These are typical of questions asked by taxpayers and are presented as a Public service of this publication and. the IRS.

If your return is examined

  1. How does the TRS select returns for examination?
  2. Most federal tax returns are accepted as filed. However, the IRS audits some returns to verify correctness of income, expanses and credits. If your return is selected for examination, it does not suggest that you made an error or are being dishonest. Returns are chosen by computerized screening, by random sample, or by an income document (for example, Forms W2 or 1099) matching program.

(Q, How does an examination begin?

A, An examination usually begins when we notify you that your return has been selected, Some examinations are handled entirely by mail. Examinations not handled by mail may take place in your home, place of business, an Internal Revenue office, the office of your attorney, accountant, or enrolled agent.

  1. How do l prepare for an audit?
  2. We will tell you what records you will need. If you gather your records before the examination, it can be completed with the least effort. IF we propose any changes to your return, we will explain the reasons to you. You should not hesitate 19 ask about anything that is unclear to you.
  3. Can T bring someone with me to the audit?
  4. Throughout the examination, you may action your behalf to have someone represent you to accompany you. If you filed joint return either you or your spouse, or both, may meet with the IRS. An attorney, a certified public accountant, an enrolled agent, or the person who prepared the return and signed it as the preparer may represent or accompany you.

Do I have to be present at the audit?

  1. No. But if you want someone to Represent you in your absence, you must furnish the representative with written authorization, Make the authorization on Form 2848, “Power of Attomey and Declaration of Representative”, or any other properly written authorization,
  2. Can I tape record the audit?
  3. You may make an audio recording of the examination interview. Your Request should be made in writing and you must notify the examiner 10 days in advance and bring your own recording equipment.

 

Article extracted from this publication >>  August 11, 1995