IRS Appeals

When you disagree with an IRS decision, you do not always have to accept the outcome or rush straight into court. In many cases, you have a second, more strategic opportunity to resolve the dispute through IRS Appeals. The IRS Office of Appeals is designed to provide an independent review of many examination and collection disputes, with the goal of settling matters fairly and efficiently without litigation. The process can be powerful, but it is also procedural, deadline driven, and document intensive. A well prepared appeal can reduce a proposed assessment, limit penalties, create workable payment terms, or stop escalating enforcement actions. A poorly handled appeal can do the opposite.

Frazier Law helps individuals, business owners, and professionals pursue IRS Appeals as part of a larger IRS defense strategy. Led by principal attorney Charles R. Frazier and certified public accountant (CPA) Rick Miller, Frazier Law has been helping people since 2009 with tax controversies and IRS defense. Our practice is multi state, with federal authority and licensure in Tennessee, Michigan, and Texas, and we handle complex federal tax matters regardless of location. Charles is a former IRS agent, holds an LL.M in Taxation from The University of Alabama in Tuscaloosa, and is also a Chartered Financial Consultant (ChFC) through The American College of Financial Services. That mix of legal and financial experience matters in Appeals, where facts, law, and practical risk assessment all meet.

What IRS Appeals Is and Why It Matters

IRS Appeals is a separate function within the IRS that reviews certain disputes after an examination or during collection. Appeals Officers are not part of the audit team, and the Appeals mission is to resolve tax controversies without litigation on a basis that is fair and impartial to both the taxpayer and the government. Appeals is not a “second audit” where you simply repeat the same arguments. It is a structured negotiation informed by law and by an analysis known as the “hazards of litigation,” which means the risk each side faces if the dispute ends up in court.

Appeals can be the best forum for resolving issues that involve judgment calls, documentation disputes, valuation questions, reasonable cause penalty arguments, or competing interpretations of tax law. It can also be a place to correct misunderstandings, clarify factual gaps, and present a coherent narrative that was not fully developed during the audit. That said, Appeals is not the right fit for every situation. Some cases require immediate litigation planning, some require collection protection first, and some are better resolved through other administrative routes. The key is choosing the right path at the right time, and meeting every deadline along the way.

Independence, Hazards of Litigation, and Negotiated Resolution

Appeals often evaluates whether the government would likely win in court, whether the taxpayer would likely win, and where a reasonable settlement lies in between. This does not mean Appeals “splits the difference” automatically. It means that if a factual or legal issue is uncertain, Appeals may recommend a settlement that reflects that uncertainty. For example, if your documentation supports a deduction but has weaknesses, Appeals may consider how a court might weigh the evidence. If the IRS relied on an aggressive position that a court might reject, Appeals may be more open to narrowing the adjustment.

In well developed cases, Appeals can reduce the amount assessed, remove certain penalties, or resolve multiple tax years with one consistent framework. The most important point is that Appeals usually rewards preparation. The better the record, the clearer the legal argument, and the more credible the financial presentation, the more leverage you tend to have.

Common Situations Where an IRS Appeal Can Help

Many taxpayers assume Appeals is only for audits, but Appeals touches a wide range of controversies. Frazier Law routinely sees Appeals as the turning point that moves a client from uncertainty to resolution, especially when the dispute has grown beyond a simple misunderstanding.

Audit and Examination Disputes

If the IRS proposes changes after an audit, Appeals may be available after you receive certain notices or after you submit a formal written protest. Examination Appeals can involve issues such as substantiation of deductions, classification of income, payroll tax determinations, basis calculations, depreciation, passive activity limitations, or the tax treatment of business expenses. Appeals may also address accuracy related penalties, late filing penalties, and other additions to tax when reasonable cause arguments apply.

Collection Disputes and Enforcement Actions

Appeals can also apply when the dispute is about collection, not the underlying liability. If the IRS files a federal tax lien, issues a levy notice, or initiates certain enforcement actions, you may have rights to request review. Depending on the notice and the situation, you may be able to challenge the appropriateness of collection action, propose alternatives such as an installment agreement or offer in compromise, or argue that the IRS failed to follow required procedures.

