What Are My Rights During an IRS Audit?
Taxpayers have certain rights during an IRS audit. These are documented in what is known as the Taxpayer Bill of Rights. While it won’t take away the fear of being audited, it is important to know that you have such rights and there are resources available to help ensure you are treated fairly. Having a Licensed CPA represent you is also recommended to protect your interests at every stage of the process because tax laws and procedures are complex. The full list of rights is available on the IRS website but here are a few of the key ones:
The Right to Be Informed
Taxpayers have the right to be informed about the tax laws that apply to them. This right is crucial because it helps you to make well-educated decisions about how to respond to IRS requests. The IRS provides information on its website and social media, through its phone lines, and the Taxpayer Advocate service. If the IRS decides to audit you, it is required to provide you with written notices and correspondence that clearly communicate the purpose, scope, and timeframe of the audit as well as explanations of the audit process, your rights, and the potential outcomes.
The Right to Retain Representation
You can opt to deal with the IRS yourself or choose to appoint a qualified tax professional, such as a tax lawyer, certified public accountant (CPA), or an enrolled agent (EA), to represent you before the IRS. This representative can communicate with the IRS on your behalf, attend meetings, and respond to inquiries.
Having an experienced CPA by your side can provide significant benefits. A knowledgeable CPA has the skills and experience to navigate complex tax laws, guide you through the audit process, negotiate with auditors, advise you regarding your options, and protect your rights.
The Right to Quality Service
You have the right to receive prompt, courteous, and professional service from the IRS. This includes having your questions answered, receiving timely responses to your inquiries, and being treated respectfully throughout the audit process. The IRS must assign competent and knowledgeable personnel to handle your audit. If you encounter unprofessional behavior or inadequate service, you have the right to escalate the issue to a supervisor or contact the IRS Taxpayer Advocate Service for assistance.
The Right to Appeal an IRS Decision in an Independent Forum
You have the right to a fair and impartial administrative appeal of most IRS decisions. An independent office within the IRS will review your case objectively. The appeal process allows you to present additional evidence, challenge the audit findings, and seek a fair resolution. However, you are required to follow the specific appeal procedures outlined by the IRS. Relying on a tax lawyer experienced in IRS audits can be highly beneficial in navigating the appeals process and presenting your case effectively.
The Right to Pay No More than the Correct Amount of Tax
You have the right to pay only the amount of tax you owe. If the audit uncovers errors, you have the right to understand how those errors were calculated and have the opportunity to contest them. The IRS should conduct the audit fairly and accurately, ensuring that your tax liability is determined based on the applicable tax laws and regulations.
Facing an IRS audit can be an overwhelming experience, but being aware of your rights can help you navigate the audit process with more confidence. In most cases, it is recommended to consult a CPA specialized in IRS Tax Audit who can guide you through the audit and protect your rights.
We have extensive experience with IRS Audit. If you have received an audit notice or you owe back taxes, contact us for a consultation.