IRS appeal request letter sample: asking for an Appeals conference

Is this the right letter?

Publication 5 explains the two ways to ask Appeals to review proposed audit changes. A small case request is available when total tax and penalties for each tax period in the letter are $25,000 or less. A formal written protest is required if any period exceeds that, and for employee plan, exempt organization, partnership and S corporation cases regardless of amount.

This sample is a small case request, written as a short letter. If your case needs a formal protest, you will also have to include the law or authority you rely on and a statement under penalties of perjury; the same structure applies but with more detail.

To decide, look in your letter for the tax and penalties shown for each period and compare them with the small case amount above. If any one period is over, the formal protest rules apply to all periods. If you cannot tell from the report, or the case involves a partnership or S corporation, read Publication 5 before drafting, because choosing the wrong format can cost time.

Dates and addresses come from your letter

The deadline is the date in the letter you received, and the IRS says the response time is generally 30 days from the letter date. Send the request to the address in the letter, not to Appeals directly. If the letter includes a form for a small case request, you can use it instead of or alongside this letter.

The example involves a married couple whose examiner disallowed a charitable deduction and a business mileage deduction; they accept the first and want Appeals to look at the second.

Put the deadline on your calendar as soon as the letter arrives, and plan to mail well before it. A short request that arrives on time is better than a complete one that arrives late, and your letter can offer to provide further records at a conference.

Writing the disagreement

Name each adjustment as the examination report names it. State whether you disagree with the whole amount or part of it, and give the reason in a sentence or two. Do not argue everything; a focused list is clearer than a general complaint.

Avoid tone that treats the examiner as an opponent. Appeals is a separate part of the IRS, and the reviewer will read your reasons fresh. Your documents carry the weight.

Keep a copy of the examination report beside your draft and check that each adjustment you list matches the report's wording and page. If you agree with some changes, say so in the letter; the IRS asks you to list the disputed issues, so a clear split between what you accept and what you contest keeps the request focused. For a joint return, both spouses generally sign.

For each disputed item, answer three questions in order: what did the examiner change, why do you think it is wrong, and what proves it. Use the same order for every item so the reviewer sees a pattern. If your reason depends on a record that is incomplete, say what the record shows and what it does not, instead of leaving the gap for the reviewer to find.

Supporting papers

The IRS says to include facts supporting your position. Typical enclosures:

Index your enclosures at the bottom of the letter and reference them by number in the text. If the same document supports two items, enclose it once and cite it twice. Make copies of everything and keep the originals; you may need them at a conference, where you can explain the records in person.

• A copy of the letter proposing the changes and the examination report
• Contemporaneous logs, such as a mileage log, for the disputed item
• Statements, invoices or receipts the examiner did not have
• Any written exchange with the examiner about the item

After you send it

Appeals will contact you to discuss the case. If you do not reach an agreement, the IRS may issue a notice of deficiency, which carries a 90-day period to petition the Tax Court, or 150 days if addressed outside the United States; check your notice. IRS Audit Defense Pro is software that helps you organize your facts and draft a response letter you review and send yourself. It is not a law firm, CPA or enrolled agent, and it gives no legal or tax advice.

The sample letter

Adapt the text to your examination report.

Sample letter

This is a general template with placeholders. Replace everything in square brackets with your own details, and check it against the instructions on your notice.

[YOUR FULL NAME(S)]
[YOUR STREET ADDRESS]
[CITY, STATE ZIP]
[DAYTIME PHONE]

[DATE]

Internal Revenue Service
[ADDRESS SHOWN IN YOUR LETTER]
Attention: [NAME OR OFFICE SHOWN IN LETTER]

RE: Request for Appeals review (small case request)
Letter [LETTER NUMBER] dated [LETTER DATE]
Taxpayer name(s) and identification number(s) (last four digits): [LAST FOUR]
Tax year(s): [TAX YEAR(S)]

To the Reviewer:

I disagree with some of the changes proposed in the letter and examination report referenced above, and I request that my case be considered by the IRS Independent Office of Appeals. I believe my total tax and penalties for each period listed in the letter are within the amount that qualifies for a small case request. [OR: I AM ENCLOSING THE FORM INCLUDED WITH THE LETTER.]

Changes I agree with. I agree with the adjustment for [DESCRIBE ITEM], as shown on page [PAGE NUMBER] of the report.

Changes I disagree with.
1. [DESCRIBE ADJUSTMENT AS NAMED IN THE REPORT]. I disagree with [ALL OR PART] of this adjustment because [REASON IN ONE OR TWO SENTENCES]. The enclosed [DESCRIBE DOCUMENT] shows [WHAT IT SHOWS].
2. [DESCRIBE SECOND ADJUSTMENT, IF ANY]. I disagree because [REASON]. See enclosure [NUMBER].

I would like to explain these items and provide any further records at a conference. Please contact me at the number above to arrange it.

Sincerely,

[SIGNATURE]
[YOUR FULL NAME]
[SIGNATURE OF SPOUSE, IF A JOINT RETURN]
[DATE SIGNED]

Enclosures:
1. Copy of letter [LETTER NUMBER] and examination report
2. [DESCRIBE ITEM: MILEAGE LOG OR RECORDS]
3. [DESCRIBE ITEM: STATEMENTS OR RECEIPTS]
4. [DESCRIBE ITEM: CORRESPONDENCE WITH EXAMINER]

Frequently asked questions

Sources

• IRS Publication 5
• IRS: Preparing a request for Appeals
• IRS: Appeals, an independent organization

Related guides

• How to appeal the results of an IRS auditIf you disagree with audit findings, respond to the letter that proposes the changes by the date it gives, which is generally 30 days.
• Letter 525 and Letter 950: what a 30-day letter asks of youLetter 525 and Letter 950 are 30-day letters sent after an audit.
• IRS office audit: what to expect at the interviewAn office audit is an in-person interview at an IRS office about specific items on your return.
• Vehicle mileage audit: building records for a car deductionIn a vehicle expense exam the IRS expects written records of business use, such as a mileage log, diary or notebook.
• Charitable contribution audit: acknowledgments and proof of giftsIn a charitable contribution exam the IRS asks you to prove each gift.
• CP3219A: your notice of deficiency and the deadline printed on itA CP3219A is a Statutory Notice of Deficiency.