from Appeals to litigation without the disruption of bringing in new counsel who must learn your case from scratch.