When To Stop An IRS Audit

by Bruce Givner on October 3, 2011

When should you stop an IRS audit so that you can get to the IRS Appeals Division?

An IRS audit begins with the IRS asking a series of factual questions in the form of IDRs: information document requests. As part of the IRS audit, the auditor may also ask to meet with the taxpayer. The taxpayer’s representative, typically the accountant who prepared the return, will try to meet with the auditor instead of having the taxpayer meet with the auditor.

At some point the auditor will state a position on one or more issues. For example, in the audit of a closely held business, assume the auditor believes that a corporation’s loan to the shareholder should be reclassified as compensation. Your accountant has complied with the IRS audit and provided the auditor all requested information, including the payment schedule and the board action authorizing the loan. The auditor then asks, in essence, sign the proposed list of assessments or give me any other arguments you have. At this point, you should stop the IRS audit and contact an expert tax attorney. You need to bring new information and new arguments to the table. The auditor’s mind is clearly made up. So have the auditor write up the case, and make sure you or your CPA contact an expert tax Attorney. If less than one year remains in the statute of limitations, you must file a petition in Tax Court to get to the IRS Appeals Division. However, you want to get to the IRS Appeals Division, which is when you will hire an appraiser to value your compensation. The appraisal will be the NEW FACT and NEW ARGUMENT you need to win your matter.

So when you or your CPA are asked to sign a list of proposed assessments, or present new arguments, it’s time you stop the IRS audit and contact an expert tax attorney.

{ 8 comments… read them below or add one }

admin October 7, 2011 at 2:22 pm

Absolutely.

Reply

Carajean October 29, 2011 at 7:05 pm

My problem was a wall until I read this, then I smsaehd it.

Reply

Hellen Long October 8, 2011 at 2:17 am

Appreciated the share!
Hellen

Reply

Minerva October 29, 2011 at 6:04 pm

We’ve arrvied at the end of the line and I have what I need!

Reply

Bubbi October 27, 2011 at 4:16 am

Hats off to whoever wrote this.

Reply

America Didion November 2, 2011 at 2:48 am

I wish to convey my respect for your generosity in support of folks that require guidance on this particular issue. Your personal dedication to getting the solution across turned out to be exceptionally informative and has without exception helped some individuals just like me to achieve their goals.

Reply

admin November 2, 2011 at 9:35 am

If you ever have questions about when to stop an IRS audit, make sure you give us a ring.

Reply

Mikki Ufford November 10, 2011 at 6:30 am

Really fine publish. I just just simply came on your website not to mention wished to say i always have really really liked reading your website content. Anyway I am going to turn out to be subscribing to all your feed not to mention I really hope most people publish once more soon enough.

Reply

Leave a Comment

Previous post:

Next post: