Question

In: Accounting

1. Jim receives his Tax Notice in November and decides the taxes are too high and...

1. Jim receives his Tax Notice in November and decides the taxes are too high and he wants to appeal them at this time. Is this possible? Why or why not?

Solutions

Expert Solution

Jim received a tax notice in November from IRS demanding high taxes from Jim and Jim is disagree form IRS and want to protest. Now if it is first notice from IRS than it is not possible for Jim to appeal directly this tax notice to appeal office of IRS because it is not provided in IRS rules so if it is first notice or letter from IRS demanding taxes from Jim he would required to approach first IRS office not IRS appeal office.

Firstly, Jim should respond to notice within specified time given in notice (normally 30 days) by a letter explaining why they disagree and should be mailed at address mentioned in tax notice.

Taxpayer should respond timely to tax notice to minimize possible interest and penalty charges and to preserve appeal rights.

After this IRS office will examine and reached on a decision and will communicate you by a tax notice.

Now if you are disagree with IRS tax notice reached by the examination and want to protest, you may appeal to IRS appeal offices. Appeal can be made within time specified in tax notice sent to you by IRS on examination of returns.

Appeal may be done by the tax payer itself or CPA or advocate for the client.

So Jim should respond first to IRS office within time and after disagreement from further tax notice from IRS out of examination and being heard Jim, he can approach IRS appeal office within specified time provided in IRS notice.

So above description clears about Jim’s problem.


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