Notification of an IRS Tax Examination

An individual will be contacted by mail or telephone as an official notification that a tax audit has been levied against their person or corporation. Integrated within this contact might be a list of the information required to reverse the tax audit and clear the individual or business from owing extra money, fines or fees.

IRS Tax Audits and How You Are Selected

Anytime a person or business records their tax returns, the information inputted in the essential fields are lined up with additional statements that fit the types as researched by the Internal Revenue Service. Once the return is reviewed by someone who is knowledgeable in the field of the return, the accountant will either endorse the filed return as is, or put it aside for a complete tax audit. If it is set aside, then a contact is made. There is also a random screening selection that will flag a return based only on a formula that is based on statistical information.Other ways to be flagged for a tax audit is when your return does not match what your boss reported, or vice versa. In extenuating situations, individuals or businesses can be audited as an outcome of their investors or business partners undergoing an IRS examination.

Acknowledging a Tax Audit

Acknoweledging an IRS audit can be as effortless as countering their demand by mail. Should the IRS include a request for citations in their notification, the countering party can merely produce the items requested and return them by mail. An IRS audit can also take place in person, by delivering the required 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 who responded to a tax audit have the right to be treated respectfully and professionally by the IRS, and are accredited with a right to confidentiality and privacy while giving tax information. Also, individuals have the right to know precisely what the requested documentation will be used for, and why they are being requested to submit it for verification. Lastly, everyone has the right to representation when handling with an IRS tax audit, as well as the right to appeal any outstanding disagreements with the IRS, or before a court, if needed.