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
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