If you do not agree you may use the TaxHelp Program to gather and send the IRS further information or legal analysis. Decide if you agree with the IRS explanations and their calculations. Look at the explanation pages to see what basis the IRS had for making their proposed determination. This form is very confusing because the calculations work backwards against the items on the return. If the IRS doesn’t accept some or all of your evidence they will eventually send you a Statement of Income Tax Changes ( Form 4549). Do not argue with your spouse, business partner or tax return preparer in front of the IRS. Don’t sit around chatting with the IRS and do not joke around with them.
If, however, the IRS asks you anything that you don’t know or don’t feel comfortable about, tell him or her that you’re not prepared and that more research is necessary. Have your evidence from the TaxHelp Program and be prepared. If you decide to meet with the IRS agent, be polite and withdrawn. So, if you get a Summons, this is serious and you should have an attorney represent you. The IRS can force you to come in by issuing you a Summons but this is rare. If you do not want to meet with the IRS face-to-face you can refuse, politely. They usually use Form 4564 to request information from you.
Use the TaxHelp program to collect your evidence and prepare your case. If ultimately, you and the IRS do not agree then you will either have to petition Tax Court, Appeal the decision within the IRS or pay the amount owed and file a claim for refund before suing the USA in US District Court.Ī notice from the IRS asking you to call to set an appointment & come into their office with your evidence is called an “office” audit. If the IRS doesn’t accept your evidence they will eventually send you a Statement of Income Tax Changes ( Form 4549). So, every month or so call the IRS at the number on the Notice and ask what the status is. The IRS should send you a letter at some point that they have either accepted, or rejected your arguments or that they request further information. The IRS may send you a letter that they received your evidence and ask you for time to consider it. Do not depend on them to timely respond to you. Send the documentation to the IRS by certified mail within the time periods requested by the IRS. Then use the TaxHelp program to prepare your case. Look carefully at the letter you received and determine which line of your return is in question. They usually use Form 566 and Form 886-A. Letter 566, Letter 2201A, Letter 2202, Letter 2205, Letter 2205A, or Letter 3572.Ī Notice from the IRS requesting that information be sent to them by mail is called a “letter” audit. Then, read the section below that applies to you. Find out from the letter you received which type of audit you are having. Thus, the 3 types of audits are called 1) “Letter Audit”, 2) “Office Audit”, and 3) “Field Audit”. You may be requested to respond to the IRS by letter, in their office, or in your office or home. The IRS will pry into your life, business and property with questions to you, your family, associates, customers and acquaintances. So, an “audit” is an investigation of you. The IRS also has a procedure for denying taxpayers the “ Earned Income Credit” and this is not an audit, either (although it could be a part of an audit). ( See also “ Math Errors” in TaxHelp’s IRS NoticeView section).
This is called a “ Math Error Adjustment” and the IRS uses Notices CP2000 and CP11 to request this information from you. The IRS can request information from you without officially “auditing” you. An Audit is an IRS investigation of you with requests for information.