What the Appeals office does
The IRS Independent Office of Appeals is part of the IRS, but it operates separately from the examination function that proposed the adjustments. Its job is to resolve disputes without litigation, and in doing so it weighs how a court might rule on each issue rather than simply defending the examiner's position. Rules restrict one-sided communications between examiners and Appeals officers about the substance of your case, which is meant to protect that independence. Appeals generally does not conduct a fresh audit, although significant new information you present may be sent back to the examiner for review. Conferences are usually informal and can take place by phone, by video, or in person.
Writing the protest
In many cases, reaching Appeals requires a written protest explaining which adjustments you disagree with and why, while smaller cases can often use a simpler request. The protest is the first time someone outside the exam team sees your side laid out in full, so it should set out the facts, the law relied on, and the documents that support each point. It also carries a declaration made under penalties of perjury, which is one reason to draft it carefully with counsel. The letter offering Appeals sets a response period, and missing it usually means the case moves toward a notice of deficiency instead. Appeals also wants enough time left on the period for assessing tax, and the IRS sometimes asks for a consent extending that period before it will accept the case.
Is Appeals the right forum
Appeals tends to suit disputes where the facts are documented and the disagreement is about how the law applies to them, or where both sides face real risk if a judge decides. It is a weaker fit when the core problem is missing records that still need to be found. We read the examination report against your file, separate the issues worth arguing from those better conceded, and estimate what each one is worth. We also consider whether any part of the audit raises penalty or fraud questions that change how much should be said in writing. Then we decide together whether to protest, agree in part, or let the case proceed toward the Tax Court, where Appeals can still become involved.
