YOU are still upset from losing an IRS audit. You can either pay or fight. If you choose peace and quiet—pay. If you choose to fight—go to appeals. Let me give you 10 tips on how to prepare for the appeals conference:
1. Be organized in gathering and grouping records. An organized approach to gathering, filing and presenting documents makes it easier on you and the Appeals Officer. I have so many cases where the Appeals Officers are so impressed by my documentation that the whole complexion of the conference changes from a chore to a relaxed atmosphere-an ideal atmosphere to negotiate.
2. Research the issues at hand. Read the most current cases to counter older cases that the agent may have cited against your side of an issue.
3. Cite code sections, revenue rulings, revenue procedures, and court cases to bolster your position. These citations not only prove technical aspects but also impress the Appeals Officer that you know what you are doing (assuming of course that you use the right citations).
4. Prepare a persuasive written protest. Draft the protest to maximize issues that are favorable to you and minimize issues that are unfavorable to you.
5. Request access to your case files. Take a look at any dossier they have on you. If the Appeals Officer resists, file a request through the Freedom of Information Act (FOIA).
6. Your files contain a statement of facts from the agent who previously examined you. Counter the agent’s statements. Provide a different perspective to erode the agent’s credibility to help sway the Appeals Officer in your favor.
7. Ask around regarding the Appeals Officer in charge of your case. Ask CPAs, enrolled agents, or tax lawyers about how the particular officer approaches and resolves a case.
8. If you decide to represent yourself, discuss your strategy and approach with a coach (CPA or lawyer). Present your documents for a trial run to see how persuasive you can be.
9 Instruct your CPA or tax preparer to be available in case you need help. And you probably will. Bring your cell phone and ask your coach to be available for consultation during the conference.
10. If discussions get technical and things don’t look too good, respectfully admit to the officer that you are, er, kind of overmatched and that you need a representative—a CPA, enrolled agent, or tax lawyer take over your case. You have done your best. Let the pros take over.
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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].
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