An IRS Audit (Part VIII) How does the IRS conclude an audit? An audit can be concluded in three ways: No change: an audit in which you have substantiated all of the items being reviewed and results in no changes. Agreed: an audit where the IRS proposed changes and you understand and agree with the…

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An IRS Audit (Part VII) How long does an audit take? The length varies depending on the type of audit; the complexity of the issues; the availability of information requested; the availability of both parties for scheduling meetings; and your agreement or disagreement with the findings. What are my rights? Publication 1, Your Rights as…

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An IRS Audit (Part VI) How far back can the IRS go to audit my return? Generally, the IRS can include returns filed within the last three years in an audit. If they identify a substantial error, they may add additional years. The IRS usually does not go back more than the last six years.…

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An IRS Audit (Part V) How do I know if the IRS received my response? For any delivery service you may use, always request confirmation that the IRS has received it. For example, if you use the US Postal Service, you can request one of their additional services to ensure delivery confirmation. What if I…

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An IRS Audit (Part IV) Examples of records the IRS might request in an Audit (cont.) Loan agreements – Include a copy of the original loan with the following: Names of the borrowers Location of the property Financial institution making the loan Amount borrowed Terms (the number of months to pay) Settlement sheet If the…

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An IRS Audit (Part III) What do I need to provide for an IRS Audit? The IRS will provide you with a written request for the specific documents they want to see. Examples are listed below. The IRS accepts some electronic records that are produced by tax software. The IRS may request those in lieu…

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An IRS Audit (Part II) How am I notified? Should your account be selected for audit, the IRS will notify you by mail. They will not initiate an audit by telephone. How will the IRS conduct my audit? The IRS manages audits either by mail or through an in-person interview to review your records. The…

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An IRS Audit What is an IRS audit? An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct. Why am I being selected for an audit? Selection for an…

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Taxpayer Bill of Rights (Part XVIII): The IRS has adopted a Taxpayer Bill of Rights as proposed by prior National Taxpayer Advocate Nina Olson  Bill of Right #10: The Right to a Fair and Just Tax System (cont.)  · You may request that the IRS remove any interest from your account that was caused by…

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Taxpayer Bill of Rights (Part XVII): The IRS has adopted a Taxpayer Bill of Rights as proposed by prior National Taxpayer Advocate Nina Olson  Bill of Right #10: The Right to a Fair and Just Tax System  Taxpayers have the right to expect the tax system to consider facts and circumstances that might affect their…

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