You have just walked through your previous tax return with an Internal Revenue Service (IRS) auditor, and as you await the results, you feel as though you are back in high school awaiting a major test grade. You can’t help but to wonder what you can expect to happen based on the IRS’s audit findings. The past two blogs, Parts 1 and 2 of a three-part series, discussed the reasons why the IRS audits taxpayers and what an audit involves. In this article, Part 3 of the series, you’ll find out the different ways the IRS may conclude your audit, based on tax audit reviews.
At the end of your IRS audit, one of three things will happen. One, you will experience no change if you were able to substantiate all items that the IRS reviewed, such as whether you claimed a child tax credit. Two, the IRS may propose changes to which you agree. Or, three, you might not agree with the IRS’s proposed changes.
If you are in agreement with the changes that the IRS has proposed, you will need to sign a form or examination report depending on the kind of audit that the IRS conducted. In this situation, if it is determined that you owe the government money, you can take advantage of multiple payment options.
However, if you don’t agree with the IRS’s findings, you may ask to have a meeting with a manager at the IRS. In addition, the agency offers mediation opportunities. Filing an appeal is also possible if time is on your side in light of the agency’s statute of limitations.
Remember that you have several rights when going through an IRS audit. For instance, it is within your rights to experience courteous and professional treatment by employees of the IRS. In addition, you have the right to keep your tax matters confidential. You also have the right to know why the agency is requesting information and how this information will be used. Finally, it is within your rights to have authorized representation as you navigate the IRS audit process.