When you get audited by the IRS, you face two options: to accept or challenge the results of the IRS audit process. There’s the provision for apply for audit reconsideration when you’re disputing the tax IRS says you owe. Your audit with the IRS is reviewed when your application is successful. As you engage an accountant for guidance on how to proceed with an IRS audit reconsideration application, below are some tips to help do it the right way:
Factors Under Which an IRS Audit May be Abated
The IRS is authorized to withdraw all or part of its assessment if certain conditions are found to be true after your audit has been revisited. A case in point is when the tax that an evaluation claims you owe exceeds the right tax obligation, in which case, correction is mandatory. Another situation is if the evaluation was completed after the expiration of the duration of limitation that applies. When the evaluation is marred with errors or illegalities, relief is also possible.
However, you may expect no IRS audit reconsideration after you’ve already committed to deal to pay the amount owed, for instance a closing agreement or offer in compromise. Likewise, expect no tax audit reconsideration in case the U.S Tax Court or another court has already delivered a final determination about your tax obligation.
Prerequisites for Sending an IRS Audit Reconsideration Application
There are conditions that a tax payer has to meet before sending their request for a review of their IRS audit. Firstly, you need to file returns for the tax year in question. And if available, send a copy of the audit report too. It’s also significant to set forth the alterations meant for revisiting. Don’t forget to include a memorandum detailing the relevant facts and laws that apply. Visit this website at https://en.wikipedia.org/wiki/Income_tax_audit and know more about income tax audit.
As you proceed, just know that audit reconsideration is not a legally guaranteed right to the tax payer, rather, it’s accepted totally at the discretion of the tax authority. In your application, you must give your position on the basis of the law while providing relevant evidence. The implications following an audit reconsideration request may not turn out as anticipated without sufficient facts to back your claims. Normally, the IRS hold ups any collection activity after it has received an audit reconsideration request, although it does not have to do this under the law.
Send a request for the re-assessment of your IRS audit cpa if other options, including filing a petition, are not viable. The whole audit reconsideration package should be prepared and delivered in the exact form as an Appeals notebook.
So, get professional help with the filing of an IRS audit reconsideration request to stand a better chance. Know if you get audited by irs what happens here!