Many people, especially business owners, get a chill when you mention the IRS, even worse when you mention the words “ IRS auditor”. Even people that complete their tax forms accurately and keep extremely strict records begin to second-guess themselves, wondering if everything is just as it should be. After all, the stigma associated with an IRS audit leads people to think they’ve done something wrong. Plus, over the years, IRS tax auditors have gained a somewhat notorious reputation for being extremely crass and often very unpleasant individuals. This shouldn’t be the case any longer, however.
Your Rights in an IRS Audit
The Taxpayer Bill of Rights, or TABOR, is an act passed by the IRS.
- This act was conceived after a multitude of different grievances was received by Congress regarding the often abusive behavior observed by taxpayers when dealing with IRS auditors.
- The act itself protects taxpayers by guaranteeing that, if they have a grievance with their assigned auditor, the issue will be handled swiftly to ensure an efficient audit process.
- It also states that the IRS must inform the taxpayer being audited of every action being taken, and also inform them of their rights under the TABOR act.
The Audit Process
When most people think of the word “audit”, they envision an auditor in a tan trench coat coming into their home or place of business and counting everything they own and rifling through check stub boxes with a calculator. In most cases this simply doesn’t happen. Typically, audits are completed over sent paperwork. Taxpayers receive a letter from the IRS stating they need to see specific documentation for specific claims regarding that specific tax return. If the taxpayer has kept strict records regarding tax payments and claimed items, these issues are generally resolved swiftly and painlessly.
It is also important to know that the IRS is entitled to request information on either the entire return, or only a portion of it. In these cases, if the IRS agent only wishes to examine a portion of the claim, they are to only receive that specific portion of the claim. Often people get themselves into unnecessary trouble because they volunteer more information than they were asked for.
Getting Help
Let’s face it, most people aren’t too familiar with tax law or the IRS’s policies, so it’s important you be aware of your right to have a tax professional present when the IRS wishes to perform your audit. A tax lawyer can help you ensure that neither party makes a mistake during the audit process. If you have a CPA prepare your taxes, make sure to have them present as well, as they are most familiar with your specific tax case.
