How to Handle Tax Disputes?

The experience of a tax trial against the IRS may be quite stressful and complicated. Luckily there are methods like Padgett Advisors that can keep you informed on what to do and where to go to sort out the recovery process. This article will be of great help to you because it will serve as a guide through the process and offer pretty much all the necessary knowledge to help you out in the mobile hunt.

What is a Tax Dispute?

Tax dispute is a situation where the IRS and an individual/organization have a disagreement of matters concerning taxes. This could involve:

  • Tax deficiency: It also alleges that you under-reported tax than it expects you to pay.
  • Tax penalty: The IRS has a mandate in terms of a penalty to be imposed on late filing, underpayment, or other violations.
  • Denial of refund: It refuses to return your payment as tax refund.
  • Disagreement on deductions or credits: There are IRS audits that pertain to the deduction or credits that you made on the right return.

Should I involve myself in this case?

It is a range of tax dispute resolution rather than entirely dependable on your alone. Consider these factors:

  • Complexity of the issue:  Determine whether the dispute hinges on simple concepts or deals with more complex tax laws.
  • Amount of money involved:  It would make sense to seek professional help if the personal tax burden is too high.
  • Your comfort level:  Are you able to tackle tax updates and provisions in the right manner?

How do I Want to Resolve it?

Depending on the nature of the dispute, you have several avenues for resolution:

  • Informal Conference: You can ask for a face-to-face meeting with an IRS representative and consult them about the situation. This can be used to correct mistakes or explain apparent cancellations due to minor technical issues.
  • Mediation: It is a process in which your interaction with the IRS and the negotiation of a fair settlement with the agency are governed by an unbiased third party. This can be a cheaper but swifter form of due process.
  • Appeals Process: You can contest the issue through formal application to appeal against the decision of the IRS through several ways depending on the level of the dispute. It consists of the filing of certain documents and in certain cases even having court appearances.
  • Tax Court: In cases where all other forms of appeals fail, taxpayers can appeal to the Tax Court, a judicial body which is free from interference, to hear their case.


Knowing what you face and taking control of the situation can also minimize the possibility of a dispute with the IRS in the first place. But even so, complex situations or bigger financial concerns might require that one seek professional assistance from an accountant or a tax preparer.