Understanding the Thirty-day Letter: Your Guide to IRS Appeals
Definition & Meaning
A thirty-day letter is an official communication from the Internal Revenue Service (IRS) that informs a taxpayer of the results of an income tax audit. It provides the taxpayer with thirty days to appeal the findings presented by a revenue agent. This letter is typically sent after a taxpayer's claim for a refund has been rejected and accompanies a revenue agent's report. The thirty-day letter outlines the appeal process available to the taxpayer, allowing them to request a conference to discuss any proposed adjustments to their tax liability.
Legal Use & context
This term is primarily used in tax law and is relevant during the audit process conducted by the IRS. Taxpayers may encounter a thirty-day letter when they wish to contest the findings of an audit. Understanding this letter is crucial for individuals and businesses who may need to navigate the appeals process effectively. Users can utilize legal templates from US Legal Forms to assist with drafting responses or appeals related to a thirty-day letter.
Real-world examples
Here are a couple of examples of abatement:
(Hypothetical example) A taxpayer receives a thirty-day letter after an IRS audit reveals discrepancies in reported income. The letter informs them of the proposed adjustments and provides instructions on how to appeal the findings if they disagree.
(Hypothetical example) A small business owner receives a thirty-day letter following an audit that denied their claim for a tax refund. The letter details the adjustments made and the steps they can take to contest the decision.