How to Fight an IRS Estate Tax Audit (Step-by-Step Guide) | Joel Crouch

What happens if the IRS audits an estate?

Estate tax audits can feel intimidating—but there’s a clear process and multiple levels where issues can be resolved before it reaches court.

Here’s how the estate tax audit defense works, step by step:

📝 Step 1: IRS Exam Division
You’ll first be contacted by an IRS examiner. They’ll issue an Information Document Request (IDR) asking for valuation reports, tax returns, supporting appraisals, and other estate documentation.

👉 Pro tip: Respond promptly and stay organized. The faster and cleaner your documentation, the better your chances of resolution at this stage.

⚖️ Step 2: IRS Appeals
If you can’t resolve the audit directly with the examiner, your case can be elevated to the IRS Appeals Division.

Appeals officers are neutral reviewers focused on settling cases, not escalating them. This is where many disagreements are resolved—especially when tax positions are supported by strong legal and appraisal standards.

🏛️ Step 3: U.S. Tax Court or Federal District Court
If appeals fails, you can escalate your case to U.S. Tax Court (no prepayment required) or, if seeking a refund after paying, Federal District Court.

Most families never get to this step—strong legal representation and early cooperation often resolve things long before court.

💡 The takeaway? If your estate is audited, you’re not stuck. You’ve got options, advocates, and a clear path to resolution.

WANT TO REACH OUT TO GUEST JOEL CROUCH?
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📧 Email: jcrouch@meadowscollier.com
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