Penalty Relief and Interest Related Issues

Appeals may be a forum to contest penalties when you can show reasonable cause, reliance on professional advice in appropriate circumstances, casualty events, medical emergencies, natural disasters, or other facts that support relief. While interest is generally statutory and harder to reduce, there are limited circumstances where interest abatement may be available, such as certain IRS delays or errors. These issues require careful screening, because the standards are specific and the documentation must be consistent.

Innocent Spouse and Related Relief Requests

If you are facing liability from a joint return and believe you qualify for relief as an innocent spouse or under related provisions, Appeals may review the denial of a request or consider the fairness factors in dispute. These cases are sensitive and fact heavy. They also demand careful handling to avoid inconsistent statements and to present the story clearly.

The Two Main “Tracks” of IRS Appeals

Not every appeal looks the same. The “right” track depends on whether you are dealing with an examination dispute, a collection dispute, or both. It also depends on where you are in the IRS timeline.

Examination Appeals After a Proposed Assessment

Examination Appeals often occurs after the IRS proposes changes and you dispute them. In many cases, the IRS will issue a written report and you may receive a “30 day letter” that explains your rights to request Appeals consideration. Some cases require a formal written protest that lays out the issues, facts, and legal support. Smaller cases may qualify for a simpler written request, but the strategic goal remains the same: build the record, frame the dispute, and present a clear position that Appeals can evaluate.

If an issue is not resolved and the IRS issues a statutory notice of deficiency, that notice typically opens a separate path to U.S. Tax Court. Appeals may still be available in certain circumstances, but your deadlines and options change dramatically at that stage. Timing is everything.

Collection Appeals During IRS Enforcement

Collection Appeals can arise from lien filings, levy notices, rejected installment agreements, proposed termination of agreements, or other collection actions. Some procedures allow a Collection Appeals Program (CAP) request, and others allow a Collection Due Process (CDP) hearing. These are not interchangeable. They have different rules, different timelines, and different consequences. A CDP hearing, for example, may allow judicial review in Tax Court if you disagree with the outcome, while CAP typically does not. Your ability to challenge the underlying tax debt may also depend on whether you previously had an opportunity to dispute it. Frazier Law focuses on selecting the approach that protects your rights and matches your long term resolution plan.

What Happens During an IRS Appeals Conference

An Appeals conference is usually a structured discussion between the taxpayer or representative and an Appeals Officer. It may be conducted by phone, video, correspondence, or in person depending on the case and the office. The purpose is to understand the disputed issues, review supporting documentation, consider the applicable law, and discuss resolution options. It is not a casual conversation. It is a negotiation that depends on the strength of the record.

A successful conference often begins long before the first call. Preparation typically includes organizing exhibits, identifying missing records, clarifying the timeline, and drafting a persuasive narrative that ties facts to the legal standard. It also includes anticipating the IRS viewpoint. In Appeals, credibility matters. Consistency matters. The ability to answer questions without overreaching matters.

Ex Parte Rules and Clean Communication

Appeals is subject to rules intended to preserve independence, including limits on certain “ex parte” communications between Appeals and other IRS functions. Those rules can affect how information is shared and how disputes are framed. In practical terms, it means you want a clean, well documented presentation that does not rely on informal back channels. When we represent a client, we focus on building a submission that stands on its own.

Documentation and Issue Framing

Appeals Officers review what is in the administrative file, but they also consider new information in many circumstances. The earlier you identify documentation gaps, the better. For some disputes, the documents are the case. For others, the logic is the case, such as when the question turns on how the law applies to your facts.

A few examples of documentation that often matters include:

• Accounting records that reconcile to returns and financial statements
• Bank statements and third party confirmations
• Receipts, invoices, mileage logs, and business purpose documentation
• Payroll records and employment tax filings
• Appraisals or valuation support when value is disputed
• Written contracts, emails, or internal policies that show intent and practice

We keep lists like this practical and tailored, because the real question is not “what could the IRS ask for,” it is “what will prove the point we need to prove.”

