Tax Appeals

As a broad overview, the Tax Appeals process applies in situations when an individual or business disagrees with the findings of the IRS concerning a tax case or issue.  Unlike court proceedings which are extremely formal from the outset, the tax appeals process can be far less adversarial and time consuming, not to mention far less expensive.  Essentially, a tax appeal can being by filing the proper appeal paperwork with a local IRS office.  Once filed, the IRS branch will contact the individual or business and informal discussions can be had concerning the nature and justification for the appeal.  There are no specific guidelines that must be met in order to appeal an IRS decision.  Simply asking for an appeal is enough to be granted the opportunity to state a case and provide evidence that shows why the original IRS tax determination was erroneous.  Frequently, the tax appeals process resolves disputes and finds common ground without ever going to court.

Types of Appeals

There an many types of appeals for tax purposes, such as property tax appeals and tax assessment appeals, which may help property owners lower their tax bills.

Property Tax Appeal: As with any unknown, there is always the possibility that a property assessment will reveal that a home is undervalued; thus, the appeal could have the unintended effect of actually increasing the tax liability of the property owner. A property tax appeal may be prudent when a property owner is fairly certain that if appraised, their property would be assessed for less than the current value.  For example, if every home on the block is substantially similar, and every home is valued at 20% less than the value of a particular home on the street, there is a good chance that that home is overvalued and is being assessed a tax that is too high.  To decrease the tax liability, the owner can appeal to the local tax authority and make arrangement for the an assessor to come out and re-assess the value of the property.  If the home is assessed for less than it was before, the tax liability connected to the property will inevitably decrease as well.

However, keep in mind that if a home is used as collateral for a purchase, the decreased assessment may hurt the borrower’s ability to borrow against the value of the house if the value is significantly decreased.  There are tradeoffs to having an over-valued and undervalued house – and individuals should make sure they understand all possible outcomes before engaging in any kind of assessment appeal.

Tax Appeal Forms

Tax appeal forms vary from state to state and can also vary in content.  Many states have a tax appeal board where the taxpayer can go to file the appropriate form to file an appeal.  While form names will also vary based on jurisdiction, common tax appeal forms include: Residential Appeal Forms, Condo Appeal Forms and Industrial Appeals Forms,

Tax Court

The United States Tax Court is controlled by the rules implemented by the IRS and conducts trials on the Federal level.  The Tax Court operates within individual states as well as Washington, D.C. and has jurisdiction over all taxpayers in the US.  Once the IRS has made determinations on the tax liabilities for an individual or business, a taxpayer initiate proceedings in the US Tax Court to dispute the IRS determinations.

Tax Appeal Lawyer Help

As with most tax issues, the rules and regulations regarding tax appeals can be complex and difficult to navigate.  Obtaining help from a Tax Appeal Lawyer is often essential in complicated situations and can be very beneficial for the taxpayer involved.  It is a good idea to seek the help of an experienced attorney whenever significant issues of tax liability are involved.