Appeals Conference

After the Service has answered the petition and you’ve replied if necessary, the next step is often an appeals conference with the IRS Office of Appeals. Appeals is in theory a separate and independent branch of the Service, but for all practical purposes, if you are arguing anything more substantial than allowable deductions, Appeals is not different than any other sub-division of the IRS. They are vague, ambiguous, evasive, and deeply biased in favor of taking your money. In my cases these meetings have not been productive. Despite telling us that they will discuss the facts and the law that relates to them, they are extremely reluctant to discuss the law at all. I’ve found them to be evasive at best. At worst, they make up straw man arguments, send you off-point case law, or ignore your questions entirely. That being said, I would encourage everyone to make a good faith effort to avoid litigation by settling the case with appeals. Appeals officers are more highly trained than the typical revenue agent and have the authority to recommend a settlement or a trial. You have three options for your appeals meeting: face to face, on the phone, or by correspondence. I’ve always preferred correspondence. As we are dealing with professionals who do this kind of negotiation every day, we are at a distinct negotiating disadvantage if ...

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