Dealing With IRS Auditors

An IRS audit is the taxpayer's biggest fear. You will begin to question if you did your taxes correctly, even if you did them honestly. The idea of penalties, levies, and even jail come to mind. But be aware that you are safeguarded by laws during an Internal Revenue Service audit before you worry.

The third installment of the Taxpayer Bill of Rights (TaBOR) was passed in 1998 after numerous Americans lobbied Congress regarding the abusive behavior of IRS agents. With this bill, the IRS are required to truthfully tell taxpayers of their rights and what kind of action they can expect from the IRS.

Many people would think that the audit is a formal meeting between the taxpayer and the IRS auditor. However, more typical than not, audits are conducted through the post. The IRS serves the taxpayer notices relating to claims in their tax returns, often asking for additional documentation. These are often resolved speedily if you maintained organized records.

They IRS may want to examine the full return or a part of it. But if the IRS auditor asks to look at just a small part of your tax return, make sure that you provide only that part and nothing more. Well-meaning taxpayers who've sent a lot more documentation than was asked have sometimes encouraged IRS auditors to decide to assess a wider scope of the tax return than they intended. Offering them too much information encourages them to get more curious, and they'll request for even more documentation. You do not wish this to occur.

Also, most people are obviously not tax lawyers or in any way fit to deal with handling an IRS agent alone. In a meeting with the IRS, it is best to bring a qualified tax professional like a CPA or tax attorney. Contact the actual professional who prepared your tax return if you used an accountant or tax service. They can assist in penning a reply to the auditor and may understand the particular problems related to your return.

The IRS examiner informs you about your tax return's found irregularities when the audit finishes. Then they'll officially notify you, the taxpayer, of any financial adjustments that have to be made like paying more money to the IRS in the form of debt or fines. In very rare situations, some taxpayers have even gotten refunds after an audit. Obviously, you should probably not depend on this occurring with your tax audit and IRS issues.

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