How to Challenge Questionable IRS Investigation Tactics

Dealing with an IRS investigation can be stressful and intimidating. However, as a taxpayer, you have rights. If you feel the investigation tactics are questionable or abusive, there are ways to challenge them.

Know Your Rights

The first step is understanding your basic rights during an IRS investigation:

• You have the right to professional and courteous treatment by IRS employees.
• You have the right to privacy and confidentiality about the investigation.
• You have the right to representation by a tax professional or attorney.
• You have the right to record in-person interviews or phone calls with IRS agents (with advance notice).
• You have the right to appeal IRS decisions you disagree with.

Knowing your rights will help you identify when the IRS may be overstepping or using questionable tactics. Don’t be afraid to speak up!

Common Questionable Tactics

Some common questionable IRS tactics to watch out for include:

• Excessive document requests – Asking for documents unrelated to the investigation scope or timeframe.
• Threats or intimidation – Making threats about potential criminal charges or other consequences.
• Misleading statements – Telling you something that is untrue or exaggerated.
• Unnecessary delays – Taking longer than reasonable to provide information or make decisions.
• Lack of explanation – Not explaining the reasons for requests or decisions.
• Refusing representation – Saying you can’t have a tax pro or attorney present.

If you encounter any of these tactics, don’t hesitate to speak up and assert your rights.

Document Everything

If you want to challenge IRS tactics, it’s crucial to document all interactions and requests. Here’s how:

• Keep detailed notes about every conversation, including date, time, names, and details discussed.
• Make copies and keep records of all documents provided to the IRS.
• Follow up verbal conversations in writing to create a paper trail.
• Record in-person meetings or phone calls if possible (check laws first).

Thorough documentation will help support your case if you need to file a complaint or appeal a decision later on.

File an IRS Complaint

If you feel an IRS agent or office has used questionable tactics, you can file an official complaint with the IRS:

1. Submit Form 5177 Complaint Form detailing the inappropriate behavior.
2. Send copies of supporting documentation.
3. Include specific examples and details whenever possible.
4. Provide contact information so they can follow up with you.
5. Keep a copy for your records.

Complaints are reviewed by the IRS Complaints Office. They will contact you within 45 days to confirm receipt and provide an estimated resolution timeframe.

Request an Investigation

If an IRS attorney or agent has been particularly abusive, you can request an investigation into their specific conduct:

• File a complaint with the Treasury Inspector General for Tax Administration (TIGTA). They handle investigations into IRS employee misconduct.
• Contact your congressional representative’s office for help requesting a TIGTA investigation.
• Gather documentation of the inappropriate behavior to support the need for an investigation.

TIGTA will review the complaint and evidence before deciding whether to open an official investigation into the IRS employee’s conduct.

Appeal IRS Decisions

If you disagree with an IRS decision related to the investigation, you have the right to appeal. Here’s how:

1. Request a manager review if you disagree with an IRS finding or request.
2. Submit a formal appeal request if a manager does not resolve the issue.
3. Provide new information or evidence to support your appeal.
4. Highlight facts the IRS may have overlooked or misinterpreted.
5. Explain the hardship the decision would cause.

Keep making your case through every level of appeal possible. This creates a stronger record if you eventually need to take the issue to tax court.

Request a New Agent

If you have an ongoing issue with one specific IRS agent, you can request a new agent be assigned to your case. Here’s how:

• Submit the request in writing to the agent’s manager.
• Provide specific examples of behavior violating IRS rules or taxpayer rights.
• Explain how their conduct prevents fair and efficient case resolution.
• Request a new agent be appointed who can provide an impartial review.

If the manager declines your request, keep appealing up the chain of command until someone addresses the issue.

Hire Professional Help

Dealing with IRS investigations and appeals can be complex. Consider hiring a tax attorney or certified public accountant (CPA) to help protect your rights:

• A tax pro can handle interactions with the IRS on your behalf.
• They know how to navigate IRS processes and procedures.
• They can identify questionable tactics and advise you on responding.
• They can help formally document and submit complaints or appeals.

The right tax professional can relieve some of the stress of an IRS investigation and ensure your rights are protected.

Don’t Ignore IRS Inquiries

While you should not hesitate to challenge questionable IRS tactics, make sure you still respond to all official IRS letters and inquiries. Ignoring them can worsen the situation by:

• Triggering enforcement actions, like levies on your accounts.
• Leading to default judgements against you.
• Causing additional interest and penalties to accrue.
• Forfeiting your right to appeal.

Work with a professional to respond appropriately while also addressing any inappropriate behavior or decisions.

Stay Calm and Professional

When challenging IRS agents or appealing decisions, always remain calm and professional. Avoid emotional outbursts or heated arguments. This can undermine your credibility and make it easier for the IRS to dismiss your concerns.

Stick to the facts and document everything when asserting your rights. Following the proper procedures is more likely to elicit a fair review and positive response from the IRS.