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How To Request an IRS Appeals Conference

The IRS proposed changes after your audit. Before accepting or going to Tax Court, you have one more option: the IRS Independent Office of Appeals.

Liam Williams

Liam Williams

— 8 min read

The IRS finished its audit and sent you a letter proposing changes to your tax return. (If the audit is still in progress, see How To Respond to an IRS Audit first.) The numbers are wrong—or at least you think they are. You could accept the changes and pay what the IRS says you owe. You could wait for a Notice of Deficiency and take the fight to Tax Court. But there's a step in between that most people overlook.

The IRS Independent Office of Appeals exists specifically for this situation. It's a free, independent review of your case by someone who had nothing to do with your audit. And in many cases, it leads to a negotiated resolution—without ever setting foot in a courtroom.

Here's how to request an Appeals conference and what to expect when you get one.

What Is the IRS Independent Office of Appeals?

The Independent Office of Appeals is a separate division within the IRS, established by IRC § 7803(e) as part of the Taxpayer First Act of 2019. It used to be called the "Office of Appeals"—the Taxpayer First Act renamed it and codified its independence from the rest of the IRS.

Appeals has one job: resolve tax disputes without litigation. Every Appeals officer is organizationally separate from the IRS Examination division that conducted your audit, and strict ex parte communication rules prohibit the examiner from privately lobbying the Appeals officer about the merits of your case.

The key concept in Appeals is "hazards of litigation." This means the Appeals officer evaluates your case based on what the IRS would likely achieve if it went to trial. If the IRS's position has weaknesses—incomplete evidence, questionable legal interpretations, credibility issues—the Appeals officer has authority to settle. This is not about who is "right." It's about what a court would probably decide.

There is no fee to request an Appeals conference. Under IRC § 7803(e), the Appeals process is generally available to all taxpayers.

When You Can Request Appeals

The standard trigger is a 30-day letter. After the IRS completes its examination and proposes changes you disagree with, the examiner sends a letter—most commonly Letter 525 for mail audits or Letter 915 for in-person audits—along with a report of the proposed changes. That letter gives you 30 days to respond.

You have three choices: agree and sign the form, submit a request for Appeals review, or do nothing. The third option is the dangerous one—if you don't respond within 30 days, the IRS may issue a Notice of Deficiency (the 90-day letter), and the administrative Appeals window closes. At that point your path is Tax Court or accept.

A CP2000 notice also produces a 30-day response window. While CP2000 is not a formal audit letter, responding with a disagreement can lead to Appeals review if the issue isn't resolved at the initial stage.

If you need more time to respond to a 30-day letter, contact the IRS office listed on the letter before the deadline expires. Extensions are not guaranteed, but the IRS commonly grants them.

Fast Track Settlement is a separate option available during the examination—before the 30-day letter is even issued. Both you and the examiner must agree to participate, using Form 14017. The goal is resolution within 60 days through an Appeals officer acting as mediator. This is covered by Rev. Proc. 2017-25 for individuals and small businesses.

How To Request an Appeals Conference

The process depends on how much money is at stake. The threshold is $25,000 per tax period—that's the total proposed change in tax and penalties for a single tax year.

Under $25,000: Form 12203

If the total proposed adjustment for each tax period is $25,000 or less, the process is straightforward. Complete Form 12203, Request for Appeals Review, or write a brief letter that includes:

  • Your name, address, and Social Security number (or EIN)
  • The tax form number and tax period(s) in question
  • Which specific items you disagree with
  • Why you disagree

That's it. No legal brief, no elaborate argument. The form itself is one page.

Mail the completed form to the IRS office that issued your 30-day letter—the address is on the letter. Do not send it directly to the Appeals office. The originating examination office reviews it first and attempts to resolve the issues before forwarding your case to Appeals.

Over $25,000: Formal Written Protest

If the proposed change exceeds $25,000 for any tax period, a formal written protest is required. If multiple tax years are involved and any single year exceeds $25,000, the formal protest is required for all years.

Per Publication 5 and Publication 556, your written protest must include:

  1. Your name, address, and daytime telephone number
  2. A statement that you want to appeal the IRS's findings to the Independent Office of Appeals
  3. A copy of the letter showing the proposed changes (the 30-day letter)
  4. The tax period(s) or year(s) involved
  5. A list of each item you disagree with and the reasons you disagree
  6. The facts supporting your position on each disputed issue
  7. The law or authority (if any) you are relying on
  8. A signed penalties of perjury statement

The perjury declaration must read:

"Under penalties of perjury, I declare to the best of my knowledge and belief, that the information contained in this protest and accompanying documents is true, correct and complete."

