IRS tries to avoid repetitive examination of the same item. If your return was examined for the same items in either of the two previous years and the examination resulted in no additional taxes you should contact the person whose name and telephone number are shown in the letter you received. The examination will be suspended pending a review of the files to determine whether it should proceed. If your return was selected by TCMP (Taxpayer Compliance Measurement Program), the examination will not be suspended.

If you agree with the findings, you will be asked to sign an agreement. By signing the form, you indicate you agree to the changes made to your return. If you owe any additional tax, you may pay it when you sign the agreement. If you do not pay the additional tax when you sign the agreement, you will receive a bill for the additional tax. Interest is charged on additional tax from due date of your return to billing date or to the date you pay. However you will not be billed for more than 30 days interest from the date you sign the agreement. No further interest or penalties will be charged if you pay within 10 days after billing date.

If the examination results in a refund IRS will pay interest at the applicable rate on the amount of the refund.


If you do not agree with the changes proposed by the examiner, the examiner will explain your appeal rights. This includes your immediate meeting with a supervisor to explain your position. If agreement is not reached at this meeting you will be sent:

  1. A letter notifying you of your right to appeal the proposed adjustment within 30 days.
  2. A copy of the examination report explaining the proposed adjustments.
  3. An agreement or waiver form.
  4. A copy of publication.
  5. Appeal Rights and preparation of Protests for UN agreed cases.


Most cases can be settled within the system without having to go to court. You may not use the appeals system if your reasons for disagreement do not come within the scope of tax laws.

If you do not want to appeal your case within the service you can take it to court. Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund, tell you how to appeal your



Article extracted from this publication >>  February 22, 1985