Audit and a Taxpayer’s Rights

An informed taxpayer is a safe one. It is necessary for taxpayers to be aware of their rights when they are about to be audited. Click here for more info.

1. There are a variety of audits

Audits might vary greatly from one another. These are the several kinds: When you make straightforward errors on your tax return and are required to send supporting documentation to the Internal Revenue Service (IRS), such as omitting to include a schedule with your return, you may be subject to a correspondence audit. If the Internal Revenue Service is content with the documentation you submitted, there will be no more action taken.

During an office audit conducted by the Internal Revenue Service (IRS), you will typically be requested to bring your tax records in for inspection. In the event that you claimed a significant deduction in one particular area, the Internal Revenue Service (IRS) may request to view the associated receipts in order to document such deductions.

An auditor will come to your place of business or residence to conduct a field audit. During this type of audit, the auditor will analyze documents and other evidence in order to validate the information on your tax return. It is possible that the auditor will instead come to the office of your representative, who may be someone like an attorney, a certified public accountant, or an enrolled agent.

2. It is essential to be aware of the rights you possess

As a taxpayer, you have the right, when subjected to an audit, to have:

  • An explanation of the procedure for the audit.
  • Representation by a lawyer, certified public accountant, or enrolled agent.
  • Include in your tax return any additional deductions that you weren’t able to include the first time around.
  • Make sure to ask for the national office of the IRS’s take on any specific technical difficulties that come up during the examination process.

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