During their contact with taxpayers, IRS employees are required to explain and protect these taxpayer rights, including right to appeal. The IRS appeals system is for people who do not agree with results of an examination of their tax returns or other adjustments to their tax liability. In addition to examinations, you can appeal many other things, including:

1. Collection actions such as liens, levies, seizures, installment agreement terminations and rejected offers-in-compromise 2. Penalties and interest 3. Employment tax adjustments and trust fund recovery penalty

Internal IRS Appeal conferences are informal meetings. The local Appeals Office, which is independent of IRS office, can sometimes resolve an appeal by telephone or through correspondence.

Any payment that you receive from your IRA or qualified retirement plan before you reach age 59½ is normally called an “early” or “premature” distribution. As such, these funds are subject to an additional 10 percent tax. But there are a number of exceptions to age 59½ rule that you should investigate if you make such a withdrawal. Some of these exceptions apply only to IRAs, some only to qualified retirement plans, and some to both. IRS Publications 575, Pensions and Annuities, and 590, Individual Retirement Arrangements (IRAs), have details.

In addition to 10 percent tax on early distributions, you will add to your regular taxable income any distributions attributable to “elective deferrals” that you contributed from your pay, your employer’s contribution and any income earned on all contributions to account. If you made any nondeductible contributions, their portion of distribution is not taxed, since you’ve already paid tax on this amount.