Disagree with an IRS Notice? How to Appeal with Sample

Getting mail from the IRS is never fun — especially when it says you owe money or made a mistake.
But what if you’re sure the IRS got something wrong?

Maybe you:

• Already paid what they say you owe
• Reported income correctly but they think otherwise
• Were disqualified from a credit or deduction you believe you’re eligible for

You’re not stuck. You can dispute it.
This guide walks you through exactly how to respond if you disagree with an IRS notice, what your rights are, and how to avoid common mistakes.

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Step 1: Read the IRS Notice Carefully

Start by understanding what the notice says and why the IRS sent it. Look for:

• The notice number (top right corner — e.g., CP2000, CP49, CP12, CP14)
• The tax year involved
• The issue (underreported income, math correction, identity mismatch, etc.)
• The amount due or adjusted
• The response deadline (usually 30 days)

📌 Tip: Keep the envelope and notice for your records.

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Step 2: Check Your Own Tax Records

Compare the IRS info to your own return. Look for:

• Your original Form 1040
• W-2s, 1099s, brokerage statements
• Receipts or documentation for credits/deductions
• Any amended return (Form 1040-X)

Ask yourself:

Does the IRS have missing or incorrect data? Did a third party send them the wrong info?

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Step 3: Decide If You Fully or Partially Disagree

There are two ways to respond:

✅ If You Agree with the IRS

• Sign the response form
• Pay the balance (if required)
• No need to appeal

❌ If You Disagree (Fully or Partially)

• You can appeal or correct the IRS records
• You must respond in writing by the deadline

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Step 4: How to Respond If You Disagree

1. Check the response form attached to your IRS notice
2. Don’t sign the agreement form in the notice
3. Attach:
   • A written explanation of why you disagree
   • Supporting documents (copies of W-2s, corrected 1099s, receipts, etc.)
   • A copy of the original IRS notice
4. Mail it to the IRS address listed on your notice

✉️ Send by certified mail so you have proof of the date.

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Step 5: What If You Still Don’t Reach an Agreement?

If your written explanation doesn’t resolve the issue and the IRS insists you owe more, you can:

🧾 File a Formal Appeal

• Use IRS Form 12203: Request for Appeals Review
• File it within 30 days of the IRS notice
• Explain your position clearly
• You’ll get a chance to work with an Appeals Officer, separate from the collections department

📎 Download IRS.gov - Form12203 PDF

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How to Write a Clear, Professional Explanation Letter

Your explanation letter should:

• Be simple, polite, and fact-based
• Include relevant document references
• Be signed and dated
• Use IRS language where possible (e.g., “Form 1099-INT reported in error”)

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📝 Sample: Written Explanation of Why You Disagree

To Whom It May Concern:

I am writing in response to Notice CP2000 dated April 1, 2025, which proposes additional tax based on unreported income from a Form 1099-INT issued by ABC Bank.

I respectfully disagree with this proposed change. The 1099-INT in question was issued in error, as the interest amount shown was reported twice — once by ABC Bank and once through a broker statement that consolidated the same amount.

I have attached copies of both the original 1099-INT and the broker’s year-end statement, highlighting the duplicate entry. My original return accurately reflected the correct amount of interest earned.

I request that you review the attached documentation and reconsider the proposed adjustment.

Please feel free to contact me at the phone number or email listed below if any further information is required.

Thank you for your attention to this matter.

Sincerely,
Total Finance Hub (Your Name)
SSN: XXX-XX-1234
Phone: (123) 456-7890
Email: totalfinancehub@gmail.com (Your E-mail)
Date: April 20, 2025

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Alternative: Request a Transcript to Double-Check

Sometimes the IRS misapplies a payment or loses data. You can request your tax account transcript at:

or

This shows:

• What the IRS recorded for your income, payments, and credits
• If your tax return was processed properly

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Know Your Rights: The Taxpayer Bill of Rights

You have the right to:

• Challenge the IRS’s position
• Appeal in an independent forum
• Pay only what you actually owe
• Be informed and treated with respect

🧾 See Taxpayer Bill of Rights

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Related Posts

• IRS CP2000 Notice: What It Means, Why You Got It?
• 5071C, 4883C, 5747C: IRS Identity Theft Victim?
• Tax Refund Smaller Than Expected? What to Do Next

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Final Tips to Handle IRS Disagreements

• Don’t panic — IRS mistakes happen
• Always respond in writing and keep copies
• Don’t miss the deadline
• Get help from a tax professional if needed

Disagreeing with the IRS doesn’t make you a bad taxpayer — it just means you’re protecting your rights.
With the right steps, you can fix the problem and move on.