J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

48.9 Disputing the Audit Changes

If you disagree with the agent and the examination takes place in an IRS office, you may ask for an immediate meeting with a supervisor to argue your side of the dispute. If an agreement is not reached at this meeting or the audit is at your office or home, the agent prepares a report of the proposed adjustments. You will receive a 30-day letter in which you are given the opportunity to request a conference. You may decide not to ask for a conference and await a formal notice of deficiency (90-day letter).

Appeals conference.

If your examination was conducted as an office audit or by correspondence, or the disputed amount does not exceed $25,000, you do not have to prepare a written protest for a conference with the IRS Appeals Office. The written protest is a detailed presentation of your reasons for disagreeing with the agent’s report. Even where a formal written protest is not required, you must provide a brief written statement indicating your reasons for disagreeing with the agent when you request an appeals conference; you can use Form 12203 (Request for Appeals Review).

At the conference you may appear for yourself or be represented by an attorney or other agent, and you may bring witnesses. The conference is held in an informal manner and you are given ample opportunity to present your case.

If you cannot reach a settlement, you will receive a Notice of Deficiency, commonly called a 90-day letter. In it, you are notified that at the end ...