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    • Ronson J. Shamoun, ESQ., LL.M.
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  • Home
  • About
    • Ronson J. Shamoun, ESQ., LL.M.
    • Chandara Diep, ESQ., LL.M.
    • Joseph Cole, ESQ., LL.M.
    • Devon J. Arabo, ESQ., LL.M.
    • Lauren Suarez, ESQ., LL.M.
    • Daniel Huynh, Esq., LL.M.
    • Christopher Engelmann, ESQ., LL.M.
    • Leslie Miranda, Esq., LL.M.
    • Brian M. Malloy, Esq.
    • Steve S. Mattia, Esq.
    • Sam Imandoust, ESQ., LL.M
    • Kaveh Imandoust, JD, MBT, CPA
    • Andrea Cisneros Valdez, Esq., LL.M.
    • Martin Schainbaum, ESQ., LL.M.
    • Dod Ghassemkhani, ESQ.
    • Vincent Renda, Esq.
    • Pedro Bernal, Esq.
    • Melanie M. Shamoun
    • Sandie Portilla
    • Renae Arabo
    • Sabri P. Shamoun
    • Hilary Dargavell
    • Lupita C. Torres
    • Jewell Cornejo
    • Kesia Belford
    • Remy Hogan
    • Judith Jeremie
    • Marley Smith-Peters
    • Melanie Chan
    • Tanner DeMera
    • Charles Ecker
    • Anna Gurr
    • Asia Smith
  • Practices
    • ERTC – Call Us Before It’s Too Late!
    • Tax
      • IRS TAX MATTERS
        • IRS Appeals
          • IRS Appeals Process
          • Contesting an IRS Levy
          • Why Retain RJS LAW for IRS Appeals
          • 4 Tips For Navigating The IRS Rapid Appeals Process
        • IRS AUDITS
          • IRS Correspondence Audits
          • What are IRS Field Audits?
          • Initial IRS Compliance Center Audits
          • IRS Office Audits
          • What happens in an IRS Audit?
          • Taxpayer Rights Under IRS Publication 1
          • IRS Warns Taxpayers About Scam
        • NOTICES
          • IRS Notices
          • IRS Letters
          • FTB Notices
          • Avisos en Español
        • IRS Collections
          • Avoiding and Eliminating IRS Tax Liens
          • Collection Due Process Hearing
          • CP 501 – IRS Notice
          • Failure to file a tax return: What happens?
          • How the IRS calculates interest
          • How to get a tax levy released
          • ACS – Automated Collection System
          • IRS Collections Process
          • IRS Interest Abatement
          • IRS Revenue Officers
          • Jeopardy Assessments and Jeopardy Levies
          • National Tax Agencies
          • RJS LAW Approach to Collections
          • IRS Statute of Limitations on Collections
          • Streamlined Installment Agreements
          • Tax Penalty Abatement
          • Taxpayer Assistance Orders
        • IRS Payroll Tax
          • Independent Contractor Reclassification Audits
          • IRS Forms 940 and 941
          • IRS Trust Fund Interviews
          • Payroll Tax Liability Payment Options
          • Trust Fund Recovery Penalties
        • IRS Wealth Squad
        • Offer in Compromise & Tax Settlements
          • OVERVIEW OF OFFER IN COMPROMISE PROCESS
          • The Offer in Compromise Process
          • Appealing an Offer in Compromise
          • How does the IRS evaluate an Offer in Compromise
          • Offer in Compromise and Dissipated Assets
          • Offer in Compromise Requirements
          • Pros and Cons of an Offer in Compromise
          • Why Choose RJS LAW?
          • Offer in Compromise Alternatives
          • Actual IRS Offer in Compromise Results
      • STATE TAX MATTERS
        • EDD California Payroll Tax Lawyer
          • EDD Investigations
          • EDD Collections – Liens, Levies, and Garnishments
        • CDTFA – California Sales Tax
          • California Sales Tax Appeals
          • California Sales Tax Audits
          • California Department Of Tax And Fee Administration – CDTFA
        • California State Tax Matters – California Franchise Tax Board | FTB | EDD
          • California Residency Audits
          • Discharging State Income Taxes in Bankruptcy
          • State Tax Practice – Outside of California
      • CRIMINAL TAX ISSUES
        • Criminal Investigation Division
        • IRS Criminal Investigation Division Tactics
        • Criminal Tax Defense – Tax Crimes
        • Currency Transaction Records & Suspicious Activity Reports
        • IRS Methods of Proof: Tax Fraud and Evasion
        • Methods IRS Agents Use to Locate Assets
        • IRS Special Agent Visits
        • Are You a Criminal Investigation Target?
        • Criminal Tax Attorney vs. White Collar Defense
      • CORPORATE TAXES
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      • Innocent Spouse Relief
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    • Trust, Estate & Probate Litigation
    • Trust & Estate Administration
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    • Private Wealth Services
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      • Landlord Tenant Law
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  • Tax Institute
    • 8th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 28th, 2023
    • 7th Annual USD School of Law – RJS LAW Tax Controversy Institute – July 15th 2022
    • 6th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 5th Annual USD School of Law – RJS LAW Tax Controversy Institute
    • 4th Annual USD School of Law – RJS LAW Tax Controversy Institute
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    • RJS Law Donates Billboard to the Girl Scouts
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Can I Appeal a Corporate Tax Audit?

