IRS Audit Notifications

A person or company will be notified by phone or mail that a tax audit is beginning for endorsement on their behalf. Included in this contact might be a list of the information necessary to repeal the audit and clear the person or corporation from owing extra money, fines or fees.

IRS Audits and How You Are Chosen

When an individual or organization records their taxes, the line items reported are compared to other returns in those categories, industries or income brackets based on statistical information that has been collected over the life of the Internal Revenue Service. Once the return is reviewed by someone who is knowledgeable in the field of the return, the accountant will either approve the filed return as is, or set it aside for a full tax audit. If it is set aside, then a contact is created. There is also a random screening selection that will mark a return based only on a formula that is based on statistical information.Other ways to be marked for an IRS tax audit is when your return does not match what your boss reported, or vice versa. In extenuating situations, individuals or organisations can be audited as a result of their investors or business partners undergoing an IRS audit.

Recognizing an IRS Audit

Acknoweledging an IRS tax audit can be as easy as countering their request by mail. If the IRS presents an individual with a catalog of items needed to clear the tax examination from deliberation, the tax payer can merely create copies of this information and submit it to the IRS via mail. An IRS audit can also take place in person, by delivering the necessary documentation to your regional IRS office, or at your place of business, by inviting an IRS agent onto the premises to appraise your paperwork on site.

Your Rights as a Tax Payer

People have the right to be handled courteously and professionally by all IRS agents, and are permitted a right to privacy and confidentiality when dealing with tax problems. In addition, they have the right to know why the IRS is asking for the paperwork, and the right to know how they will use that information once received. Lastly, everyone has the right to representation when dealing with an IRS tax audit, as well as the right to fight any outstanding disagreements with the IRS, or before a court, if necessary.