IRS APPEALS FORMAL WRITTEN PROTEST

United States - Internal Revenue Service Independent Office of Appeals

Pursuant to IRC § 7803(e), Rev. Proc. 2012-18, and IRS Publication 5

CRITICAL DEADLINES: A formal written protest must be filed within the time period specified in the IRS letter (typically 30 days from the date of the letter). Failure to file a timely protest may result in the issuance of a Statutory Notice of Deficiency (90-day letter), after which the only recourse is to petition the U.S. Tax Court within 90 days. Do NOT miss your filing deadline.

TABLE OF CONTENTS

1. When a Formal Written Protest Is Required
2. Small Case Alternative (Under $25,000)
3. Taxpayer Information
4. Protest Requirements Checklist
5. Statement of Intent
6. Identification of Disputed Items
7. Statement of Facts
8. Legal Arguments and Authorities
9. Summary and Proposed Resolution
10. Conference Request
11. Attachments Checklist
12. Penalties of Perjury Statement
13. Representative Information
14. Mailing Instructions
15. Post-Filing Procedures
16. Alternative Dispute Resolution Options
17. Tax Court Petition Option

1. WHEN A FORMAL WRITTEN PROTEST IS REQUIRED

1.1. A formal written protest is required when:

☐ The total amount of additional tax, penalties, and interest proposed for any single tax period exceeds $25,000
☐ The case involves employee plan (EP) issues
☐ The case involves tax-exempt organization (EO) issues
☐ The case involves partnership items (TEFRA or BBA)
☐ The case involves S corporation items
☐ The IRS letter specifically requires a formal written protest
☐ The dispute involves a Collection Due Process (CDP) hearing request (IRC § 6320/6330)
☐ The dispute involves a rejected Offer in Compromise (IRC § 7122)
☐ The dispute involves a Trust Fund Recovery Penalty (IRC § 6672) assessment
☐ The dispute involves employment tax classification issues
☐ Other: [________________________________]

1.2. A formal protest must contain ALL of the following elements per IRS Publication 5 and Rev. Proc. 2012-18:
- Taxpayer's name, address, and taxpayer identification number
- Statement that the taxpayer wants to appeal the IRS findings to the Office of Appeals
- A copy of the letter showing the proposed changes
- The tax periods or years involved
- A list of the changes the taxpayer disagrees with and the reasons for disagreement
- The facts supporting the taxpayer's position on each disputed issue
- The law or authority supporting the taxpayer's position on each disputed issue
- A penalties of perjury statement

2. SMALL CASE ALTERNATIVE (UNDER $25,000)

2.1. If the total amount of additional tax and penalties proposed for each tax period is $25,000 or less, the taxpayer may use the simplified IRS Form 12203 (Request for Appeals Review) instead of a formal written protest.

2.2. Exceptions: Even if under $25,000, a formal protest is required for:
☐ Employee plan cases
☐ Tax-exempt organization cases
☐ Partnership cases
☐ S corporation cases
☐ Cases where the IRS letter specifically requires a formal protest

2.3. ☐ This case qualifies for the small case procedure (Form 12203)
☐ This case requires a formal written protest

3. TAXPAYER INFORMATION

[________________________________]
[LAW FIRM / REPRESENTATIVE LETTERHEAD]
[________________________________]
[Address]
[________________________________]
[City, State, ZIP]
[________________________________]
[Telephone]
[________________________________]
[Email]

Date: [__/__/____]

TAXPAYER IDENTIFICATION

4. PROTEST REQUIREMENTS CHECKLIST

Before submitting, verify that this protest contains all required elements:

☐ Taxpayer's name, address, and SSN/EIN
☐ Statement of intent to appeal to the IRS Independent Office of Appeals
☐ Copy of the IRS letter showing proposed changes (attached)
☐ Tax periods or years involved
☐ List of each disputed item with reasons for disagreement
☐ Detailed statement of facts for each disputed issue
☐ Legal authorities supporting the taxpayer's position for each issue
☐ Penalties of perjury statement (signed)
☐ Form 2848 (Power of Attorney) attached (if represented)
☐ Filed within the 30-day (or other specified) deadline

5. STATEMENT OF INTENT

[__/__/____]

Internal Revenue Service
[________________________________]
[Address from IRS Letter]

Re: Formal Written Protest
Taxpayer: [________________________________]
SSN/EIN: [________________________________]
Tax Year(s): [________________________________]
IRS Letter Date: [__/__/____]
Response Due Date: [__/__/____]

Dear Sir or Madam:

The undersigned, on behalf of [________________________________] ("Taxpayer"), hereby files this Formal Written Protest pursuant to IRC § 7803(e), IRS Publication 5, and Rev. Proc. 2012-18, and respectfully requests that the matters described below be considered by the IRS Independent Office of Appeals.

