IRS appeals process: how to challenge an audit or collection decision

What does the IRS Independent Office of Appeals do?

The IRS Independent Office of Appeals settles tax disputes without going to court. Publication 5 describes it as an independent function, separate from the IRS division that proposed the change, and the only level of administrative appeal inside the IRS. Appeals officers weigh both sides' arguments and apply tax law, including court decisions, to the facts (IRS Publication 5).

IRS appeals cover far more than audits. Publication 5 lists penalty abatement denials, rejected offers in compromise, innocent spouse denials and penalty determinations, among others. Collection actions such as levies, liens and payment plan rejections have their own appeal routes, covered further down this page.

How do I appeal an IRS audit result?

You appeal an audit result by sending a written request to the address on the letter that proposed the changes, before the deadline printed on it. That letter is often called a 30-day letter; for mail audits it is commonly Letter 525. Do not sign the agreement form if you plan to appeal.

Before appealing, give the examiner every document you want considered. Publication 5 warns that new information raised for the first time at Appeals is usually sent back to the examining office, which delays the case. You can also ask for a conference with the examiner's manager first; many disputes end there.

Small case request or formal written protest

Example: an audit proposes $9,400 of extra tax and a $1,880 accuracy penalty for 2023. The total, $11,280, is under $25,000, so a one-page statement or Form 12203 is enough. If the same audit also proposed $26,000 for 2024, you would need a formal protest covering both years.

Preparing your protest

A formal written protest is a letter that states you want to appeal and sets out your case. Publication 5 says it must contain the following items. Missing pieces can delay the transfer to Appeals.

1. Your name, address and a daytime phone number.
2. A statement that you want to appeal the changes the IRS proposed.
3. The tax periods involved and a list of each disputed issue with the proposed change.
4. The facts supporting your position on each issue.
5. The law or authority, if any, that supports your position.
6. The penalties of perjury declaration from Publication 5, signed by you. A representative who prepares it signs a different declaration stating whether they know the facts personally.

Keep the protest factual and organized by issue. Attach exhibits, such as receipts or mileage logs, already given to the examiner so the Appeals officer has them in one place. Send it by a trackable method and keep a full copy.

What happens after you request an IRS appeal?

The examiner forwards your file to the IRS Appeals office, which contacts you to arrange a conference. Appeals conferences are informal and are usually held by phone or correspondence; the IRS Appeals website also describes virtual and in-person options. You can bring a representative or a witness.

Only attorneys, certified public accountants and enrolled agents can represent you at Appeals, using Form 2848. An unenrolled preparer may attend as a witness but cannot represent you. If you cannot afford help, a Low Income Taxpayer Clinic may represent you if you qualify.

The statute of limitations and Form 872

Publication 5 says an exam case generally needs more than 365 days left before the assessment deadline for Appeals to accept it. If less time remains, the IRS will ask you to sign an extension. If you refuse, Appeals will not take the case and the IRS will generally issue a notice of deficiency, leaving the Tax Court as your route. See the IRS audit statute of limitations for how the deadline works.

Fast Track Settlement and mediation

For some cases, you can ask for Fast Track Settlement while the case is still with the examiner. A specially trained Appeals employee acts as a neutral mediator, you can withdraw at any time, and you keep your normal appeal rights for anything left unresolved. The IRS also offers mediation for some collection and offer in compromise disputes.

How long does an IRS appeal take?

The IRS does not publish a standard time for appeals, and the length depends on the number of issues, how complete the file is when it arrives, and whether new information has to go back to the examiner. Plan for months rather than weeks for an audit appeal. Interest continues on any tax ultimately owed, but you can stop it on the amount you send by making a deposit while the appeal is pending.

Collection appeals move faster. The Collection Appeals Program is described by the IRS as generally giving a quicker decision than a Collection Due Process hearing, which is one reason people choose it for a single levy or lien issue.

Can I appeal a collection action?

Yes, through two programs described in Publication 1660, Collection Appeal Rights. The Collection Due Process (CDP) hearing is triggered by specific notices and allows later Tax Court review. The Collection Appeals Program (CAP) covers more actions but its decision is final.

For CAP, you normally ask for a conference with the collection manager first, then tell the revenue officer or manager within 2 business days if you want to appeal, and send Form 9423 postmarked within 3 business days after that conference. A timely CDP request also pauses the 10-year collection clock. Our collection due process hearing page has the step-by-step version.

Appeals versus Tax Court: which route to take?

You do not have to go through Appeals before going to court. If your audit ends with a notice of deficiency, you can file a Tax Court petition within 90 days (150 if the notice is addressed outside the US) without paying the tax first. The filing fee is $60 and can be waived.

Even if you skip Appeals, a docketed Tax Court case is normally sent to Appeals for settlement talks before trial, so many cases still settle there. Disputes of $50,000 or less per year can use the Tax Court's small case procedure, which is less formal but cannot be appealed. The court can impose a penalty of up to $25,000 for a case filed mainly to delay or based on a frivolous position.

District Court and the Court of Federal Claims are also open, but generally only after you pay the tax in full and file a refund claim. A refund suit must be filed within 2 years of the notice disallowing your claim.

How to request an IRS appeal: checklist

• Find the deadline on your letter and aim to send your request at least a week early.
• Confirm you gave the examiner every document you want considered.
• Work out the amount in dispute for each tax period to choose between a small case request and a formal protest.
• Write the request or protest, sign it, and attach copies of the letter and key exhibits.
• Send it to the address on the letter by a trackable method and keep a full copy.
• If a notice of deficiency arrives while you are still talking to the IRS, the 90-day Tax Court deadline still runs.

For background on how the dispute started, see the IRS audit guide and our page on IRS audit triggers.