Can I Appeal a Corporate Tax Audit?

If you have received an unfavorable examination report from the Internal Revenue Service (IRS) following a corporate tax audit, you are not alone. The IRS routinely audits corporate returns, and it is not unusual for corporate tax audits to result in determinations of additional tax liability.

Fortunately, an examination report is not the final word on a corporate taxpayer’s obligation to pay the IRS. If you are dissatisfied and disagree with the auditor’s conclusions, you have the right to file an appeal.

Challenging an Examination Report in the IRS Office of Appeals

Challenging an unfavorable examination report starts with filing a protest with the IRS Office of Appeals. As explained on the IRS’s website:

“The Office of Appeals is an independent organization within the IRS that helps taxpayers resolve their tax disputes through an informal, administrative process. Our mission is to resolve tax controversies fairly and impartially, without litigation. Appeals reviews cases after the IRS has made its decision, offering an objective point of view on each appealed case.”

Upon receiving an examination report, you have 30 days to file a protest. Waiting too long or filing improperly can result in loss of the right to an appeal (in which case you may need to challenge the auditor’s conclusions in Tax Court litigation).

Additionally, filing a protest with the Office of Appeals tolls the obligation to pay the alleged underpayment, and the appeals process can easily take up to a year, if not longer. However, if the Office of Appeals upholds the auditor’s decision, then your company will be required to pay interest (and potentially penalties) accrued during the period of tolling.

While corporate tax audit protests often result in the reduction or elimination of tax liability, the appeals process has one significant potential drawback: Rather than focusing solely on the issues raised in the protest, the Office of Appeals can re-examine the entire and potentially determine that additional tax is owed.

As a result, prior to filing a protest, corporations should work with their tax counsel to assess the merits (and potential oversights) of all aspects of the auditor’s decision. If it appears that the auditor overlooked some issues, then it may be more desirable to go directly to the Tax Court, where new issues cannot be raised. Any underpayments of federal tax will ultimately need to be addressed; however, the appeals process is not necessarily the best forum for doing so.

Grounds to Protest an IRS Corporate Tax Audit

When should you consider appealing an IRS corporate tax audit? Setting specific legal issues aside, there are four primary grounds for filing a protest with the Office of Appeals:

  • Misinterpretation of the Law – Corporate taxpayers can successfully appeal IRS tax audits where the auditor, “made an incorrect decision based on a misinterpretation of the law.”
  • Misunderstanding of the Facts – In addition to misinterpretations of law, corporate tax audits can also be appealed on the basis that, “the IRS did not properly apply the law due to a misunderstanding of the facts.”
  • Inappropriate Collection Action – “If you believe the IRS is taking inappropriate collection action against you, or your offer in compromise was denied and you disagree with that decision,” you have grounds to file a protest with the Office of Appeals.
  • Incorrect Facts – If the auditor did not misunderstand the facts but instead relied on facts that are incorrect, then presenting evidence in support of your company’s position may result in a reversal on appeal.

Contact RJS Law | Southern California Tax Law Firm

Our firm represents businesses throughout Southern California in IRS tax audits and appeals as well as Tax Court litigation. If you have questions and would like to speak with an attorney, please call 619-595-1655 or contact us online for a complimentary case evaluation.

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