The IRS Audit Process Includes Taxpayers' Rights

You may not agree with the wry observation that an IRS audit letter is better than no mail at all, especially if you're the recipient. However, just because your tax return has been selected for special scrutiny, and you may need tax relief in California, it does not mean you are suspected of doing anything wrong. In fact, the IRS definition of an audit is this:

"An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is accurate."

You may have just omitted some critical piece of evidence that you are entitled to a tax deduction, or you were selected randomly. Here are three possible reasons the IRS selected you for an audit:

• You fell within the parameters of a computer generated statistical formula. For example, your return shows higher than average tax credits or deductions based on the norm for other taxpayers within your income range.
• Your W-2 or 1099 forms don't match up with what your employer or clients reported.
• Your return involves another taxpayer, such as a business partner or investor who was also audited.

Whatever the reason for the audit, the IRS notifies you either by mail or by telephone. (Note: The IRS never uses e-mail to inform a taxpayer of an audit. If you receive such notification, it is a scam.)

Depending on the type of audit, your dealings with the IRS could be:

• Entirely by mail: The IRS audit letter requests you provide additional information about specific items on your tax return. Read the notification carefully and don’t put off complying.
• In person: The auditor could either show up at your place of business or you could be asked to come to the IRS office.

Whichever audit method occurs, taxpayers do have rights. Your audit letter or follow-up letter after a telephone notification will contain IRS Publication 1, which outlines your rights to:

• protection of your rights throughout the audit
• privacy and confidentiality and your right to know why certain information is being requested courtesy and professional treatment by the auditor
• pay only the correct amount of the tax required by law
• access to the Taxpayer Advocate Service if you have not been able to resolve a problem with the IRS
• review of your case by the IRS Office of Appeals as well as by Judicial Review
• representation by a tax specialist, who has your signed Power of Attorney

The final bullet point above may be your best alternative during a process that could well become complicated and stressful. Optima Tax Relief has experienced and qualified tax specialists who can represent you during an IRS audit and help with any subsequent negotiations.

Devin Finley is a freelance writer and tax relief expert. Devin writes on a multitude of financial and legal topics. He enjoys collaborating and strategizing with other professionals to ensure tax & debt clients receive competent and beneficial representation. For more information Visit http://optimataxrelief.com/