USTC SETTLEMENT AND APPEALS
If you receive a USTC Notice of Determination indicating that you owe additional taxes or fees, take careful note of the issue date. You have 30 days from the date of the notice of determination to file an appeal. You file can request an appeal by filing a petition for redetermination. If you do not pay the proposed tax liability or file an appeal by the 30-day deadline, you will be assessed a penalty equal to ten percent of the unpaid taxes or fees due. There are several steps involved in the appeals process. In some cases, an appeal can be referred back to a prior step. Thus, you may go through some of the steps in the appeals process more than once.
After you file your petition for redetermination, your case can go to the settlement division. In the settlement division, the settlement officer typically will review your arguments for why and how the auditor made mistakes at arriving the proposed tax assessment. The settlement officer will review your arguments and any documentation you have provided. After reviewing the matter, the USTC settlement officer will propose a percentage reduction to the proposed liability. If you accepted this proposal, you generally must pay a 25% down payment toward the tax assessment and then pay the remaining amount within two years.
If you ask to skip the settlement process or fail to reach an agreement with the settlement division, you appeal will be referred back to the appeals division. Eventually an appeals officer will review your case, including your arguments and any documents provided to substantiate your position. An appeals officer has a wider degree of authority to settle issues and can even remove entire portions or all of the assessment. If you fail to reach an agreement with the appeals officer, your case will be transferred back to settlement.
Contact an USTC Tax Attorney
If you have received a notice from the USTC, contact an USTC tax attorney at Tax Defense Counsel for a free consultation.