subject: How To Contest An Irs Tax Audit [print this page] IRS Tax Audit Notifications IRS Tax Audit Notifications
A person or corporation will be contacted by phone or mail that a tax audit is commencing for endorsement on their behalf. Included in this contact may be a listing of the information necessary to repeal the examination and clear the person or company from owing additional money, fines or fees.
How is Someone Chosen for a Tax Audit?
Anytime a person or corporation records their tax returns, the data inputted in the essential fields are lined up with additional statements that fit the categories as researched by the IRS. As soon as the return is reviewed by someone who is qualified in the field of the return, the accountant will either endorse the filed return as is, or place it aside for a full tax audit. If it is set aside, then a contact is made. In addition, a chance lottery pick may choose a return because it meets a statistical formula.Another tax examination inducer is when documents do not match, such as W-2s or 1099s. Blatant signs of red flags on a business accomplice or investors' return could also induce an individual or business being audited as well.
Responding to an IRS Audit
Acknoweledging an IRS tax audit can be as easy as countering their request by mail. Should the IRS include a demand for citations in their notification, the countering party can simply supply the items asked for and return them by mail. An IRS audit can also take place in person, by delivering the vital documentation to your regional IRS office, or at your place of business, by inviting an IRS agent onto the premises to review your information on site.
Tax Payer Rights
People who responded to an audit have the right to be treated courteously and professionally by the IRS, and are accredited with a right to confidentiality and privacy while providing tax information. Also, people have the right to know exactly what the requested documentation will be used for, and why they are being required to present 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 necessary.
