Navigating the complexities of IRS disputes can be daunting, but understanding your rights and options can make the process less intimidating. Whether you’re facing an IRS audit, disagree with a tax decision, or need help resolving disputes, the IRS Appeals process and Post-Appeals Mediation (PAM) offer opportunities to settle issues without going to court. In this comprehensive guide, we’ll break down everything you need to know about IRS Appeals, PAM, and how the tax representation firm of Mike Habib, EA can assist you.
The IRS Appeals process is an administrative procedure designed to resolve tax disputes without litigation. It is managed by the Independent Office of Appeals, which operates separately from other IRS departments. The goal is to provide taxpayers with a fair and impartial review of their case, ensuring disputes are resolved efficiently and equitably.
– Independence: The Appeals Office is separate from the IRS office that made the initial decision, ensuring impartiality. This independence is mandated under IRC §7803(e), which establishes the Independent Office of Appeals
– Informality: Conferences are conducted in a less formal setting, often via correspondence, phone, or in-person meetings. This is outlined in IRM 8.6.1, which governs the procedures for Appeals conferences
– Scope: You can appeal various issues, including penalties, liens, levies, trust fund recovery penalties, and denial of interest abatement
You may qualify for the IRS Appeals process if:
1. You received a letter from the IRS explaining your right to appeal.
2. You disagree with the IRS’s decision.
3. You are not signing the agreement form sent to you by the IRS.
The right to appeal is a fundamental taxpayer right under the Taxpayer Bill of Rights (TBOR), specifically the right to challenge the IRS’s position and be heard (IRM 1.2.10.37)
1. Receive Notification: The IRS will send you a report or letter explaining the proposed adjustments or actions. This is often referred to as a 30-day letter or a 90-day letter, depending on the type of case.
2. File a Protest: Submit a formal written protest or a Small Case Request, depending on the amount in dispute. For disputes under $25,000, a Small Case Request is sufficient (IRM 8.6.1.4)
3. Appeals Conference: Attend an informal conference with an Appeals Officer to discuss your case. The Appeals Officer will review the facts and applicable laws to determine if the IRS’s decision was correct.
4. Resolution or Further Action: If an agreement is reached, the case is closed. If not, you may take your case to court. The procedures for closing agreements are detailed in IRM 8.6.4
Post-Appeals Mediation (PAM) is an alternative dispute resolution (ADR) program offered by the IRS. It allows taxpayers and the IRS to resolve disputes that remain unresolved after the traditional Appeals process. A trained mediator from the Independent Office of Appeals facilitates discussions to help both parties reach an agreement.
Key Features of PAM
– Voluntary: Both the taxpayer and the IRS must agree to participate. This is outlined in IRM 8.26.5, which governs the PAM process
– Neutral Mediation: A mediator helps facilitate discussions but does not impose a decision.
– Control: Taxpayers retain full control over decisions during the mediation process.
1. Faster Resolution: PAM aims to resolve disputes within 60-90 days, significantly faster than litigation. This timeline is supported by IRM 8.26.5.3
2. Cost-Effective: Avoiding court reduces legal fees and other associated costs.
3. Flexibility: The process is tailored to the specific issues in dispute.
4. Reduced Risk: Mediation minimizes the uncertainty of court outcomes.
PAM is available for both legal and factual disputes. However, certain cases are excluded, such as:
– Issues already docketed in court or designated for litigation.
– Cases previously mediated through other ADR programs like Fast Track Settlement (FTS).
– Offer in Compromise (OIC) cases handled by IRS campus sites.
These exclusions are detailed in IRM 8.26.5.2
The tax representation firm of Mike Habib, EA specializes in helping taxpayers navigate the IRS Appeals process and Post-Appeals Mediation. Here’s how they can assist:
1. Expert Representation
– Mike Habib, EA is a federally authorized practitioner with extensive experience in representing clients before the IRS.
– They can handle all communications with the IRS, ensuring your case is presented effectively and professionally.
2. Preparation of Appeals Requests
– The firm will draft and file a formal written protest or Small Case Request on your behalf, ensuring all necessary documentation is included.
3. Strategic Case Analysis
– They will review your case thoroughly, identifying strengths and weaknesses to develop a compelling argument for your position.
4. Mediation Support
– If your case proceeds to PAM, Mike Habib, EA will guide you through the process, ensuring you are well-prepared for mediation sessions.
5. Confidentiality and Privilege
– Communications with Mike Habib, EA are protected under confidentiality privileges, similar to those with an attorney.5
Initial Consultation
– Mike Habib, EA will review your IRS correspondence and discuss your options for appeal.
Case Preparation
– The firm will gather all necessary documentation, including financial records and legal arguments, to support your case.
Appeals Conference
– They will represent you during the informal conference, presenting your case to the Appeals Officer and negotiating on your behalf.
Post-Appeals Mediation (If Necessary)
– If the Appeals process does not resolve your dispute, Mike Habib, EA will assist you in applying for PAM and preparing for mediation sessions.
Resolution
Whether through Appeals or PAM, the firm will work tirelessly to achieve the best possible outcome for your case.
1. Expertise: With years of experience in tax representation, Mike Habib, EA has a deep understanding of IRS procedures and regulations.
2. Personalized Service: The firm tailors its approach to each client’s unique situation, ensuring the best possible representation.
3. Proven Track Record: Mike Habib, EA has successfully resolved numerous tax disputes, saving clients time, money, and stress.
4. Trustworthiness: As an enrolled agent, Mike Habib, EA is authorized to represent taxpayers before the IRS and is committed to upholding the highest ethical standards.
This is false. The Appeals process is designed to provide an independent review of your case. Many disputes are resolved at this stage without the need for litigation.
PAM is not binding. It is a voluntary process where both parties retain control over the outcome. If no agreement is reached, you can still pursue litigation.
While audits are a common reason for appeals, you can also appeal penalties, liens, levies, and other IRS actions.
A small business owner faced a $150,000 penalty for late payroll tax deposits. Mike Habib, EA reviewed the case and discovered that the IRS had miscalculated the penalty. Through the Appeals process, the penalty was reduced by 80%, saving the client $120,000.
An individual taxpayer disagreed with the IRS’s assessment of additional income tax. After an unsuccessful Appeals conference, Mike Habib, EA guided the client through PAM. The mediator helped both parties reach a settlement, reducing the tax liability by 50%.
Yes, you can represent yourself. However, having a professional like Mike Habib, EA can significantly improve your chances of a favorable outcome by ensuring your case is presented effectively.
The duration varies depending on the complexity of the case. Simple cases may be resolved in a few months, while more complex disputes can take longer.
No, PAM is a voluntary process, and neither party is obligated to accept the mediator’s recommendations.
If PAM does not resolve your dispute, you may still pursue litigation in Tax Court or another federal court.
The cost depends on the complexity of your case. Contact Mike Habib, EA for a personalized consultation and fee estimate.
The IRS Appeals process and Post-Appeals Mediation offer valuable opportunities to resolve tax disputes without the need for costly and time-consuming litigation. With the expertise of Mike Habib, EA, you can navigate these processes with confidence, knowing you have a skilled advocate on your side. Whether you’re facing an audit, penalties, or other tax disputes, Mike Habib, EA is here to help you achieve the best possible outcome.
For more information or to schedule a consultation, contact Mike Habib, EA today!
Phone: 877-788-2937
Online: https://www.myirstaxrelief.com/contact-us/