subject: What To Do During An Irs Tax Examination [print this page] Notification of an IRS Tax Examination Notification of an IRS Tax Examination
A person or corporation will be notified by phone or mail an IRS tax audit is beginning for authentication on their behalf. Within this notification will be specificantions of the return information that will need to be verified to finish the audit.
IRS Tax Audits and How You Are Chosen
Anytime a person or corporation records their tax returns, the data submitted in the essential fields are lined up with additional statements that fit the categories as determined by the IRS. Once the return is looked at by someone who is knowledgeable in the field of the return, the accountant will either approve the filed return as is, or place it aside for a full tax examination. Should it be rejected for clearance, the initial phase of verification needs are made. There is also a random screening selection that will flag a return based exclusively on a formula that is based on statistical information.Another tax audit inducer is when papers do not match, such as W-2s or 1099s. In extenuating circumstances, individuals or businesses can be audited as an outcome of their investors or business partners undergoing an IRS audit.
Responding to an IRS Examination
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 articles requested and return them by mail. An IRS audit can also be countered by returning the requested resources to a local IRS office, or by scheduling a meeting with an IRS agent at your company's physical location, enabling all paperwork to be seen at once.
Tax Payer Rights
Individuals have the right to be handled politely and professionally by all IRS agents, and are permitted a right to privacy and confidentiality when dealing with tax issues. Also, people have the right to know exactly what the requested documentation will be used for, and why they are being required to submit it for verification. Furthermore, each person has the right to have a third party representative watch over the audit, and the right to appeal any disagreements put forth by the organization, even in a court of law.
