The examination may be conducted by correspondence, or it may take place at your place or in an Internal Revenue Office, or the office of your attorney or accountant. The place and method of examination are determined by the Internal Revenue Service. If the place and method are not convenient for you the examiner will try to make it more Suitable for you.

At the time of examination you may act on your own behalf or you may have someone represent you. An attorney, a CPA, an individual enrolled to practice before IRS or the person who prepared and signed your return may represent or accompany you.

The examination usually begins when you are notified by the service that your return has been selected for examination. If you have gathered your records before the examination you will be able to clear up the questionable items and arrive at the correct tax liability with the least effort.

When the examination is completed the examiner will explain to you any proposed change in your liability and the reasons for the change. IRS follows Supreme Court decisions on tax cases but it is not required to follow lower court decisions. Do not hesitate to ask questions that are not clear to you. Most taxpayers agree to changes proposed by examiners and the examinations are closed at this level. If you do not agree you may appeal any proposed changes. Next report will cover repetitive examinations and appeal rights.

Article extracted from this publication >>  February 15, 1985