Who May Apply to AADR

Who May Apply?

If you were audited by DOTAX, you can appeal any of the following:

• Notice of Proposed Assessment
• Notice of Final Assessment
• Notice and Demand of Penalty (return preparer penalty)

You cannot appeal the following to the Administrative Appeals Office:

• Statement of Taxpayer
• Notice of Personal Liability
• Letter from the Taxpayer Services Branch denying a refund due to the statute of limitations

Should I Apply?

Some reasons to file an appeal:

• You believe the facts do not support the assessment.
• You believe the assessment does not follow the law.

Before you appeal, you must try to resolve all issues with the Compliance Division. This includes, but is not limited to:

• Providing the auditor or examiner with the all information requested;
• Providing the auditor or examiner a written explanation of the disputed items; and
• Providing the auditor or examiner with evidence to support your position.

Eligibility & Criteria

The Administrative Appeals Office will only accept cases where:

• The issues and facts are fully developed and documented;
• There are a limited number of issues in dispute; and
• The parties are willing to resolve all of the disputed issues and act in good faith to find a resolution

Ineligible Issues

The Administrative Appeals Office may at its discretion determine that AADR is not appropriate for certain cases. AADR is not available for:

• Issues designated for litigation by the Attorney General;
• Issues for which there is no legal precedent;
• Industry specialization issues;
• Disputing an adjustment letter or billing notice that is unrelated to an audit;
• Collection issues; and
• Jeopardy assessments.

Page Last Updated: April 16, 2021