ARTICLE

IRS Audits: The Facts

With all of the confusion, divisiveness, and shouting going on right now, it's important to attempt to block out the noise and focus on what is genuinely in our area of productivity.

Outsourcing IRS collection efforts is one method the IRS has opted to be more productive.

So, you know how you constantly hear that the IRS isn't going to call you? All of that is about to change this year.

The IRS will begin contracting with outside debt collection companies in the spring of 2017 to try to bring in more bacon to the IRS coffers, according to a small tidbit included in a transportation bill (of all things). They'll be phoning you.

If you owe the IRS a substantial amount of money, you may receive a letter that looks like this: https://www.irs.gov/pub/notices/cp40.pdf

A little over 300,000 taxpayers are receiving such letters, which include a specific "Taxpayer Authentication Number" so that if you do receive a phone call, you can verify that it is legitimate and not one of the many scammers who target individuals with tax arrears.

[Learn more from the IRS here:
https://youtu.be/PuONAnr38Bk]

Of course, it's our responsibility to make all of this nonsense disappear on your behalf, so if you owe the IRS more than $10,000... Please send me an email so that we can get started on solving your problem, if we haven't already.

Or perhaps you're in the middle of an audit. Here are some opinions on the subject...

Sara F Gonzalez’s “IRS Problems” Strategy Note Facts About IRS Audits
“Success is nothing more than a few simple disciplines, practiced every day.” – Jim Rohn

It's common to feel like an IRS auditor isn't giving you a fair shake.

The auditor may appear irrational. It can feel as if the auditor is unsatisfied no matter what you do. You've been informed you owe the IRS money when you know you don't.

The good news is that IRS auditors aren't the end of the line.

Before the IRS can complete an audit, they must provide you the opportunity to contest it in federal tax court and with an IRS appeals officer, as required by law.

The IRS must advise you of your right to contest the audit before it becomes final. A "Notice of Deficiency" is the name for this letter. The Notice of Deficiency affords you a crucial legal right: you can challenge the IRS audit to Tax Court and have it reviewed by an independent court.

After the IRS delivers you the notice of deficiency, you have 90 days to submit a "petition" in Tax Court. If the 90-day period has already passed, you may be eligible for audit reconsideration.

The IRS will bring your case to an IRS Appeals Officer for settlement before going to trial. The job of the IRS Appeals Officer is to settle the matter according to how a judge would rule, not how an auditor would rule. IRS Appeals Officers have a level of latitude that IRS auditors don't always enjoy. The majority of IRS examination cases end this way, with no results accessible to auditors.

IRS auditors and Tax Court judges have different perspectives on cases than IRS appeals officers. If you are correct, you can testify – outline what you will tell the judge to the appeals officer. If the IRS discovers that their auditor was being unreasonable in advance of trial, they will very certainly want to settle the case on the basis of how an independent court would decide.

When the final decision is left in the hands of the Tax Court rather than the IRS, the auditor often has a narrow view of your case and does not evaluate how outsiders would decide it.

And in this scenario, having a pro on your side is advantageous.

Give us a call right now.

Warmly,
Sara F Gonzalez

(704) 599-3355

Kohari & Gonzalez PLLC

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