IF you lose an IRS audit, you have two choices: pay or appeal. Your decision depends on how you feel about the fairness of the auditor, amount of assessment, cost of defense, and extending or ending your misery with the IRS.
• What is the role of Appeals?
• Are Appeals Officers independent?
• Do they side with auditor?
The role of Appeals is to make an independent review of a tax dispute and to consider positions taken by both the taxpayer and the IRS. It strives to resolve tax disputes in a fair way and to remain impartial to both parties. From my personal experience of dealing with Appeals for decades, it really is independent. Trust me.
They must be independent. It is most essential to their very existence. It is critical to accomplish their mission. To resolve disputes effectively, Appeals must show itself to be objective, impartial, and neutral – both in fact and appearance. If taxpayers perceive they will not get a fair hearing in Appeals, they’ll litigate their case in Tax Court which would increase the cost and burden to both the taxpayer and the Federal Government.
Appeals does not take sides in a dispute – not for you, not for the IRS. It offers an objective point of view of your case. It resolves disagreements on a basis that is fair and impartial to both the Government and the taxpayer.
While most IRS auditors tend to look at matters in “black or white,” Appeals Officers view issues in “shades of gray.” While auditors may be locked in to certain position, appeals officers are more open-minder. They are seasoned veterans. They understand life. Try Appeals if you lose your next audit.
* * *
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.
* * *
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].
