One of the worst fears of adults living in America today is an Internal Revenue Service audit. Taxpayers often have thoughts of levies, fines, penalties, and the worst of all punishments, being put in prison for tax issues. An IRS audit can even examine honest citizens who have always settled their taxes truthfully. The most truthful people will question themselves if they correctly did their taxes when they receive an audit notice. This is typically the ultimate most challenging and exhausting time in the life of any taxpayer. You need to know before you fret, though, that a law safeguards taxpayers in an IRS audit.



In 1998, the third installment of the Taxpayer Bill of Rights, TaBOR, was passed. After many grievances from Americans to Congress regarding the somewhat abusive behavior practiced by most IRS agents, this bill was passed as a result of those efforts. The IRS is required to truthfully advise the taxpayer of the action performed against them and of their rights by this bill.

Numerous people would think that the audit is a formal meeting between the taxpayer and the IRS auditor. More often than not, however, audits are merely conducted by post. The taxpayer typically receives a letter from the IRS asking for additional documentation for specific claims in their tax returns. These are usually resolved quickly if you kept organized records.

The IRS can audit the entire or part of your tax return. Make sure that you just offer documentation related to the portion being audited by the IRS. Providing excessive documentation encourages the IRS to examine closer and ask for even more documentation.

Also, many people aren't fit to handle the IRS on their own. It's often a sound idea to bring a CPA, a tax attorney, or some other qualified tax professional to any meeting with the IRS. If you used a tax service or accountant, make sure you call the actual person who prepared your tax return. They may be aware of specific problems related to your return and can assist in forming a reply to the agent with regards to your IRS problems.

Your audit will often finish with the IRS examiner informing you about any of the errors that they determined on your tax returns. You'll then be notified officially if you have to pay more money in fines, debts, or other financial adjustments. In very rare cases, a few taxpayers have even gotten refunds after an audit. This is not likely to occur, though.