Paying taxes is a responsibility you must take seriously, even though it may not be the most pleasant thing to think about. There will be times when you might encounter some issues, like when the Internal Revenue Service (IRS) commits a mistake despite filing your taxes properly. These errors can range from misplaced documents and filing errors. But don’t worry, you have the right to challenge IRS’s decisions through an appeal.
Understandably, it can be stressful to deal with tax-related mistakes, especially major ones. However, the IRS is aware that this can happen, which is why they have set up a system where taxpayers can address the error via the IRS Office of Appeals.
So, what should you do if this issue arises? What rights do expat taxpayers have? And can you challenge the IRS’s position?
The IRS Office of Appeals acts independently from the IRS Examination and Collection. Their goal is to resolve tax issues between you and the government on a fair basis, without litigation, and in such a manner that enhances your voluntary compliance.
The appeal process is less formal and less costly, so this is a route that is worth considering than going to court.
However, before filing an appeal, you should understand the Taxpayer Bill of Rights so you know what you are entitled to. Among the 10 rights in the bill, numbers 4 and 5 are crucial.
The 4th right is “The Right to Challenge the IRS’s Position and Be Heard.” It states that taxpayers have the right to object and provide supporting documentation to respond to formal IRS actions. You can expect the IRS to consider the objections and documents fairly and receive a response should they disagree with your appeal.
The 5th right is “The Right to Appeal an IRS Decision in an Independent Forum.” As a taxpayer, you are entitled to a fair and impartial appeal that involves penalties. You also have the right to receive a written response regarding the Office of Appeals’ decision. Lastly, you can take the case to tax court if you wish.
After familiarizing yourself with the Taxpayer Bill of Rights, the next step is writing your appeal. You may be unsure of where to start, so here is a guide on how to write an effective letter of appeal to the IRS.
Tax-related issues are never fun. They can be challenging to deal with, but you must take action to correct wrongful findings on your tax return. Fortunately, the IRS has an appeal process in place.
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