A person or corporation will be contacted by phone or mail an IRS tax audit is beginning for endorsement on their behalf. Within this notification will be an outline of the return information that will need to be verified to close the audit.
How is Someone Chosen for an IRS Audit?
Anytime a person or business records their tax returns, the data inputted in the required fields are lined up with other statements that fit the categories as determined by the Internal Revenue Service. Once the return is looked at by someone who is qualified in the field of the return, the accountant will either approve the filed return as is, or place it aside for a full tax audit. If it is set aside, then a contact is created. In addition, a varying lottery pick may choose a return because it meets a statistical formula.Other ways to be flagged for an IRS tax audit is when your return does not match what your boss reported, or vice versa. Obvious signs of red flags on a business partner or investors' return might also induce an individual or business being audited as well.
Responding to an IRS Examination
Acknoweledging an IRS audit can be as effortless as countering their request by mail. If the IRS presents an individual with a catalog of items needed to clear the tax audit from contest, the tax payer can simply make copies of this information and present it to the IRS via mail. An IRS audit can also take place in person, by delivering the necessary documentation to your local IRS office, or at your place of business, by inviting an IRS agent onto the location to look at your information on site.
Tax Payer Rights
People who replied 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 paperwork, and the right to know how they will use that information once received. In addition, each individual has the right to have a third party representative manage the audit, and the right to appeal any disagreements put forth by the organization, even in a court of law.
