An IRS audit, an administrative appeal, and a Tax Court case involve different procedures. Understanding which stage you are in helps identify the records, response, and deadlines that matter now.
Margolies Law Office helps individuals and businesses review IRS examination requests and disputed tax matters. From the firm’s Dallas office, we assess the issue, explain available options, and develop a response suited to the current stage.
Key Takeaways
- An IRS audit, an administrative appeal, and a Tax Court case are different procedures, each with its own records, response, and deadline requirements.
- Certain examination letters provide a 30-day period to request consideration by the IRS Independent Office of Appeals, though the actual letter controls the requested action.
- A Notice of Deficiency generally allows 90 days (or 150 days for a notice addressed outside the United States) to petition the Tax Court without first paying the disputed amount.
- Levy CDP notices, lien CDP notices, and a CDP Notice of Determination each carry their own separate deadlines that should not be assumed to match one another.
- Attorneys, CPAs, and enrolled agents can provide IRS representation, while Tax Court practice requires separate admission.
- Taxpayers do not need to wait until the Appeals stage to seek advice; a review during the examination can help organize the facts early.
What should you do when an audit letter arrives?
Identify the tax year, the issues under review, the records requested, and the response date. Preserve your documents and seek advice promptly if the request, potential exposure, or deadline is unclear.
The goal is an accurate, appropriate response to the request, not a collection of every document you have. Representation can help organize the information, evaluate the issues, and communicate with the examiner; it does not guarantee that the IRS will narrow or close the examination.
Read about audit representation.
The main paths through a tax dispute
Stage : Examination
What it addresses : Whether the return and supporting information are correct
What needs attention : Requested records, factual issues, and response dates
Stage : Administrative appeal
What it addresses : A disagreement eligible for consideration by the IRS Independent Office of Appeals
What needs attention : The notice, protest requirements, and deadline
Stage : Tax Court deficiency case
What it addresses : A qualifying proposed deficiency challenged before payment
What needs attention : The Notice of Deficiency and timely petition
Stage : Collection appeal
What it addresses : A levy, lien filing, or other eligible collection dispute
What needs attention : The particular notice and applicable appeal procedure
Stage : Refund-claim or litigation route
What it addresses : A claim that paid tax should be refunded
What needs attention : Filing prerequisites, deadlines, and court requirements
Stage | What it addresses | What needs attention |
|---|---|---|
Examination | Whether the return and supporting information are correct | Requested records, factual issues, and response dates |
Administrative appeal | A disagreement eligible for consideration by the IRS Independent Office of Appeals | The notice, protest requirements, and deadline |
Tax Court deficiency case | A qualifying proposed deficiency challenged before payment | The Notice of Deficiency and timely petition |
Collection appeal | A levy, lien filing, or other eligible collection dispute | The particular notice and applicable appeal procedure |
Refund-claim or litigation route | A claim that paid tax should be refunded | Filing prerequisites, deadlines, and court requirements |
These paths are not interchangeable or automatically available in every matter. The IRS explains which appeal opportunities accompany particular letters, and the Tax Court explains the notices and procedures used to begin a case.
Responding to records requests and summonses
Reviewing an examination request includes determining what records are relevant and how they support the return. Incomplete records may require additional work to reconstruct transactions or explain an item accurately.
If the IRS issues a summons, the legal requirements, scope, and any available objections need separate attention. Do not ignore it or assume that ordinary correspondence resolves it; learn more about IRS summons representation.
If you disagree with proposed adjustments
A disagreement may turn on missing records, an incorrect factual assumption, or how the law applies. A clear response should identify the disputed items and support the taxpayer’s position rather than simply state that the result is unfair.
Certain examination letters provide a 30-day period to request consideration by the IRS Independent Office of Appeals. The actual letter controls the requested action, and different notices can have different periods.
The firm reviews the proposed changes, supporting material, and available procedure before preparing a protest or other response. Read more about IRS appeals.
A Notice of Deficiency and Tax Court
A Notice of Deficiency may provide a route to challenge the proposed tax in the United States Tax Court without first paying the disputed amount. The petition generally must be filed within 90 days of mailing, with a 150-day rule in qualifying cases involving a notice addressed to a person outside the United States.
Do not assume that continued discussions with the IRS protect the filing deadline. Have the notice reviewed promptly and confirm the deadline applicable to the specific case.
You may represent yourself or use a representative admitted to practice before the Tax Court. Court admission is separate from authority to represent a taxpayer administratively before the IRS.
Contact the firm to discuss the matter and appropriate representation. Our Tax Court service page describes this area of work.
Keep the different deadlines separate
Notice or procedure | General timing point |
|---|---|
Examination 30-day letter | Follow the protest deadline on the letter; ask promptly about any available administrative extension |
Notice of Deficiency | Generally 90 days to petition Tax Court, or 150 days in qualifying circumstances |
Qualifying levy CDP notice | Commonly a 30-day period to request a hearing; follow the specific notice |
Lien CDP notice | Use the response date on the lien notice; the calculation is tied to the lien-filing and notification rules |
CDP Notice of Determination | A later, separate deadline generally applies to petition Tax Court for review |
The lien CDP period is not simply the examination-protest rule applied to a different letter. IRS guidance describes a 30-day hearing-request period associated with the five-business-day notification framework after lien filing; the Tax Court describes a generally 30-day petition period following a collection determination.
This overview is not a substitute for calculating a deadline from the actual notice. If a date may have passed, obtain a prompt review rather than assume that no remedy remains.
What if you cannot pay the amount in dispute?
Whether the tax is correct and how a balance can be paid are different questions. The current assessment, procedural stage, and any collection activity determine which issues need to be addressed together.
If a balance remains due after the dispute is resolved, the firm can evaluate appropriate payment or other resolution options. If the tax has already been paid and you believe it was incorrect, a refund-claim or refund-suit analysis may be relevant, subject to its own prerequisites and deadlines.
Preparing for a case review
Bring the complete notice, the return at issue, supporting records, and copies of previous IRS responses. Include any proposed adjustments, examination reports, or appeal correspondence.
Let the office know whether a deadline is approaching, a petition has been filed, or collection is active. That information helps distinguish the immediate task from the broader dispute.
Questions about audits and appeals
Q. Does receiving an audit letter mean the IRS has proved I owe more?
A. No. The letter identifies an examination or request that needs a response; the issues and supporting information still need review.
Q. Can a CPA or enrolled agent represent me before the IRS?
A. Yes, when eligible and properly authorized. Attorneys, CPAs, and enrolled agents can provide IRS representation, while Tax Court practice has separate admission requirements.
Q. Should I wait until Appeals to get advice?
A. You do not need to wait. A review during the examination can help clarify the request and organize the facts, while a later review can assess the proposed result and available procedural options.
Discuss your audit or appeal
Margolies Law Office offers a free, no-obligation consultation to discuss the issue and identify the next steps. Have the notice available and mention its response date when contacting the office.