Form 12203: Request for Appeals Review

Form 12203, titled "Request for Appeals Review," is an official document provided by the Internal Revenue Service (IRS) that allows taxpayers to challenge certain tax-related decisions made by the IRS. It's a way to initiate a formal appeal process within the IRS's Independent Office of Appeals (Appeals).

What's the Purpose of Form 12203?

The primary purpose of Form 12203 is to request a review of proposed tax adjustments resulting from an IRS examination (audit) where the total amount in question (including tax, penalties, and interest) is $25,000 or less for a single tax year. This streamlined process, known as a Small Case request, offers an alternative to a more complex formal written protest typically used for larger tax discrepancies.

What Can You Appeal With Form 12203?

You can use Form 12203 to appeal proposed adjustments resulting from an IRS examination (audit) for a specific tax year. However, its use is limited to situations where the total amount of additional tax, penalties, and interest proposed by the IRS is $25,000 or less.

Who Should Use Form 12203?

Form 12203 is best suited for taxpayers who:

  • Disagree with proposed tax adjustments on their tax return from an IRS audit.
  • Believe the proposed adjustments are incorrect or unfair.
  • Have documentation to support their position.
  • Owe an additional tax amount (including penalties and interest) of $25,000 or less for the tax year in question.

When Should I Use Form 12203?

Use Form 12203 if you disagree with proposed tax adjustments on your tax return after an IRS examination, and the total disputed amount (tax, penalties, and interest) is $25,000 or less for a single tax year. You should receive the form along with the IRS letter outlining the proposed adjustments.

    What Happens After I File Form 12203?

    The Appeals Office will review your request and may contact you for additional information. You may be invited to attend an informal conference to discuss the disputed items. The Appeals Officer will then issue a written decision regarding your case.

    What if I Disagree with the Appeals Office Decision?

    If the Appeals Office decision is unfavorable, you may have further options to pursue, such as filing a petition with the Tax Court or seeking mediation. It's advisable to consult with a tax professional to discuss your specific situation and available options.

    What if I owe more than $25,000?

    If the proposed adjustments exceed $25,000, you cannot use Form 12203. You'll need to file a formal written protest following specific guidelines outlined by the IRS.