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Appeals Process Basics and Selected Items

1. Describe the steps in the appeal process for an individual tax payer.

Define the following and give examples:

a. gross income

b. income excluded from tax

c. imputed interest

d. adjusted gross income

e. standard deduction

f. itemized deductions

g. phaseouts

h. kiddie tax

i. tax credits

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1. Describe the steps in the appeal process for an individual tax payer.

Based on Pub 556 of the Internal Revenue Service

The Service has an appeals system. Most differences can be settled within this system without expensive and time-consuming court trials. You may be eligible to take your case to court if you do not reach an agreement at your appeals conference, or if you do not want to appeal your case to the IRS Office of Appeals. See Appeals to the Courts, later, for more information.

Appeal Within the IRS

You can appeal an IRS tax decision to a local Appeals Office. The Appeals Office is the only level of appeal within the IRS. Conferences are held in an informal manner by correspondence, by telephone, or at a personal conference.

If you want a conference, follow the instructions in the letter. The request will be sent to the Appeals Office to arrange a conference at a convenient time and place. You or your representative should be prepared to discuss the issues at the conference. Many differences are settled at this level.

Appeals to the Courts

If you and the ...

Solution Summary

This solution outlines the basic approach to the Appeals process of the Internal Revenue Service and in addition it contains some selected items for definitions.