Form 12203, also known as the Request for Appeals Review, is a document that taxpayers can use to initiate an administrative appeal with the Internal Revenue Service (IRS). This form is typically required in the following situations:
1. Disputed Tax Liability: If you disagree with the IRS's assessment of your tax liability, you can complete Form 12203 to request an appeals review. This includes cases where the IRS has issued a notice of deficiency, disallowed a claim for refund, or made any adjustments to your tax return.
2. Collection Actions: If the IRS has started enforcement actions to collect unpaid taxes, such as issuing tax liens, levies, or wage garnishments, you may file Form 12203 to request an appeals review. This form allows you to challenge the collection actions and explore potential alternatives like installment agreements or offers in compromise.
3. Penalty Disputes: If you've received a penalty notice from the IRS for late filing, underpayment, or any other non-compliance issue, completing Form 12203 can start the appeals process. This allows you to present your case, provide any relevant supporting documentation, and request a penalty reduction or abatement.
4. Denied Tax Benefits: If the IRS denies your claim for certain tax benefits, such as the Earned Income Tax Credit (EITC) or Child Tax Credit, you can use Form 12203 to request an appeals review. This provides an opportunity to present additional information or clarify any misunderstandings relevant to your eligibility for these credits.
5. Innocent Spouse Relief Claims: When seeking relief from joint tax liabilities due to an understatement or erroneous items reported by your spouse, filing Form 12203 is necessary. It initiates the appeals process and allows you to present your case separately from your spouse, explaining why you should not be held responsible for the tax debt.
Remember, it is crucial to carefully complete Form 12203, providing accurate and thorough information along with supporting documentation. Working with a tax professional or seeking legal advice can help navigate the appeals process and maximize your chances of a favorable outcome.