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