Tax Controversy and IRS Defense Attorneys
Federal tax disputes from examination through Appeals, the notice of deficiency, and collection, including lien and levy hearings, payment arrangements, and penalties.
The IRS examines a return under 26 U.S.C. 7602 and generally must assess any additional tax within three years after the return was filed under 26 U.S.C. 6501(a). If the examiner proposes changes, a 30-day letter offers the chance to protest to the IRS Independent Office of Appeals, which 26 U.S.C. 7803(e) charges with resolving federal tax controversies without litigation. If the dispute is not resolved, a notice of deficiency under section 6212 starts the 90-day period in section 6213(a) for petitioning the United States Tax Court. In collection, sections 6320 and 6330 provide hearings, and sections 6159 and 7122 authorize installment agreements and compromises.
Industria Business Lawyers represents individual and business taxpayers in disputes with the IRS. If a matter needs Tax Court litigation or involves criminal tax exposure, we refer it to other counsel. Every provision cited on this page was read from the United States Code or IRS guidance. A consultation is free.
The Statutes That Govern a Federal Tax Dispute
Examination, taxpayer rights, the assessment deadline, Appeals, the Tax Court petition, and collection.
Examination Authority
Section 7602(a) authorizes the IRS, to ascertain the correctness of any return, make a return where none was made, or determine or collect a tax liability, to examine any books, papers, records, or other data that may be relevant or material, and to summon the taxpayer and others to produce records and testify under oath. Under section 7602(c), the IRS generally may not contact third parties about a taxpayer’s liability except during a period of not more than one year specified in a notice given to the taxpayer at least 45 days before that period begins, subject to listed exceptions.
Taxpayer Rights
Section 7803(a)(3) directs the Commissioner to ensure that IRS employees are familiar with and act in accord with taxpayer rights as afforded by other provisions of the Code, including the right to be informed, the right to quality service, the right to pay no more than the correct amount of tax, the right to challenge the position of the IRS and be heard, the right to appeal a decision of the IRS in an independent forum, the right to finality, the right to privacy, the right to confidentiality, the right to retain representation, and the right to a fair and just tax system.
The Assessment Deadline
Section 6501(a) generally requires tax to be assessed within three years after the return was filed. Under section 6501(c)(1) and (c)(3), tax may be assessed at any time for a false or fraudulent return filed with intent to evade tax, or where no return was filed. Under section 6501(e)(1)(A), the period is six years where the taxpayer omits from gross income an amount greater than 25 percent of the gross income stated in the return. Section 6501(c)(4) allows the period to be extended by a written agreement made before it expires, and the IRS must notify the taxpayer of the right to refuse the extension or limit it to particular issues or a particular period.
The Independent Office of Appeals
Section 7803(e) establishes the Internal Revenue Service Independent Office of Appeals and gives it the function of resolving federal tax controversies without litigation on a basis that is fair and impartial to both the Government and the taxpayer. Under section 7803(e)(4), the process is generally available to all taxpayers. If a taxpayer who has received a notice of deficiency is refused referral to Appeals, section 7803(e)(5) requires a written explanation and a procedure for protesting the denial.
Notice of Deficiency and Tax Court
Section 6212(a) authorizes the IRS to send a notice of deficiency by certified or registered mail. Under section 6213(a), the taxpayer may petition the Tax Court for a redetermination of the deficiency within 90 days after the notice is mailed, or 150 days if it is addressed to a person outside the United States. A petition filed by the last date the notice specifies is treated as timely. Subject to listed exceptions, section 6213(a) bars assessment and levy until the notice is mailed and that period expires or, if a petition is filed, the Tax Court’s decision becomes final.
Collection Due Process
Section 6320 requires written notice within five business days after a federal tax lien notice is filed, followed by a 30-day period to request a hearing. Except for the levies listed in section 6330(f), which are jeopardy levies, levies on state tax refunds, disqualified employment tax levies, and federal contractor levies, section 6330 bars a levy unless the IRS has given at least 30 days’ notice of the right to a hearing. Both hearings are held by the Independent Office of Appeals before an officer with no prior involvement with the unpaid tax. Under section 6330(c)(2), the taxpayer may raise spousal defenses, challenges to the appropriateness of collection, and alternatives such as an installment agreement or offer in compromise, and may contest the underlying liability only if the taxpayer did not receive a notice of deficiency for it or did not otherwise have an opportunity to dispute it. Section 6330(d)(1) allows a petition to the Tax Court within 30 days of the determination.
