No one wants to get picked for a tax audit, but it happens. The Internal Revenue Service not only looks for red flags on tax forms that would warrant tax audits, but it also randomly selects Connecticut residents to put through the wringer every year, just because they can. When an audit is complete, some people may feel that they have to live with the results, but the truth is, it may be possible to fight the results by filing an appeal.
A tax audit can have one of three outcomes. The first, and what everyone hopes for, is that nothing will be found and no further taxes or penalties will need to be paid. The second is that an issue will be found, and taxes and penalties will need to be paid to bring one’s tax obligation current. The third is that a major violation will be found, which can result in the need to pay further taxes and penalties, and criminal charges may be filed.
Anyone who would like to appeal the results of a tax audit needs to file the official appeal request within a specific time frame — usually within 30 days of receiving your audit results. The deadline to file an appeal should be listed on the letter sent to you by the IRS regarding your audit results. An extension may be requested if one feels it is necessary. To file a formal protest, it will be necessary to include the following information with the petition:
- Taxpayer name and contact information
- A statement asking for an appeal
- Copy of audit results
- Information about the tax period audited
- List of disagreements and reasons for those disagreements
- Facts supporting one’s case
- Any laws that support one’s case
- A penalties-of-perjury statement
- Signature
It is a lot of information, and if any of it is missing or if the information provided is insufficient, one’s appeal may be denied. If the appeal moves forward, it will be necessary to attend a hearing. The appeals officer can ask for more information or try to settle the matter.
Connecticut residents who are facing tax audits or who need help with the appeals process can seek help from a tax attorney. Legal counsel can walk one through the audit and/or appeals processes. One’s attorney can also be present at any hearings to offer support and present one’s case.