If you disagree with the IRS findings in your case, you can appeal your case to the Appeals Office of the IRS. The local Appeals Office is separate from and independent of the IRS office that proposed the adjustment. Appeals Office reviews are conducted in an informal manner, by correspondence, telephone or at a personal conference. Most differences are settled in these appeals without expensive and time¬consuming court trials.

If you disagree with the IRS findings in your case, you can appeal your case to the Appeals Office of the IRS. The local Appeals Office is separate from and independent of the IRS office that proposed the adjustment. Appeals Office reviews are conducted in an informal manner, by correspondence, telephone or at a personal conference. Most differences are settled in these appeals without expensive and time¬consuming court trials. The following information will help you determine what your appeal rights are and how to proceed.

• Appeal disputes arising under the Internal Revenue Code, regulations and procedures;
• An explanation of the Appeals process;
• A timely conference and resolution of their dispute.

• Listen to the Appeals Office explanation of your appeal rights and the Appeals process;
• Provide the Appeals Office with a statement as to your understanding of the facts and the law, and a list of all issues that you disagree with and the reason that you disagree;
• Give the Appeals Office any additional information or documentation that will be helpful to your case;
• Tell the Appeals Office what you believe to be an appropriate compromise or concession by the government or yourself;
• Let the Appeals Office know the best time to contact you;
• Tell the Appeals Office the month and date by when you would expect to close your case with the IRS.

You can represent yourself in Appeals, and you may bring another person with you to support your position. If you want to be represented by someone, the person you choose to represent you must be an attorney, a certified public accountant, or an enrolled agent authorized to practice before the IRS. If you plan to have your representative talk to the IRS without you, we need a copy of a completed power of attorney Form 2848 Power of Attorney and Declaration of Representative.

An ITIN, or individual Taxpayer Identification Number, is a tax processing number that became available on July 1, 1996, for certain nonresident and resident aliens, their spouse, and dependents. The ITIN is only available to individuals who cannot get a Social Security Number (SSN). It is a 9-digit number, beginning with the number “9”, formatted like an SSN (NNNNN NNN). The temporary IRS Number previously assigned is no longer valid.

If you must file a U.S. tax return or you are listed on a tax return as a spouse or a dependent and you do not have, and cannot obtain, a valid Social Security Number, you must apply for an ITIN. The IRS no longer accepts “SSA205c”, “applied for”, “NRA”, blanks, or previously issued IRS temporary numbers. Include your ITIN on the return to ensure prompt processing and receipt of any refund. New Internal Revenue Regulations require including a valid Tax Identification Number (TIN) on all U.S. federal income tax returns. Each person listed on the return must have a valid TIN (either an SSN or an ITIN). If a return requesting a refund is filed without an SSN or ITIN for the primary filer and spouse, the refund will be delayed until they obtain the identification number. If a dependent SSN/ITIN is missing, the exemptions will be denied and refunds will be adjusted accordingly. If you are previously issued a temporary IRS Number, you must now apply for an ITIN.

To obtain an ITIN, you must complete IRS Form W7, Application for IRS Individual Taxpayer Identification Number. You may complete and sign a Form W7 for a minor dependent. However, other dependents and spouses must complete and sign their own Forms W7. The Form W7 requires documentation substantiating foreign/alien status and true identity for each individual. If you, your spouse and/or dependents need ITINs, you may submit separate Forms W7 and documentation at the same time. You may mail the documentation, along with the Form W7, to the Philadelphia Service Center, present it at IRS walk-in offices, or process your application through Acceptance Agent authorized by the IRS.

No. ITINS are only used for federal income tax purposes. Alien individuals who are legally admitted to the U.S. for permanent residence or other categories that authorize U.S. employment are eligible for Social Security Numbers (SSNs). Individuals who are eligible for SSNs are ineligible for ITINS

Acceptance Agents are entities (colleges, financial institutions, accounting firms, etc.) who are authorized by the IRS to assist applicants in obtaining ITINs. They review the applicant’s documentation and forward the completed Form W7 to IRS for processing.

An offer in compromise (OIC) is an agreement between a taxpayer and the Internal Revenue Service that settles the taxpayer’s tax liabilities for less than the full amount owed. Absent special circumstances, an offer will not be accepted if the IRS believes that the liability can be paid in full as a lump sum or through a payment agreement. In most cases, the IRS will not accept an OIC unless the amount offered by the taxpayer is equal to or greater than the reasonable collection potential (RCP). The RCP is how the IRS measures the taxpayer’s ability to pay and includes the value that can be realized from the taxpayer’s assets, such as real property, automobiles, bank accounts, and other property. The RCP also includes anticipated future income, less certain amounts allowed for basic living expenses.

Doubt as to Collectability—Doubt exists that the taxpayer could ever pay the full amount of tax liability owed within the remainder of the statutory period for collection. Example: A taxpayer owes $20,000 for unpaid tax liabilities and agrees that the tax she owes is correct. The taxpayer’s monthly income does not meet her necessary living expenses. She does not own any real property and does not have the ability to fully pay the liability now or through monthly installment payments. Doubt as to Liability—A legitimate doubt exists that the assessed tax liability is correct. Possible reasons to submit a doubt as to liability offer include: (1) the examiner made a mistake interpreting the law, (2) the examiner failed to consider the taxpayer’s evidence or (3) the taxpayer has new evidence. Example: The taxpayer was vice president of a corporation from 2004-2005. In 2006, the corporation accrued unpaid payroll taxes and was assessed a trust fund recovery penalty as a responsible party of the corporation. The taxpayer was no longer a corporate officer and had resigned from the corporation on 12/31/2005. Since the taxpayer had resigned prior to the payroll taxes accruing and was not contacted prior to the assessment, there is legitimate doubt that the assessed tax liability is correct. Effective Tax Administration—There is no doubt that the tax is correct and there is potential to collect the full amount of the tax owed, but an exceptional circumstance exists that would allow the IRS to consider an OIC. To be eligible for compromise on this basis, a taxpayer must demonstrate that the collection of the tax would create an economic hardship or would be unfair and inequitable.