16. APPEAL PROCEDURE

§ 5:82 In General

You must submit a written protest to the assertion and assessment of the Trust Fund Recovery Penalty. An oral protest is inadequate. No interest will accrue during the pendency of your protest Therefore, delays by the Internal Revenue Service in processing a protest usually are to the client’s benefit. Upon receipt of a protest, the Revenue Officer will prepare a rebuttal and submit the file through Special Procedures function (SPF) to the Office of Appeals. [IRM 5.7.6.1.3]

§ 5:83 Appeals Conference

The appeal is considered by the Office of Appeals, which also hears appeals on audit matters. Your client has the right to have a personal conference with an Appeals Officer. He or she may be represented by an accountant or attorney and present evidence and witnesses on his or her behalf. [See also Representation Before the Appeals Division of the IRS, another Tax Practice Workbook]

If you convince the Appeals Officer that your client is not a responsible person, he or she will recommend nonassertion of the Penalty. If you fail to convince the Appeals Officer, an assessment will be made by the Service without your client being granted the right to go to Tax Court. Read More