Who Can Help at the IRS Problem Resolution Office?

Tax issues with the IRS can be stressful, especially when they lead to delays, penalties, or unclear resolutions. For taxpayers struggling to resolve problems through standard channels, the IRS Problem Resolution Office may offer assistance in certain cases.

Understanding who qualifies for help and how the process works is key to determining if this resource is right for you.

Qualifying for Assistance

The IRS Problem Resolution Office assists taxpayers when standard processes fail. If reasonable efforts to resolve an issue have led to continued delays, errors, or a lack of response, assistance may be available. This includes cases where IRS mistakes, such as processing errors or misapplied payments, cause financial hardship.

Eligibility is often based on whether the issue meets the IRS definition of significant hardship under Section 7811 of the Internal Revenue Code. This can include an immediate threat of adverse action, such as a levy or lien, or prolonged delays that create financial strain. For example, if a refund is delayed for months due to an IRS error, intervention may be possible. Similarly, if a payment is applied to the wrong tax year, leading to penalties, the office may correct the mistake.

Small business owners dealing with payroll tax disputes or individuals facing tax-related identity theft may also qualify. The IRS considers whether normal resolution channels have been exhausted and if expedited handling is necessary. If a case does not meet these standards, the taxpayer may be referred elsewhere.

Scope of Cases

The IRS Problem Resolution Office handles cases involving systemic issues or administrative errors that leave tax problems unresolved. One common scenario is incorrect tax account adjustments, where an IRS processing error leads to a miscalculated balance. For example, if an amended return results in an incorrect tax assessment and unwarranted penalties, intervention may be warranted.

Another focus is tax credits and deductions that have been improperly denied. Taxpayers eligible for credits like the Earned Income Tax Credit (EITC) or Child Tax Credit (CTC) may receive assistance when claims are rejected due to IRS misinterpretations or documentation errors. This is especially relevant when automated IRS systems incorrectly flag a return, delaying refunds.

Cases involving IRS collection actions may also qualify, particularly when a taxpayer with an installment agreement or Offer in Compromise (OIC) continues to receive collection notices. If the IRS misapplies payments or erroneously issues a levy despite an active payment plan, the Problem Resolution Office may step in.

Submitting a Request

To request assistance, taxpayers must file Form 911, Request for Taxpayer Advocate Service Assistance. This form should include details about the issue, previous resolution attempts, and any financial hardships caused by the delay or error. A clear explanation improves the chances of prioritization.

Form 911 can be submitted by fax or mail to the local Taxpayer Advocate Service (TAS) office, which operates independently within the IRS. In urgent cases, visiting a local IRS office may expedite the process. Taxpayers can also call the Taxpayer Advocate Service’s toll-free number, though written submissions create a stronger record.

Information to Gather

Before submitting a request, taxpayers should compile supporting documents to strengthen their case. The IRS relies on documentation, so detailed proof increases the likelihood of resolution. This includes copies of relevant tax returns and any IRS notices related to the issue. If discrepancies involve IRS adjustments, obtaining account transcripts through the IRS’s online portal or via Form 4506-T can clarify processing errors.

Financial records help demonstrate hardship or the impact of an IRS mistake. Bank statements, payroll records, or business financial statements can illustrate financial consequences. For example, if an IRS action caused a lien or levy that disrupted cash flow, evidence of missed mortgage payments or business income declines strengthens the case. In penalty disputes, documentation showing prior timely payments or proof of IRS miscalculations can be critical.

Potential Timeline

The time required to resolve a case depends on complexity and IRS workload. Simple cases, such as correcting a misapplied payment, may take a few weeks. More complex issues, like disputes over tax credits or identity theft-related problems, can take months.

After submitting a request, taxpayers typically receive an initial response within 30 days acknowledging receipt and outlining next steps. If additional documentation is needed, delays can occur, especially if the IRS must retrieve archived records or coordinate with multiple departments. Cases involving financial hardship or imminent enforcement actions may be expedited, but even urgent cases can take several weeks. Regular follow-ups help ensure progress.

Communication Channels

Staying in contact with the IRS Problem Resolution Office is important for tracking progress and addressing any additional requirements. The Taxpayer Advocate Service assigns an advocate to each case, serving as the main point of contact.

Phone calls are often the fastest way to communicate, but response times vary. Taxpayers should document all conversations, including the names of IRS representatives spoken to and any case reference numbers provided. Written correspondence, whether via fax or mail, helps maintain a record of submitted documents and official responses. In-person visits to a local IRS office may be useful for urgent cases, particularly if immediate intervention is needed to prevent enforcement actions.

Possible Outcomes

Resolutions depend on the nature of the issue and the findings of the IRS Problem Resolution Office. If an error is identified, the IRS may adjust the taxpayer’s account, issue a corrected refund, or remove wrongly applied penalties and interest. If a dispute involves a denied tax credit or deduction, the IRS may request further documentation before making a final determination.

Not all cases result in a favorable outcome. If the IRS upholds its original position, the taxpayer may need to explore options such as filing an appeal or seeking relief through the U.S. Tax Court. In some instances, the IRS may offer partial relief, such as reducing penalties while maintaining the underlying tax liability. Understanding the possible outcomes helps taxpayers prepare for next steps, whether that means accepting the resolution or pursuing further action.