This protest is filed within the 30-day period specified in your letter dated [__/__/____] (copy attached as Exhibit A).

The Taxpayer disagrees with the proposed changes as set forth below and requests an Appeals conference to resolve the disputed issues.

6. IDENTIFICATION OF DISPUTED ITEMS

Item 1

Reason for Disagreement: [________________________________]

Item 2

Reason for Disagreement: [________________________________]

Item 3

Reason for Disagreement: [________________________________]

☐ Additional items attached as Exhibit B.

7. STATEMENT OF FACTS

The following facts support the Taxpayer's position regarding each disputed item. All factual statements are true, correct, and complete to the best of the Taxpayer's knowledge and belief.

Facts Related to Item 1

[Provide a detailed, chronological statement of the relevant facts. Include specific dates, amounts, parties involved, transactions, and other material information. Facts should be objective, verifiable, and supported by documentation.]

[________________________________]
[________________________________]
[________________________________]
[________________________________]
[________________________________]

Supporting Documentation: See Exhibits [________________________________]

Facts Related to Item 2

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Supporting Documentation: See Exhibits [________________________________]

Facts Related to Item 3

[________________________________]
[________________________________]
[________________________________]
[________________________________]

Supporting Documentation: See Exhibits [________________________________]

8. LEGAL ARGUMENTS AND AUTHORITIES

Legal Basis for Item 1

The Taxpayer's position is supported by the following legal authorities:

A. Internal Revenue Code:

☐ IRC § [________________________________]
- Provision: [________________________________]
- Analysis: [Explain how this Code section supports the Taxpayer's position. Include relevant subsections and specific language.]
[________________________________]
[________________________________]

B. Treasury Regulations:

☐ Treas. Reg. § [________________________________]
- Provision: [________________________________]
- Analysis: [________________________________]
[________________________________]

C. Revenue Rulings / Revenue Procedures:

☐ Rev. Rul. [________________________________]
☐ Rev. Proc. [________________________________]
- Holding/Provision: [________________________________]
- Application: [________________________________]
[________________________________]

D. Case Law:

☐ [________________________________] v. Commissioner, [________________________________] (Court, Year)
- Holding: [________________________________]
- Application: [Explain how this case supports the Taxpayer's position and why it is analogous to the present facts.]
[________________________________]

☐ [________________________________] v. [________________________________], [________________________________] (Court, Year)
- Holding: [________________________________]
- Application: [________________________________]

E. IRS Guidance:

☐ IRS Notice [________________________________]
☐ IRS Publication [________________________________]
☐ IRM Section [________________________________]
☐ Chief Counsel Advice [________________________________]
- Relevance: [________________________________]

Legal Basis for Item 2

[Follow the same format as Item 1]

A. Internal Revenue Code:
☐ IRC § [________________________________]: [________________________________]

B. Treasury Regulations:
☐ Treas. Reg. § [________________________________]: [________________________________]

C. Revenue Rulings / Revenue Procedures:
☐ [________________________________]: [________________________________]

D. Case Law:
☐ [________________________________]: [________________________________]

Legal Basis for Item 3

[Follow the same format]

9. SUMMARY AND PROPOSED RESOLUTION

A. Summary of Disputed Amounts

B. Penalties at Issue

☐ Reasonable Cause Defense (IRC § 6664(c)): The Taxpayer asserts reasonable cause and good faith for the position taken, based on: [________________________________]

☐ Reliance on Professional Advice (IRC § 6664(d)): The Taxpayer relied on the advice of a qualified tax professional: [________________________________]

C. Proposed Resolution

The Taxpayer proposes the following resolution of the disputed issues:

[________________________________]
[________________________________]
[________________________________]

10. CONFERENCE REQUEST

The Taxpayer requests an Appeals conference to discuss the matters raised in this protest:

☐ I request an in-person conference at the Appeals office nearest to: [________________________________]
☐ I request a telephone conference
☐ I request a video conference
☐ I am willing to participate in any format convenient to the Appeals Officer

Preferred Contact Times: [________________________________]

Preferred Contact Method: ☐ Telephone: [________________________________] ☐ Email: [________________________________]

