subject: What To Do During An Irs Tax Audit [print this page] Notification of an IRS Tax Examination Notification of an IRS Tax Examination
An individual will be contacted via mail or telephone as an official notification that an IRS audit has been levied against their person or corporation. Included in this contact may be a list of the information required to reverse the tax audit and clear the person or business from owing extra money, fines or fees.
How is One Selected for an IRS Tax Audit?
When an individual or association files their taxes, the line items documented are compared against other returns in those categories, industries or income brackets based on statistical information that has been collected over the being of the Internal Revenue Service. As soon as the return is looked at by someone who is experienced in the field of the return, the accountant will either approve the filed return as is, or set it aside for a complete tax audit. Should it be rejected for clearance, the initial stage of verification needs are made. In addition, a chance lottery pick may choose a return because it meets a statistical formula.An additional tax examination inducer is when documents do not match, such as W-2s or 1099s. Overt signs of red flags on a business accomplice or investors' return might also induce an individual or business being audited as well.
Recognizing a Tax Audit
Acknoweledging an IRS audit can be as easy as countering their demand by mail. Should the IRS include a request for citations in their notification, the countering party can easily produce the articles asked for and restore them by mail. An IRS tax 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 look at your information on site.
Tax Payer Rights
People who responded to an IRS 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. Furthermore, they have the right to know why the IRS is asking for the information, and the right to know how they will use that information once obtained. Additionally, each individual has the right to have a third party representative oversee the audit, and the right to appeal any disagreements put forth by the agency, even in a court of law.
