Tax Appeals – A Powerful Tool
Skill and Experience in Tax Law in Minnesota
A tax issue can have serious financial and personal repercussions, so when you run into this type of challenge, experienced legal help is essential. Our tax attorneys at Pridgeon & Zoss, PLLC, understand the complexities of the Minnesota Department of Revenue and the Internal Revenue Service. Working closely with you, we represent your interests while determining the best course of action.
If you disagree with your IRS or Minnesota Department of Revenue audit results, you have the right to appeal. At the law firm of Pridgeon & Zoss, PLLC, we have a comprehensive knowledge of federal and Minnesota tax appeals. Let us put our experience to work for you.
Our attorneys pride themselves on their successful record of appealing tax cases in the United States District Court and the U.S. Tax Court, and in the Minnesota tax courts, including the Minnesota Supreme Court.
Your Right to Appeal
After an unsatisfactory audit, but before going to court, you have the right to bring your tax matter before the appeals division of the IRS or the MN Department of Revenue. In an appeal, you can protest such tax matters as:
- The amount of your tax liability
- Collection actions were taken against you such as tax liens, levies, seizures, and installment agreement terminations
- Penalties and interest
With the help of an experienced tax law attorney, the appeals process can give you a wide variety of workable solutions.
The Appeal Process
IRS Appeals
There are two ways in which a taxpayer can challenge an assessment at IRS Appeals. Taxpayers can file a protest when the IRS issues a 30-day letter. As the name suggests, you typically have 30 days to file an appeal. If a taxpayer does not appeal the 30-day letter, they may be referred to IRS Appeals after they petition the US Tax Court.
In IRS Appeals, a taxpayer can argue that the IRS’ assessment is incorrect. If a taxpayer presents new information, IRS Appeals will generally refer the matter back to the office making the originally proposed assessment to review and determine the new information. To ensure Appeals has enough time to consider protested cases before the statute expires, the IRS often requests statute extensions. A careful review of the statute extensions is essential to ensure that they are not overly broad.
Minnesota Department of Revenue Appeals
The state of Minnesota imposes a variety of taxes. These include income tax on individuals and corporations, and sales and use taxes. If a taxpayer’s tax return or refund request contains incorrect information, the Commissioner of Revenue may deny a refund or determine that the taxpayer owes tax.
Appeals can be filed with the Minnesota Department of Revenue or directly with the Minnesota Tax Court. The appeal must be filed within 60 days of the date on the tax order, although you may make a written request for a 30-day extension.
Following the completion of an administrative appeal, the commissioner will issue a determination stating the results of the appeal. Taxpayers who disagree with the commissioner’s findings have 60 days from the date of the final order to appeal to the Minnesota Tax Court.
If you choose to appeal directly to the tax court instead of making an administrative appeal first, your case will be heard by the small claims division if the tax amount at issue is less than $15,000. If the amount of controversy is higher, your appeal will be heard by the regular division.
At the law firm of Pridgeon & Zoss, PLLC, we help clients through the tax appeal process from start to finish, working with them all along the way to resolve tax disputes. We assist both individuals and small businesses in all stages of the process, including:
- Reviewing and organizing client documents
- Drafting and filing a Protest (a document that discusses the facts and frames the client’s situation in terms of the written law)
- Preparing correspondence and e-mails to IRS or Department of Revenue Appeals Officers
- Representation of the client’s interests and protection of the client’s rights at the telephone or in-person hearing
After receiving the evidence and testimony at the hearing, the IRS or Department of Revenue appeals division will reach a decision. If the decision upholds the audit findings, we can help you with litigation in the appropriate court of law.
Regardless of whether you are dealing with the IRS or the Minnesota Department of Revenue, it’s important to act quickly. Appeals must be submitted in a timely manner in order to be considered. Frequently, however, the IRS and MDR fail to clarify your appeal rights or provide any information about what you need to present to achieve the best result. It makes it difficult for you to understand the urgency of the situation. An experienced legal advocate can help you request an appeal on time and present a case designed to achieve the best results.
What if the IRS Appeals Division Rules Against Me?
If the IRS Appeals Division decides against you, you can dispute that decision by filing a petition in the United States Tax Court. Unlike the Appeals Division, which analyzes your dispute primarily based on the documentation provided, the U.S.Tax Court will consider whether you or the IRS correctly interpreted the law as it applies to your case. While your appeal from the audit findings of the IRS auditors is pending, the IRS is prohibited from pursuing collection against you.
When you hire an attorney who is admitted to practice before the U.S. Tax Court and has experience presenting tax cases to both the IRS Appeals Office and U.S. Tax Court, you ensure continuity that can be critical to success. Your Minnesota Tax Appeals lawyer at Pridgeon & Zoss, PLLC, will provide the same level of skilled and effective representation in both forums.
If I Appeal Against IRS Collection Notices, Does Collection Activity Stop?
A statutory right to appeal is offered on certain IRS collection notices, including the Final Notice of Intent to Levy and Notice of Lien Filing. When you appeal within the 30-day timeframe, all collection activities, such as property seizure, wage garnishments, and bank levies, must be stopped.
During this collection hold, you and your lawyer can submit collection alternatives, such as an Offer In Compromise, Installment Agreement, or Currently Not Collectable status, and the Appeals Settlement Officer may accept them. Following your presentation to the Settlement Officer, they will issue a Notice of Determination with the final resolution. If you disagree with that determination, you and your Minnesota tax appeals lawyer may petition the U.S. Tax Court to challenge the findings.
Why Should I Hire a Minnesota Tax Appeals Attorney?
Negotiating an Appeal requires a certain level of expertise with state and federal tax laws. Our attorneys apply all of their training and experience to the following critical actions:
Fact Development: Achieving concessions or a strong settlement in Appeals begins with assembling the type of evidence that would prevail at trial. Our attorneys gather and present the documents that support your position.
Written Advocacy: Our legal research and protests have persuaded many Appeals officers that the IRS was not right.
Oral Advocacy and Negotiation: A persuasive protest is necessary, but on its own, it is not sufficient. The taxpayer’s arguments must be effectively presented during in-person conferences. We have extensive experience working face-to-face with appeals officers and we fight hard for our clients.
Consult With a Minnesota Tax Appeals Lawyer
The tax lawyers at Pridgeon & Zoss, PLLC, are available to assist individuals and businesses with tax issues, whether it’s a current dispute, complex audit, or collection action. Our goal is to find solutions that are tailored to fit your specific needs.
Contact us online or by phone at 952-835-8320 to speak with an experienced tax law attorney. We are available during regular business hours; you may leave us a voice mail at any time. We offer a free initial consultation discount so we can learn about your circumstances and let you know whether and how we can help with your tax appeal.
