YOU have just lost an audit and have decided to bring your case before the appeals office of the IRS. You have learned the basics of the appeals process and how to prepare for the conference from previous articles. Let me now give you 10 strategies as you face the Appeals Officer:
1. Respect the Appeals Officer. The appeals officer is not the enemy. The officer is here to help settle your case. The new IRS gives him/her even more new authority to resolve your case.
2. Be credible. It is the most important single factor in helping settle your case. Be honest and forthright with him. Even the best arguments, citations, and documentation won’t be effective if you lose credibility during the conference.
3. Be reasonable. Heated arguments lead you nowhere. Threats or ultimatums backfire and merely lead you to more trouble. This is not the time to be bullheaded. This is not the forum to be combative.
4. Be prepared to compromise. Remember that the purpose of the conference is to settle your case – not to bully for a win.
5. If controlling the tempo of the conference is one of your strategies, be subtle. Suggest, not demand, the manner in which the conference is conducted. It is not in your best interest to be pushy.
6. First address issues that are easiest to resolve and hope to establish a pattern that will carry over to the rest of the conference. Again, your objective is a quick resolution. Starting with the most complicated issue may get you stuck, unable to move on, and diminish your chances for a good resolution.
7. Present all your evidence that are in your favor. Federal rules of evidence do not apply to appeals conferences.
8. Analyze the strengths and weaknesses of the government’s position. This will guide you when to attack issues, when to step back, when to extend an olive branch. Hopefully, the end game will be peaceful.
9. Help the Appeals Officer build your case so he can help back you up in his written report to his superiors. In my experience, Appeals Officers feel for taxpayers but sometimes do not have tools to help deserving taxpayers. Submit persuasive documents such as cancelled checks and thank you letters to support donations, floor plans to support your office at home, or recent tax court cases to support your side of the issues.
10. Learn the basics of the appeals process. Learn how to gather, research, file, and prepare adequately. Get a coach to guide you through the survival process.
When things get tough, emphasize the hazards of litigation. You can lose all the issues if you proceed to court. So can the Appeals Officer.
Good day!
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Sy Al-os Accountancy Corporation provides accounting and tax services to individuals, corporations, LLCs and business entities. The Firm has a niche in defending taxpayers audited by the IRS and other governmental agencies. The firm celebrates its 38th anniversary in 2015.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in 704 Mira Monte Place, Pasadena, CA 91101. He has 50 years of experience in accounting, consulting, and tax work.
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The Firm proudly welcomes Arlene Al-os in 2015. She obtained her bachelors of Science in Accountancy from Mindanao State University and MBA from Ateneo de Manila University. She teaches intermediate accounting at UCLA and was a professor of Economics at Asia Pacific College. She has over 15 years of experience including member firms of KPMG and BDO Seidman accounting firms.
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Our readers may call (626) 744-0200 or email tax questions to [email protected]. Please visit our website for about 300 tax tips at www.victorsycpa.com.
