Next, if it is determined the tax bill is wrong, contacting the IRS to discuss the issue will sometimes resolve misunderstandings or errors. If the
initial contact does not resolve the issue, a formal challenge
the assessment would be next.
Taxpayers have the right to request a review of the penalty before it is assessed. If the penalty has already been assessed, Marcelino Dodge, EA, CTRC can help you request a penalty abatement either before or after the penalty is paid.
If the abatement request is denied, you can appeal the decision. An appeal is sent in writing to a different IRS office. This written request for consideration by IRS Appeals is an impartial reconsideration because your request is being seen in an IRS office that did not initially review your case.
Should the appeal not resolve the issue, the next option is to take your case to Tax Court. Sometimes though after you file the petition to Tax Court, your case may be settled before even going to court. If you do go to court and the court finds in your favor and determines that the IRS’s position was largely unjustified, you may be eligible to recover some of your administrative and litigation costs.
Navigating any tax dispute can be complex, so it’s helpful and recommended to consult with a tax professional who can provide guidance tailored to your specific situation. Remember, you have rights and options to ensure fair treatment by the IRS.
