Finding yourself in a tax controversy with the IRS can be a daunting and complex experience.
Although tax controversies are stressful, there are ways you can approach your dispute with IRS and pursue a favorable outcome to your case. It can be helpful to understand how tax litigation, appeals and audits work as you navigate your situation.
Understanding your options
After a tax audit, you have the ability to protest the results to the IRS Appeals Division if you find them disagreeable. In general, you need to file the appropriate paperwork within 30 days of receiving the letter of the findings of your audit. Some people work with a CPA and a tax attorney to help prepare documentation. If the IRS denies your appeal, you have a window of 90 days to pursue legal action by taking your case to tax court.
Going to tax court
Litigating your tax case in court can be time-consuming, so you should plan ahead and be patient. It is important to keep track of court deadlines and take action on time. You also need to gather crucial documents, such as business records and receipts, that help you present your case. Furthermore, you should retain any written communications you had with the IRS. After consulting with your CPA and tax lawyer, you can review the grounds for your appeal and determine a legal strategy to help you protect your interests in court.
Appealing tax findings and pursuing litigation in court can be challenging. Fortunately, you have legal options when a tax controversy with the IRS arises.