What Are My Options If I Disagree with the Results of an IRS Audit?

A Comprehensive Guide by Mike Habib, EA

If you’ve recently undergone an IRS audit and disagree with the results, you’re not alone. Many taxpayers find themselves in this situation, feeling overwhelmed and unsure of what to do next. The good news is that you have options to challenge the IRS audit findings. As an Enrolled Agent (EA) and a tax expert based in Los Angeles, CA, I’ve helped countless individuals and businesses navigate the complex world of IRS audits, appeals, and tax problem resolution. In this article, I’ll walk you through your options if you disagree with the results of an IRS audit and explain how my firm can help you resolve your tax issues effectively.

Let’s dive into this topic in a conversational FAQ format to make it easy to understand and actionable.

What Is an IRS Audit, and Why Was I Audited?

An IRS audit is a review or examination of your financial information and tax returns to ensure that everything is reported accurately and complies with tax laws. The IRS may select your return for an audit for several reasons, including:

• Random selection and computer screening.
• Discrepancies or red flags in your tax return, such as unusually high deductions or unreported income.
• Mismatched information reported by third parties (e.g., W-2s, 1099s).
• Participation in certain industries or activities that the IRS monitors closely.

If you’ve been audited and disagree with the results, it’s important to know that you have rights and options to challenge the IRS’s findings.

What Are My Options if I Disagree With the Results of an IRS Audit?

If you disagree with the IRS audit findings, you don’t have to accept them. Here are your primary options:

1. Request a Meeting with the Auditor or Their Manager

If you believe the auditor made a mistake or overlooked important information, you can request a meeting with the auditor or their manager to discuss your concerns. This is often the first step in resolving disputes.

How can this help your audit matter?

• It allows you to clarify misunderstandings or provide additional documentation.
• It’s a less formal way to resolve disputes without escalating the issue.

How I can help: As your tax representative, I can communicate directly with the auditor or their manager on your behalf. I’ll ensure that your case is presented clearly and professionally, increasing the likelihood of a favorable outcome.

2. File an Appeal with the IRS Office of Appeals

If you’re unable to resolve the issue with the auditor or their manager, you can file an appeal with the IRS Office of Appeals. This independent office is designed to resolve tax disputes without litigation.

How does the appeals process work?

• You’ll need to file a written protest explaining why you disagree with the audit findings.
• The Appeals Officer will review your case and may schedule a conference to discuss it further.
• The goal is to reach a fair resolution without going to court.

How I can help: I specialize in preparing and filing appeals with the IRS. I’ll craft a compelling written protest, gather supporting evidence, and represent you during the appeals process to ensure your voice is heard.

3. Request Mediation or Arbitration

The IRS offers alternative dispute resolution (ADR) options, such as mediation or arbitration, to help resolve disputes more efficiently.

What’s the difference between mediation and arbitration?

• Mediation: A neutral third party helps facilitate a discussion between you and the IRS to reach a mutually agreeable solution.
• Arbitration: A neutral third party reviews the case and makes a binding decision.

How I can help: As an experienced tax professional, I can guide you through the ADR process, ensuring that your interests are protected and that you achieve the best possible outcome.

4. Petition the U.S. Tax Court

If you’re unable to resolve the dispute through the IRS Office of Appeals, you have the right to petition the U.S. Tax Court. This is a more formal process that involves presenting your case before a judge.

What should I know about Tax Court?

• You must file your petition within 90 days of receiving the IRS’s Notice of Deficiency.
• The Tax Court process can be time-consuming and complex, but it provides an opportunity to challenge the IRS’s findings in a neutral setting.

How I can help: I can work closely with you in pre-court negotiations to strengthen your case. My expertise in tax law and audit representation ensures that you’re well-prepared for this process.

5. Pay the Tax and File a Claim for Refund

If you believe the IRS’s findings are incorrect but want to avoid further disputes, you can pay the tax and then file a claim for a refund. If the IRS denies your claim, you can take the case to federal court.

How does this work?

• You’ll need to file Form 1040X (Amended U.S. Individual Income Tax Return) or Form 843 (Claim for Refund and Request for Abatement).
• If the IRS denies your claim, you can file a lawsuit in the U.S. District Court or the U.S. Court of Federal Claims.

How I can help: I can assist you in preparing and filing your claim for a refund, ensuring that all necessary documentation is included. If the IRS denies your claim, I’ll help you explore your legal options.

6. Seek Assistance From the Taxpayer Advocate Service (TAS)

The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that helps taxpayers resolve issues that haven’t been resolved through normal channels.

When should I contact TAS?

• If you’re facing financial hardship due to the IRS’s actions.
• If you believe the IRS isn’t following its own procedures.

How I can help: I can help you determine whether TAS is the right option for your situation and assist you in submitting your request for assistance.

How Can Mike Habib, EA, Help Me With My IRS Audit Dispute?

As a Los Angeles-based Enrolled Agent with over 20 years of experience, I specialize in helping taxpayers resolve IRS and state tax issues. Here’s how I can assist you:

1. Expert Representation

I’ll represent you before the IRS, handling all communications and negotiations on your behalf. This ensures that your case is presented professionally and that you don’t have to deal with the stress of interacting with the IRS directly.

2. Comprehensive Case Review

I’ll thoroughly review your audit findings, tax returns, and supporting documentation to identify errors or discrepancies. This allows me to build a strong case to challenge the IRS’s findings.

3. Tailored Solutions

Every tax situation is unique, which is why I provide personalized solutions based on your specific circumstances. Whether you need to file an appeal, request mediation, or petition the Tax Court, I’ll guide you every step of the way.

4. Nationwide Service

Although I’m based in Los Angeles, CA, I serve taxpayers nationwide, including Americans living overseas. No matter where you are, I can help you resolve your tax issues.

5. Proven Track Record

I’ve successfully helped countless clients resolve IRS audit disputes, reduce tax liabilities, and achieve peace of mind. My expertise, experience, and commitment to client satisfaction set me apart from other tax professionals.

FAQs About IRS Audit Disputes

Disagreeing with the results of an IRS audit can be stressful, but you don’t have to face it alone. As an experienced tax professional, I’m here to help you navigate the appeals process, protect your rights, and achieve the best possible outcome. Whether you need assistance with audit representation, appeals, or tax problem resolution, my firm is ready to provide the expert guidance you need.

If you’re facing an IRS audit dispute, don’t wait—contact me, Mike Habib, EA, today for a free consultation. Let’s work together to resolve your tax issues and give you the peace of mind you deserve.

For more information about IRS audits, tax problem resolution, and how I can help, contact me through my website or call my office today at 1-877-788-2937 [1-877-78-TAXES]. I’m here to help taxpayers in Los Angeles, across the U.S., and even Americans living overseas.