When dealing with an IRS audit you need to know your rights. Managing conversations with the IRS during an audit is not only nerve racking and challenging. It can expose you to additional tax liability and financial risk. However, when you do have to deal with an IRS audit or agent you have rights that must be respected and upheld. Even though it may seem as though you are in a powerless situation facing overwhelming odds against a major agency, there are effective strategies and important rights you need to understand.
Maybe the most important right we are talking about is the fact that the IRS must inform you of your rights. Sometimes, the agency may forget this. It can actually lead to dropped cases or quick settlements.
There are plenty of other rights that taxpayers have when dealing with the IRS, though. Here are just a few:
- You have the right to know how the IRS will use any information that they ask for from you, in addition to why they are requesting the information.
- You don’t have to represent yourself in your dealings with the IRS. An attorney can represent you.
- Along the same lines, if the IRS request an interview with you, you are allowed to have a representative there with you during the interview.
- You only have to pay the IRS what you owe, and if you can’t do that, you have the right to discuss payment plan options with the IRS.
- In addition to the above point, if you are not satisfied with the decision the IRS makes with your case, you always have the right to appeal that decision.
It is also important to know you never actually have to speak with the IRS, and it is usually not in your best interests to do so. When dealing with an IRS audit you need to know your rights and develop a strategy to limit your exposure. We invite you to download and review our white paper “What to Expect from an IRS Audit.” Learn more about reducing your legal, tax and financial exposure and contact Allen Barron or call 866-631-3470 for a free consultation or to schedule an appointment.