7 Rights that you Have while Being Targeted by the IRS
Being audited is one of the most painstaking experiences for taxpayers even for people like Mitt Romney, Bill Gates, Warren Buffett, and many other business owners. In the event of an IRS audit, your best advantage is to know your rights. Be aware of the following seven rights that you have while being targeted by the IRS and you will potentially have a better time when you go through your IRS audit or other related issues.
1. Act Accordingly
You have the right to know the IRS rules and act accordingly. Keep your company out of trouble during an IRS audit by following directions listed on your audit letter. Organize records accordingly, and immediately replace missing records with duplicates. When it’s time for your audit, only bring what is asked for. Extra records that were not requested could inadvertently get your company into trouble. Do not try to go above and beyond or try to impress the agent. Remain professional, courteous and punctual. Your agent is a trained professional, and you should reflect that attitude to keep your business in good standing. If you can act and remain professional during your IRS audit, you are likely to either get in less or in no trouble at all. As a result, it will keep your business out of scrutiny of he federal government.
2. Representation
If your company is being audited, you have the right to represent yourself or hire professional representation. An attorney, CPA (certified public accountant) or enrolled agent can help guide you through the audit process and field questions during the actual audit. They can help you remain professional and organized for your audit as well as keep you informed of your rights throughout the audit process. They can also advise you how or how not to answer questions asked by the IRS auditor.
3. Confidentiality
Your audit will stay between you and the IRS, without being disclosed to anyone else. Throughout your audit, you have the right to inquire about the purpose and importance of information being requested. You also have the right to ask what the consequences will be if you decline to furnish requested information.
4. Quality Service
During an audit, you have the right to receive quality, professional service. IRS agents are specifically trained in customer service, and they should courteously address your concerns. If your service is below par or if the IRS agent makes you feel uncomfortable in anyway or somehow oversteps their bounds, you have the right to file a complaint with your region’s IRS Director.
5. Responsibility for Tax Payments
If the IRS is targeting you, know that you will not owe more than the accurate tax payment due. This means that you are responsible for the amount of taxes you owe, but you cannot be “charged” more tax payments than are due by law. Also, you have the right to set up a payment plan if you cannot pay the entire amount of taxes due at your audit.
6. Appeals
In the event your audit produces a result that you believe is unfair or incorrect, you can appeal to the IRS. Either the IRS Appeals Office or a court can review your tax case and determine whether your tax liability or collections status is appropriate. Having some form of legal representation also comes in handy in this scenario as well, as they can help you review your case and truly make sure that you have been treated unfairly. They can also help you do battle in the IRS Appeals Office or in court.
7. Waived Penalties and Interest
During your audit, if you acted in good faith of an IRS employee and incurred penalties or interest due to incorrect advice, you have the right to have these costs waived. A request to have these penalties and interest waived can be requested in writing.
When the IRS is auditing you, remember the seven rights above as they will help keep you and any other party involved out of trouble. These will help you move through the process smoothly and successfully. If you have questions regarding an audit, please contact a lawyer, CPA or enrolled agent
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Category: Taxes
