LET’S discuss 10 strategies as you meet face-to-face with the Appeals Officer:
1. Learn how the appeals process works. Learn how to gather, research, file, and prepare adequately. Get a coach to guide you through the survival process.
2. First address issues that are easiest to resolve and hope to establish a pattern that will carry over to the rest of the conference. Starting with the most complicated issue may get you stuck, unable to move on, and diminish your chances for a good resolution.
3. Present as many evidence in your favor.
4. Be credible. It is the most important single element in settling 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.
5. 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 or combative.
6. Be prepared to compromise. Remember that the purpose of the conference is to settle your case—not to bully for a win.
7. Try to control the tempo of the conference but be subtle. Suggest, not demand, the manner in which the conference is conducted. It is not in your best interest to be pushy.
8. Respect the Appeals Officer. The appeals officer is not the enemy. The officer is here to help settle your case.
9. 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.
10. 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 office at home, or recent tax court cases to support your side of the issues.
When things get tough, emphasize the hazards of litigation. You can lose all the issues if you proceed to court. So can the IRS. Good day! n
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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 Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].