When can I appeal an IRS audit result?

You can appeal an IRS audit result after receiving a 30-day letter (also called an Examination Report or Letter 525) that proposes changes to your tax return. The 30-day letter gives you 30 days to respond. You have two options: (1) agree with the proposed changes and pay, or (2) protest the findings by requesting an Appeals conference. For disputes of $25,000 or less, you can make a Small Case Request — an informal appeal that does not require a formal written protest. For larger amounts, you must submit a formal written protest that states the facts, law, and arguments supporting your position.

What happens at an IRS Appeals conference?

An Appeals conference is an informal meeting (in person or by phone) with an IRS Appeals Officer who is independent from the audit team. The Appeals Officer reviews your case from a fresh perspective and considers: (1) the hazards of litigation — the probability the IRS would lose if the case went to Tax Court; (2) the factual evidence you present; (3) legal arguments and authorities supporting your position; and (4) the potential for settlement before trial. Appeals Officers have broad settlement authority and can negotiate a compromise based on the strength of each party's case.

What is the 90-day letter and why does it matter?

The 90-day letter — formally called a Statutory Notice of Deficiency — is the IRS's final determination before assessment. If you don't settle at Appeals or choose to skip Appeals, the IRS issues this letter. You then have exactly 90 days (150 days if outside the U.S.) to file a petition with the U.S. Tax Court. The 90-day deadline is JURISDICTIONAL — miss it by even one day and you lose your right to Tax Court review. You would then have to pay the tax, file a claim for refund, and sue in District Court or the Court of Federal Claims instead.

IRS Appeals

IRS Audit Appeals: Protest Your Audit Results

The IRS audit is complete, and the Revenue Agent has proposed a tax deficiency. You disagree with the findings. The next step is critical: requesting an Appeals conference before an independent IRS Appeals Officer who has the authority to settle your case based on the hazards of litigation. Appeals Officers weigh the evidence, consider the legal arguments, and negotiate a fair resolution — without the cost and risk of going to Tax Court.

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The Audit Appeals Process — Step by Step

Receive the 30-Day Letter

After the audit closes, the IRS sends a 30-day letter (Examination Report or Letter 525) proposing changes to your return. You have 30 days to respond. Do not ignore this letter — it is your gateway to Appeals.

Prepare Your Protest

For amounts over $25,000: submit a formal written protest stating the facts, law, and arguments. For $25,000 or less: make a Small Case Request — simpler, no formal protest required, just state what you disagree with and why.

Request Fast Track Mediation (Optional)

Fast Track Mediation is available for certain audit issues. A neutral IRS mediator helps you and the audit team reach agreement quickly without going to a full Appeals conference. The mediator has no authority to impose a decision.

Attend the Appeals Conference

Meet with an independent Appeals Officer. Present your evidence, legal authorities, and arguments. The Appeals Officer considers hazards of litigation, evaluates the IRS's probability of prevailing in court, and can settle on that basis.

Resolution or 90-Day Letter

If you reach a settlement at Appeals, the case closes. If not, the IRS issues a Statutory Notice of Deficiency (90-day letter). You then have 90 days to petition the U.S. Tax Court. Do not miss this deadline — it is jurisdictional.

What Appeals Officers Consider

Hazards of Litigation

The Appeals Officer evaluates the probability the IRS would lose if your case went to Tax Court. This includes assessing the credibility of witnesses, the strength of documentary evidence, and how courts have ruled on similar issues.

Factual Evidence

Appeals Officers review all factual evidence: receipts, invoices, bank records, contracts, appraisals, and witness statements. New evidence not previously provided to the auditor can be submitted and considered at Appeals.

Legal Arguments

Your legal position — including statutes, regulations, case law, and IRS rulings — is fully considered. Appeals Officers have extensive tax law training and can evaluate nuanced legal arguments that the audit team may have overlooked.

Settlement Potential

Appeals Officers have broad authority to settle cases. If both sides face significant litigation risk, the Officer can negotiate a compromise — for example, allowing a percentage of the disputed deduction — rather than an all-or-nothing result.

Audit Didn't Go Your Way? Appeals Is a Fresh Look

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