Estimated Conference Time Needed: [________________________________]

11. ATTACHMENTS CHECKLIST

The following documents are attached in support of this protest:

☐ Exhibit A: Copy of the IRS letter proposing changes (30-day letter / examination report)
☐ Exhibit B: Additional disputed items (if applicable)
☐ Exhibit C: Copies of relevant tax returns for the years at issue
☐ Exhibit D: Supporting documentation for each disputed item:
☐ [________________________________]
☐ [________________________________]
☐ [________________________________]
☐ [________________________________]
☐ [________________________________]
☐ Exhibit E: Legal research memorandum (if applicable)
☐ Exhibit F: Form 2848, Power of Attorney and Declaration of Representative
☐ Exhibit G: Other: [________________________________]

12. PENALTIES OF PERJURY STATEMENT

REQUIRED - This statement MUST be included and signed.

Under penalties of perjury, I declare that I have examined the facts stated in this protest, including any accompanying schedules, statements, and exhibits, and, to the best of my knowledge and belief, they are true, correct, and complete.

Taxpayer Signature: _____________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

Spouse Signature (if joint return):

Signature: _____________________________________________

Printed Name: [________________________________]

Date: [__/__/____]

13. REPRESENTATIVE INFORMATION

☐ Not Applicable. Taxpayer is filing pro se.

☐ Represented by:

☐ Form 2848, Power of Attorney and Declaration of Representative, is attached (Exhibit F)
☐ Representative is authorized to receive copies of all IRS correspondence
☐ Representative is authorized to perform all acts related to this matter

Representative Signature: _____________________________________________

Date: [__/__/____]

14. MAILING INSTRUCTIONS

IMPORTANT: Do NOT send this protest directly to the IRS Independent Office of Appeals. Mail the protest to the IRS address shown on the letter that explains your appeal rights (the 30-day letter).

Mail to:

Internal Revenue Service
[________________________________]
[Address from IRS Letter]

Method of Delivery:

☐ Certified Mail, Return Receipt Requested (STRONGLY RECOMMENDED for proof of timely filing)
- Certified Mail Number: [________________________________]
- Date Mailed: [__/__/____]

☐ Private Delivery Service (FedEx, UPS, DHL - must be IRS-designated PDS per IRC § 7502(f))
- Tracking Number: [________________________________]
- Date Shipped: [__/__/____]

☐ Hand Delivery to IRS office
- Date Delivered: [__/__/____]
- Receipt obtained: ☐ Yes ☐ No

☐ Fax (only if IRS letter provides a fax number and authorizes fax submission)
- Fax Number: [________________________________]
- Date Faxed: [__/__/____]

Retain copies of the protest, all attachments, and proof of mailing/delivery.

15. POST-FILING PROCEDURES

A. What Happens After Filing

15.1. The IRS Examination division will forward your protest and case file to the IRS Independent Office of Appeals.

15.2. An Appeals Officer or Settlement Officer will be assigned to your case. Allow 60-90 days for initial contact after filing.

15.3. The Appeals Officer will contact you (or your representative) to schedule a conference.

15.4. Appeals operates independently from the IRS Examination and Collection divisions. Ex parte communication rules (Rev. Proc. 2012-18, § 4) prohibit the Appeals Officer from engaging in substantive communications with IRS Examination or Collection personnel without giving the taxpayer notice and an opportunity to participate.

B. At the Appeals Conference

15.5. Be prepared to present your case, including all supporting facts, documentation, and legal authorities.

15.6. The Appeals Officer has settlement authority and may propose a resolution different from either the IRS examination position or the taxpayer's position.

15.7. Appeals considers the hazards of litigation - the likelihood that each party would prevail if the case went to court.

15.8. ☐ If agreement is reached: Both parties sign a closing agreement (Form 870-AD or Form 906). The case is closed.

15.9. ☐ If no agreement is reached: The IRS will issue a Statutory Notice of Deficiency (90-day letter), and the taxpayer may petition the U.S. Tax Court within 90 days.

16. ALTERNATIVE DISPUTE RESOLUTION OPTIONS

The following ADR options may be available:

☐ Fast Track Settlement (FTS): Available during examination. An Appeals mediator assists in reaching settlement while the case remains with Examination. (Rev. Proc. 2003-40)

☐ Fast Track Mediation (FTM): Available for certain collection disputes. (Rev. Proc. 2003-41)

☐ Post-Appeals Mediation (PAM): If Appeals conference does not resolve all issues, both parties may agree to mediation. (Rev. Proc. 2014-63)

☐ Arbitration: Available for limited factual issues after Appeals. (Rev. Proc. 2006-44)

17. TAX COURT PETITION OPTION

17.1. If the taxpayer does NOT file a protest (or if Appeals is unsuccessful), the IRS will issue a Statutory Notice of Deficiency (IRC § 6212).

