Protest Audit ResultsDepending on what stage of the audit you’re in, you have certain options to contest tax assessments that you disagree with.
Option 1: Reconciliation Conference
Dispute contested assessments by requesting a reconciliation conference during the field audit. This conference is an informal meeting with the auditor supervisor and their manager to discuss and resolve disagreements. This meeting, if well prepared for, can often result in a favorable outcome.
Option 2: Independent Audit Review Conference (IARC)
If disputed issues remain after the reconciliation conference, you can request an Independent Audit Review Conference (IARC). An IARC allows businesses to address their disputes with an unbiased third party called the Independent Audit Reviewer (IAR). Although the IAR does not work directly for a Comptroller office that conducts audits, they still work for the Comptroller. Texas Tax Group (TTG) will request an IARC during the field audit to reserve your right to an IARC. The IAR will conduct the meeting, and each side (auditor and consultant) will provide contentions. Preparation, research, and presentation is the key to achieving success at an IARC. The Dispute Office will then make a written determination within 30 to 60 days. If TTG disagrees with the decision, a more formal Administrative Hearing may be requested after the tax bill is issued.
Option 3: Redetermination (Administrative) Hearing
After a final tax bill is issued, your last opportunity to address disputes before the liability is due is to request a redetermination hearing. The deadline to request a redetermination hearing is usually within 20 to 60 days of the date of Notification of Audit Results (NOAR). The redetermination hearing is a time-consuming, complicated, and often risky process.
Option 4: Refund Hearing
If you miss the deadline to request a redetermination hearing, your only other option to protest your audit results is a refund hearing. However, you must pay your audit liability, penalties, and interest before a refund hearing is granted.
Why Texas Tax Group
- TTG’s team of former Texas Comptroller State Tax Auditors, Supervisors, Policy Experts, and other state tax professionals have over 400 years of combined agency experience.
- TTG has prepared for and/or attended over 75 IARCs since 2007 and has had conferences with all three Dispute Conference Officers. We’ve met personally with current and past IARC Agency Directors to discuss procedural concerns.
- The TTG team has been involved in over 5,000 field audits, redetermination hearings, and refund requests