How a Tax Dispute Is Evaluated
Deadlines and options are identified before the IRS is answered.
Where the matter stands. A 30-day letter, a notice of deficiency, and a lien or levy notice each carry their own deadline, so the notice, tax years, and section 6501 period are identified first.
Agree or protest. IRS Publication 556 states that the taxpayer generally has 30 days from the date of the 30-day letter to accept or appeal the proposed changes. The IRS states that an Appeals conference requires a formal written protest unless the taxpayer qualifies for a Small Case Request, available where the proposed tax and penalty for each period is $25,000 or less, but not to employee plans, exempt organizations, S corporations, or partnerships.
Penalties. Section 6662(a) adds 20 percent of the portion of an underpayment attributable to listed causes, including negligence or disregard of rules or regulations and a substantial understatement of income tax, which section 6662(d)(1)(A) generally defines as one exceeding the greater of 10 percent of the tax required to be shown or $5,000. Section 6664(c) provides a reasonable cause and good faith exception, described below, which section 6664(c)(2) withholds in listed cases.
Paying over time. Section 6159(a) authorizes written installment agreements where the IRS determines an agreement will facilitate full or partial collection. Section 6159(c) requires the IRS to enter into one for an individual’s income tax liability of not more than $10,000, excluding interest and penalties, if the conditions it lists are met, including full payment within three years.
Compromise. Section 7122(a) authorizes the IRS to compromise any civil or criminal tax case before referral to the Department of Justice. Under section 7122(c)(1), a lump-sum offer, paid in five or fewer installments, must be accompanied by 20 percent of the amount offered, subject to the low-income exception in section 7122(c)(3).
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How We Handle an IRS Dispute
Notice, deadline, and tax years identified.
Returns and supporting documents assembled.
Requests answered and positions presented.
Formal written protest or Small Case Request prepared for Appeals.
The section 6213(a) period calendared when a notice of deficiency issues.
Hearings, installment agreements, and offers assessed.
Agreement and account transcripts confirmed.
FAQ
01 • Individuals and Businesses How long does the IRS have to assess additional tax?
Generally three years after the return was filed under section 6501(a). The period is six years for an omission of more than 25 percent of the gross income stated in the return, there is no limit for a fraudulent return filed with intent to evade tax or where no return was filed, and the period can be extended by written agreement.
02 • Individuals and Businesses What is a 30-day letter?
IRS Publication 556 describes it as the letter sent after an examination that notifies the taxpayer of the right to appeal the proposed changes within 30 days, together with the examination report and an agreement or waiver form. If the taxpayer does not respond, or later does not reach agreement with Appeals, the IRS sends a notice of deficiency.
03 • Individuals and Businesses What is the deadline to petition the Tax Court?
Under section 6213(a), 90 days after the notice of deficiency is mailed, or 150 days if the notice is addressed to a person outside the United States. A Saturday, Sunday, or legal holiday in the District of Columbia is not counted as the last day, and a petition filed by the last date specified in the notice is treated as timely.
04 • Individuals and Businesses Can I get a hearing before the IRS levies?
Except for the levies listed in section 6330(f), which are jeopardy levies, levies on state tax refunds, disqualified employment tax levies, and federal contractor levies, section 6330 requires written notice of the right to a hearing at least 30 days before the first levy. For those excepted levies, the hearing is offered within a reasonable time after the levy. Under section 6330(e)(1), a timely request generally suspends the levy actions at issue while the hearing and any appeal are pending.
05 • Individuals and Businesses Can a penalty be removed for reasonable cause?
Section 6664(c)(1) provides that no accuracy-related penalty under section 6662 is imposed on any portion of an underpayment if it is shown that there was a reasonable cause for that portion and that the taxpayer acted in good faith with respect to it. The exception does not apply to the transactions and disallowances listed in section 6664(c)(2).
Individuals and businesses with an IRS matter. Call (202) 860-1210 or describe the notice through the form. Free consultation. Every matter is evaluated against the Internal Revenue Code and IRS procedures in force.
This page provides general information about federal tax examinations, appeals, and collection and does not constitute legal advice or tax advice. Reading it does not create an attorney-client relationship with Industria Business Lawyers. Deadlines and options depend on the notice received, the facts, and the law in force. Provisions cited were read on September 28, 2026 from the United States Code at uscode.house.gov and IRS guidance at irs.gov, including IRS Publication 556 and the IRS page on preparing a request for Appeals.