The Independent Office of Appeals is the IRS's internal quasi-judicial body. It settles cases based on the 'hazards of litigation' — what the government would risk if the case went to Tax Court. Appeals conferences resolve the majority of contested cases without litigation.
An at-a-glance view of every step covered in this guide.
Balances under $25,000 use Form 12203, a Small Case Request. Above $25,000, a formal written protest is required — with taxpayer info, items in dispute, facts, law, and argument. The protest is filed within 30 days of the 30-day letter.
Conducted by phone, video, or in person. The Appeals Officer reviews the file, hears both sides, and evaluates litigation risk. Settlement can be a compromise on tax, penalties, or both.
Under §7803(e), Appeals is prohibited from ex parte communication with Exam. In practice, Appeals reaches different outcomes than Exam in most contested cases.
6–12 months from protest filing to Appeals conference is typical; complex or docketed cases can take 12–18 months. Collection stays paused on collection-source Appeals cases throughout.
Yes if you have a Statutory Notice of Deficiency — you have 90 days to petition. But Tax Court will often route the case back to Appeals for settlement discussions before trial.
Appeals evaluates the probability the IRS would lose the case in court. Weak IRS positions settle at a discount; strong positions settle closer to full assessment.
A licensed tax attorney will pull your IRS transcripts, review your situation, and walk you through the resolution options that fit — no obligation.