This does not need to be written by an attorney or formatted like a legal brief. Plain English works. The IRS is looking for substance—what you disagree with, why, and what facts support your position.

Practical Tips for Both Tracks

Be specific. "I disagree with everything" is not useful. Identify each item you dispute—the income adjustment, the disallowed deduction, the penalty—and explain why.

Attach copies, never originals. The IRS may lose documents. Keep your originals.

The 30-day deadline is for submitting the request—you don't need to have all your supporting documentation assembled by that date. Getting your protest or Form 12203 filed on time is what matters. You can supplement your case with additional evidence later.

Send by certified mail. This creates a record of when you submitted your request.

What Happens at the Conference

Once your protest reaches Appeals, an Appeals Officer (AO) is assigned to your case. This person had no prior involvement with your audit—and ex parte rules prohibit the examiner from influencing their review.

The conference itself is informal. It is not under oath. Most Appeals conferences happen by phone or video, though in-person conferences are also available upon request.

The Appeals Officer will introduce themselves, explain the process, and ask about your position on the disputed issues. For a detailed walkthrough of how to prepare, what the AO evaluates, and how to negotiate effectively, see What To Expect at Your IRS Appeals Conference.

There is no statutory deadline for when Appeals must schedule your conference. If you haven't heard anything within 120 days of submitting your protest, contact the IRS office that referred your case.

How to prepare: Bring the documentation that supports your position—receipts, bank statements, correspondence, records you may not have submitted during the audit. Your account transcript can help you verify what the IRS has on file. If you want representation, you can bring an attorney, CPA, enrolled agent, or other authorized representative with a Form 2848, Power of Attorney. A Low Income Taxpayer Clinic can provide free representation if you qualify.

How Appeals Decides: Hazards of Litigation

Appeals does not decide who is "right." It evaluates what the IRS would likely achieve at trial—the hazards of litigation. Per IRM 8.6.4, settlement evaluations reflect the "probable result in event of litigation."

This means the Appeals Officer weighs the strengths and weaknesses of the IRS's case. If the IRS's evidence is weak on a particular issue, Appeals may concede it entirely. If the IRS has a solid position but your counterargument has some merit, a partial settlement is the likely outcome.

The possible outcomes are:

  • Full concession by the IRS—rare, but it happens when the evidence clearly favors the taxpayer
  • Partial settlement—the most common result, where some adjustments are reduced or eliminated
  • Full sustain—Appeals agrees with the examiner on everything
  • No agreement—the case returns to Examination and a Notice of Deficiency is issued

If you reach a settlement, you sign Form 870-AD, which provides greater finality than the standard examination agreement. By signing, you generally waive the right to contest the agreed items in Tax Court for those years and agree not to file a refund claim. The IRS, in turn, pledges not to reopen the case—except for fraud, malfeasance, concealment, misrepresentation, or important mathematical errors.

Common Mistakes To Avoid

Writing a vague protest. "I disagree with the audit" without identifying specific items gives Appeals nothing to work with. List each disputed item and explain your reasoning.

Missing the 30-day deadline. Once the IRS issues a Notice of Deficiency, the administrative Appeals window for that examination cycle closes. Respond to the 30-day letter on time, even if your documentation is incomplete.

Sending originals instead of copies. Documents can get lost in the IRS mail system. Always keep your originals and send photocopies.

Signing a settlement agreement without understanding the consequences. Form 870-AD generally closes the door to Tax Court for the agreed tax years. Read it carefully before signing.

If Appeals Does Not Resolve Your Case

If Appeals upholds the examination findings—in full or in part—the case returns to the IRS, which issues a Notice of Deficiency (the 90-day letter). From the date on that notice, you have 90 days to file a petition with the U.S. Tax Court. That deadline cannot be extended.

Filing a petition does not mean you're going to trial. Most (76%) of Tax Court cases settle before trial—often through a second round of Appeals negotiations in what's called a "docketed case" context, where the hazards of litigation become more concrete for both sides. For a guide to evaluating settlement offers and understanding settlement documents, see How To Settle Your Tax Court Case. For a full walkthrough of what happens after Appeals, see What Happens After IRS Appeals Denies Your Case.

If you're deciding between small case and regular case procedures, see Small Case or Regular Case: Which Should You Choose?.

Other types of IRS disputes have their own Appeals paths. Penalties can be challenged through a separate abatement and Appeals process—see How To Request IRS Penalty Abatement. Collection disputes involving liens and levies go through Collection Due Process hearings, which are also handled by the Independent Office of Appeals.

Resources

This article is for informational purposes only and does not constitute legal or tax advice. For advice specific to your situation, consult a qualified tax professional or attorney.

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