IRS Form 12509 “Condition of Disagreement” Explained

IRS Form 12509, also known as the “Condition of Disagreement,” is a document used by taxpayers to appeal certain decisions made by the Internal Revenue Service (IRS) regarding their tax liability. This form is used to request a review of an IRS decision by an independent appeals officer, who will review the taxpayer’s case and make a determination on the dispute.

The first step in the appeals process is for the taxpayer to receive a letter from the IRS outlining the specific issue in question and the proposed resolution. The taxpayer then has 30 days from the date of the letter to submit Form 12509. The form must accompany a statement outlining the taxpayer’s position on the matter and any supporting documentation.

The appeals officer will then review the case and make a determination based on the evidence provided. If the appeals officer agrees with the taxpayer’s position, the IRS will take the necessary steps to correct the issue. If the appeals officer disagrees with the taxpayer’s position, the taxpayer can take their case to the United States Tax Court.

One of the key requirements for Form 12509 is that the taxpayer must have already attempted to resolve the dispute through the IRS’s administrative process. This includes participating in the IRS’s examination or collection process, such as submitting a protest or requesting a hearing.

Internal Revenue Code cites that apply to this form are:

  • IRC 6213(a) which states that the taxpayer has the right to file a petition with the Tax Court within 90 days of the date of the notice of deficiency if the taxpayer does not agree with the deficiency determined by the Commissioner.
  • IRC 6320 and 6330 which govern the collection due process hearing rights for taxpayers when the IRS files a Notice of Federal Tax Lien or issues a levy.
  • IRC 6159 governs the installment agreement request and taxpayers’ rights to request the termination of the installment agreement.

It’s important to note that IRS Form 12509 should not be used to dispute a tax liability that is not yet due or has not yet been assessed by the IRS. In such cases, the taxpayer should consider other options such as filing an amended return or seeking professional tax advice.

It’s also important to note that Form 12509 is not the only way to appeal an IRS decision. Taxpayers may also request an appeals conference, an informal meeting between the taxpayer and an appeals officer to discuss the dispute. This option is generally recommended for less complex cases or cases where the taxpayer and the IRS can agree on the dispute without needing a formal hearing.

In conclusion, IRS Form 12509 is an essential tool for taxpayers who wish to dispute certain decisions made by the IRS. It is important to understand the process, the requirements for submitting the form, and the taxpayer’s rights and options throughout the appeals process. Taxpayers should also consider seeking professional tax advice before submitting the form to ensure they take the appropriate steps to resolve their dispute.

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