How many of you have taken issue to Appeals?

[Zee]

I'm wondering how many of you have taken a tax return audit to the appeal stage? And, what do you think the success rate is?

[OtisMozzetti]

No answer; but a comment

Pardon me for not responding at all to your questions in the format you request. The comment that I do have, though, is that the success rate would obviously seem to depend very, very, very much upon how valid the issue being appealed is.

[jimmcg]

I'm wondering how many of you have taken a tax return audit to the appeal stage? And, what do you think the success rate is?

Go to the appelate level quite often. In the beuracratic mentality an individiual at the appelate level is graded on cases that are closed whereas an individual at the audit level is generally graded based on what is writen up. Therfore the appelate level has a greater propensity to settle cases. That said the better your case certainly has much to do with it also.

[taxmandan]

I've had some go to Appeals, usually after being docketed in Tax Court. Success has been perfect, if by success you mean we resolved the issues without ending up in TC. Had one OIC that went to Appeals and the AO was very helpful, suggesting a ETA petition would be acceptable, so we amended our OIC to that and he approved it.

Appeals does consider the cost of litigation in the decision to settle, something that Exams cannot, and will not take into consideration in taking a position on an issue. That can be to your advantage.

[Snaggletooth]

Can you Tell Us

I'm wondering how many of you have taken a tax return audit to the appeal stage? And, what do you think the success rate is?

Zee, did you ever go to work for the IRS? And if so, are you permitted to tell us?

I have had a couple audits closed favorably by threatening to appeal, but have had a couple I didn't think our case was strong enough. Maybe I made a mistake by not appealing.

I've found out that auditors really do want the audit closed, but they're not willing to give away the store.

[erchess]

Never been to appeals

but I would certainly go if the client desired it and either I felt comfortably able to handle it or the client really pressed me, not wanting to go to a buddy of mine who does nothing but representation.

An audit is basically a conversation between me and the auditor who is for the moment prosecutor and judge but its probably similar to a pretrial conference between two lawyers or a lawyer and a DA. In both cases the client may or may not be present but if present has been told not to speak unless spoken to or nodded to by counsel. The similarity I see between legal and audit conferences is that in both cases there is the possibility that things will be settled here and also the possibility that the case will move on to a more formal situation involving other people.

Frankly the idea of going to appeals troubles me because I don't know the rules. If anyone can point me to a good source of education on Appeals I would appreciate it.

[taxmandan]

If you're an EA,

If anyone can point me to a good source of education on Appeals I would appreciate it.

The NTPI program put on for EAs has great education about all things in representation. Many EAs indicate they aim to get the audit into Appeals as quickly as possible, where it is often easier to get agreement by an AO on issues when Exams is being hardheaded in the audit. One EA says he frequently ignores the audit, lets the RA write up the results and then handles the case in Appeals. A very aggressive approach, but it keeps the client from yakking too much and shooting themselves in the foot during interviews in the audit. The RA can't go fishing in audit, and Appeals is limited to what was in audit, not likely to find anymore skeletons in the closet, so to speak.

[DaveO]

I haven't had to take a field audit to appeals yet but every OIC I have done has ended up there. I've had some CP2000 notices end up there as well. The big difference I see is that the appeals officer usually has 20 years or more experience whereas the RO usually has around 10 years.