Among the many notices issued by the IRS, Letter 970 holds particular significance for taxpayers engaged in a dispute with the agency. Issued by the IRS Independent Office of Appeals, this letter serves as formal notice that the taxpayer’s case has been assigned for review and that a conference opportunity is being offered to potentially resolve the matter without litigation.
Unlike deficiency notices or collection actions, Letter 970 is procedural in nature. It represents a taxpayer’s right to a fair, independent review, and is rooted in the IRS’s obligation to offer an impartial forum prior to judicial escalation. Understanding the function, structure, and implications of this correspondence is essential for any taxpayer pursuing administrative relief.
What is IRS Letter 970?
IRS Letter 970 is not an enforcement notice; rather, it is an administrative communication issued when a tax dispute has been elevated to the Office of Appeals. This may occur in two distinct contexts:
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- Non-Docketed Cases: Where the taxpayer has filed a timely protest following receipt of a statutory notice of deficiency or other adverse IRS determination.
- Docketed Cases: Where the taxpayer has filed a petition with the U.S. Tax Court and the IRS legal division has referred the matter to Appeals in hopes of achieving a pre-trial resolution.
In either context, the letter signals that the dispute is entering a quasi-adjudicative phase, guided by due process and fairness principles.
What does Letter 970 Contain?
The letter identifies the assigned Appeals Officer, outlines the date and format of the proposed conference (in-person, telephonic, or virtual), and provides guidelines for submitting supporting documents.
Importantly, it also instructs the taxpayer to confirm their participation and to advise whether they intend to appear personally or through authorized representation—such as a licensed attorney, CPA, or enrolled agent.
What Steps Should Be Taken?
Upon receipt of Letter 970, the taxpayer should act promptly. This includes:
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- Acknowledging the conference date and notifying Appeals of any scheduling conflicts.
- Preparing a concise written statement that addresses:
- Points of disagreement.
- Legal and factual basis for the taxpayer’s position.
- Supporting documentation (e.g., financial records, prior correspondence, legal citations).
- Evaluating the need for representation, especially in matters involving substantial tax liabilities, valuation disputes, or interpretation of complex code provisions.
A well-prepared submission and strategic engagement during the Appeals process can lead to a resolution that avoids further litigation, penalties, or prolonged uncertainty.
Relevance for Taxpayers
The issuance of Letter 970 presents a critical opportunity to resolve disputes before resorting to litigation. The IRS Appeals process is designed to be independent, with officers who are not involved in the original examination or determination. This separation ensures that the taxpayer receives a fresh, unbiased review.
For individuals, businesses, and tax professionals, understanding the procedural importance of Letter 970 is essential. Failure to respond appropriately could result in forfeiting the opportunity for administrative resolution and potentially complicating future litigation strategy.
We Can Help!
Letter 970 should be viewed not with alarm, but with strategic focus. It is a formal invitation to engage in a structured, fair process that prioritizes resolution over confrontation. Taxpayers are well-advised to treat this correspondence with the seriousness it deserves and to pursue every procedural safeguard it affords.
At JH Tax Law, our team can help you assert your rights effectively and even achieve favorable settlements without the burden of trial. Contact our office for a confidential consultation today!