Deadlines and Procedural Traps to Avoid

One of the most common reasons taxpayers lose leverage is not the merits. It is timing. Appeals rights are often triggered by specific notices, and the time to request Appeals review can be short. Missing a deadline can force you into a less favorable posture, limit your options, or push the case into collection faster than you expected.

Deadlines can also affect whether you can go to Tax Court without paying first, whether you can pause collection activity, and whether you can challenge the underlying liability in a collection setting. Because notice language can be confusing, and because not all IRS letters carry the same rights, it is important to evaluate the letter you received and act quickly and correctly.

Strategy: When to Settle in Appeals and When to Prepare for Litigation

Appeals is designed to resolve cases, but settlement should still be strategic. Sometimes a taxpayer has an extremely strong legal position and should not concede simply to end the matter. Other times, the risk and cost of litigation outweigh the potential savings, especially when documentation is imperfect or the dispute involves uncertain factual interpretation. In many cases, the best approach is to negotiate from strength while keeping litigation readiness in the background. If the case later moves to Tax Court, the quality of your administrative record and your early positioning can still matter.

Frazier Law approaches Appeals as part of a complete plan. We do not treat it as a standalone event. We assess the underlying issues, the financial consequences, the penalty exposure, and the client’s broader objectives. For business owners, that includes cash flow impact, payroll obligations, banking relationships, and the operational realities of staying compliant going forward.

How Frazier Law Helps with IRS Appeals

IRS Appeals is not just a form filing. It is a process that rewards careful legal analysis, disciplined fact development, and clear communication. Our team is structured to address both the technical and practical sides of a federal tax dispute.

We help clients by reviewing the audit or collection file, identifying the true points of disagreement, and determining whether Appeals is the best forum. We prepare written protests and Appeals requests that focus on the issues that matter, supported by the right documents and the right legal authorities. We represent clients in conferences and negotiations, and we keep the strategy aligned with the end goal, whether that is reduction of tax, removal of penalties, a workable collection alternative, or positioning for litigation when necessary.

Charles R. Frazier’s experience as a former IRS agent provides insight into how cases are built inside the agency and how IRS personnel evaluate documentation and arguments. Rick Miller’s CPA background strengthens the financial and accounting side of the submission, which is often the foundation for credibility. Together, the firm provides a practical, detail oriented approach that is designed to resolve disputes, not just react to them.

Multi State Representation and Federal Focus

Because IRS matters are federal, taxpayers often assume they must work with someone local to the IRS office involved. In reality, what matters most is competence, experience, and the ability to navigate the federal process. Frazier Law is licensed in Tennessee, Michigan, and Texas, and we handle complex federal tax matters regardless of location. If you are dealing with an IRS notice in one state while you live or operate your business in another, we can still build a coordinated strategy that fits your circumstances.

What You Can Do Now If You Are Considering an Appeal

If you are thinking about an IRS appeal, the most helpful step you can take right now is to get organized and avoid unforced errors. Keep every notice and envelope. Track dates. Collect the records that support your position. Avoid sending partial explanations that create inconsistencies. Most importantly, do not assume the dispute will “work itself out” if you wait. The IRS timeline usually moves forward unless you act.

If you are already in the middle of an audit or facing collection activity, your options may still be open, but they may be narrowing. An early review can clarify what path makes the most sense and what deadlines apply.

Talk to Frazier Law About IRS Appeals

An IRS appeal can be your best chance to correct an unfair outcome, reduce a proposed assessment, protect your assets, and regain control of the situation. It can also be the moment where a case either becomes manageable or becomes far more expensive than it needed to be. The difference is often preparation and strategy.

Frazier Law has helped people since 2009 with tax controversies and IRS defense, and we are ready to help you evaluate your Appeals options. Whether you are challenging an audit result, responding to a lien or levy notice, or seeking a practical resolution that matches your financial reality, we can guide you through the Appeals process with a plan that is clear, detailed, and built for results. Contact Frazier Law to discuss your situation and take the next step toward resolving your IRS dispute.