A formal way to challenge an IRS decision without going straight to court, usually by asking the IRS Independent Office of Appeals to review a proposed tax assessment, penalty, collection action, or other dispute.

The process is meant to give taxpayers a separate review by an office that is not supposed to be influenced by the audit or collection team that made the original decision. It often begins after the IRS sends a notice explaining your appeal rights, such as a 30-day letter following an audit. A person or business may submit a written protest, provide records, and argue that the IRS got the facts or the law wrong. Appeals can involve audits, penalties, tax liens, levies, installment agreements, or offers in compromise. If the matter is not resolved there, the next step may be the U.S. Tax Court or another federal court, depending on the case.

In practical terms, the IRS appeals process can reduce a tax bill, remove penalties, delay aggressive collection, or create room for a settlement. Deadlines matter. For example, a taxpayer generally has 30 days to request Appeals review after certain audit notices, and a Collection Due Process hearing request usually must be made within 30 days of a levy or lien notice under federal tax procedure.

For someone handling an injury claim, unresolved tax disputes can complicate settlement planning, refund offsets, and overall financial stability while recovery is already demanding.