17.2. The taxpayer has 90 days from the date of the Notice of Deficiency (150 days if addressed to a person outside the United States) to file a Petition with the U.S. Tax Court (IRC § 6213).

17.3. Filing fee: The Tax Court filing fee is currently $60.

17.4. Small Tax Case Procedure (IRC § 7463): For disputes of $50,000 or less per tax year, the taxpayer may elect simplified "S" case procedures. These decisions are not appealable.

17.5. Full Tax Court Procedure: For larger disputes, the taxpayer files a regular petition. The Tax Court decision is appealable to the appropriate U.S. Court of Appeals.

17.6. Pay and File Alternative: Alternatively, the taxpayer may pay the assessed tax, file a claim for refund (Form 1040-X or Form 843), and if denied, file suit in U.S. District Court or the U.S. Court of Federal Claims.

PRACTICE NOTES

Protest Drafting Tips

• Be concise but thorough; Appeals Officers handle large caseloads
• Organize by issue with clear headings
• Cite specific IRC sections, regulations, and case law for each issue
• Include all relevant facts; do not assume the Appeals Officer knows the case
• Address the IRS's position and explain why it is incorrect
• Anticipate counterarguments and address them proactively
• Attach all supporting documentation, organized and indexed

Common Mistakes to Avoid

• Missing the 30-day filing deadline
• Omitting the penalties of perjury statement
• Failing to include all disputed items
• Sending the protest to the wrong IRS address
• Not attaching a valid Form 2848 when represented
• Failing to cite legal authority for each disputed item
• Incomplete or disorganized documentation

Penalties of Perjury Requirement

The penalties of perjury statement is MANDATORY. Without it, the protest is technically incomplete and may be returned. The exact language required is: "Under penalties of perjury, I declare that I have examined the facts stated in this protest, including any accompanying schedules and statements, and, to the best of my knowledge and belief, they are true, correct, and complete."

SOURCES AND REFERENCES

1. IRC § 7803(e) - IRS Independent Office of Appeals; establishment and authority
2. 26 U.S.C. § 7803(e)(3) - Right to Appeals conference
3. IRC § 6212 - Notice of deficiency
4. IRC § 6213 - Restrictions on assessment after notice of deficiency
5. IRC § 6320 - Notice and opportunity for hearing (lien)
6. IRC § 6330 - Notice and opportunity for hearing before levy (CDP)
7. IRC § 6664(c) - Reasonable cause exception to accuracy-related penalties
8. IRC § 6672 - Trust fund recovery penalty
9. IRC § 7122 - Offers in Compromise (Appeals review)
10. IRC § 7430 - Award of costs and fees (prevailing party)
11. IRC § 7463 - Small Tax Case procedure ($50,000 or less)
12. IRC § 7502 - Timely mailing treated as timely filing
13. Rev. Proc. 2012-18 - IRS Appeals procedures
14. Rev. Proc. 2003-40 - Fast Track Settlement
15. Rev. Proc. 2003-41 - Fast Track Mediation
16. Rev. Proc. 2014-63 - Post-Appeals Mediation
17. Rev. Proc. 2006-44 - Arbitration procedures
18. Treas. Reg. § 601.106 - Appeals functions
19. IRS Publication 5 - Your Appeal Rights and How to Prepare a Protest
20. IRS Publication 556 - Examination of Returns, Appeal Rights, and Claims for Refund
21. IRS Publication 1660 - Collection Appeal Rights
22. IRS Form 12203 - Request for Appeals Review (small case)
23. IRS Form 870-AD - Offer of Waiver of Restriction on Assessment
24. IRS Form 906 - Closing Agreement
25. IRS Form 2848 - Power of Attorney and Declaration of Representative

This template is provided for informational and educational purposes only. It does not constitute legal or tax advice. IRS procedures, deadlines, and requirements change frequently. Always verify current requirements at irs.gov and in current IRS publications. Consult with a qualified tax attorney, CPA, or enrolled agent before filing an Appeals protest. Use of this template does not create an attorney-client or representative-client relationship.