EA Exam Prep Part 3: Appeals (Currently Unavailable)

Author: Eva Rosenberg

This is the eighth class of the EA Exam Prep Part 3 series. Successful appeals require a thorough understanding of both the law and the process. In this course, TaxMama® explains what happens during an appeal, how to prepare for one, and what to do if you’re unsuccessful. Re-examine information contained in the 30-day letter. Find out the first steps you should take, what to expect, and more. Learn about the Fast Track Settlement process, types of audit settings, written protests, small case requests, and other considerations. Find out when you can recover appeal costs and what to do if your efforts were not successful.

Publication Date: October 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about practicing before the IRS and more. Excellent training for staff working in tax offices, accounting practices, corporate settings, independent bookkeepers, and others who must proofread tax returns containing this information. Passing the EA exam, they will be able to pull client records and transcripts and relieve the tax preparers from routine tasks. This is more than just a basic course. This course provides an in-depth look at audit appeals. It is especially helpful to those with no hands-on experience with IRS audits and tax representation and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• One of the first things to do in an audit
• Obtaining client tax records
• The Fast Track Settlement process
• Exclusions from Fast Track Settlement
• Advantages to Fast Track Settlement
• The process for appeals
• Appeals letters
• The foundation for appeals
• The Appeals Judicial Approach and Culture program
• The good news about appeals
• Hobby loss issues
• Hobby loss case review
• Criteria to distinguish a hobby from a business activity
• Appeals Settlement Guidelines
• Appeal rights
• Appeals within the IRS
• Formal written protests
• Small case requests
• What to expect from the appeals process
• IRS responsibilities
• Taxpayer/Representative responsibilities
• Frequently asked questions about appeals
• Prohibition on requests to taxpayers to give up rights to bring civil action
• Discussion of Industrial Investors v Commissioner - TC Memo 2007-93
• Burden of Proof
• Use of statistical information
• Penalties
• Recovering costs associated with an audit
• Reasonable costs
• Timing of costs
• Net worth requirements
• Qualified offer rule
• Attorney fees
• Prevailing party
• Audit reconsiderations
• When the IRS accepts an audit reconsideration request
• Steps to take for an audit reconsideration request
• What to do if the IRS will not accept the audit reconsideration request
• When a case goes to the Tax Court
• Special circumstances
• Other options for appeals
• Form 4506, Request for Copy of Tax Return
• Form 4506-T, Request for Transcript of Tax Return
• Form 8821, Tax Information Authorization
• Form 14017, Application for Fast Track Settlement
• Publication 1660, Collection Appeal Rights
• Form 12203, Request for Appeals Review
• Form 12203-A, Request for Appeal

Learning Objectives

• Recognize the first steps to take when preparing for an audit
• Describe the appeals process
• Recognize taxpayer rights during appeals
• Identify when to use the Fast Track Settlement process
• Identify when to file a small case request
• Recognize criteria to recover costs associated with an appeal
• Describe audit reconsideration requests
• Identify other options for appeals
• Describe the various forms associated with appeals
• Recognize the hobby loss rules
• Identify what to do when all else fails

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None