Notice we changed your account
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This notice informs the taxpayer that his return has been subjected to a preliminary audit and the IRS has seen some inconsistencies. An audit and examination is therefore scheduled to clarify issues and verify facts. Audits and examinations may yield a refund, a liability or no change at all. The audit notice should be accompanied by a copy of IRS Publication No. 1, Your Rights as a Taxpayer, which explains the audit and audit appeal processes. Read it carefully. You can also receive a free copy of Publication 1 by calling the IRS (800TAX-FORM). Examine the audit notice carefully. Do not assume that the information on it is correct. Things to check: Has the notice been sent to the correct person? (i.e. divorce nuances, different person with the same name) Has the statute of limitations expired (The period of time the IRS has to question your return)? (generally 3 years after the due date of your return for the year being examined, or the Date on which you actually mailed your return for the year, whichever is later. If, however, your tax return underreported income by 25% or more, the statute of limitations is 5 years, and if the tax return is fraudulent then there is no statute of limitations.) Have you been audited for the same reason within the last two years? If so, and if the prior audit resulted in no change on your return, inform the IRS and it probably will cancel the new audit. It is IRS policy to avoid repetitive audits unless there is a particular reason for the second examination. Nature of the examination Some examinations are handled entirely by mail. Some can take place in your home, your place of business, and Internal Revenue office, or the office of your attorney, accountant, or enrolled agent. If the time, place or method is not convenient for you, the examiner will try to work out something more suitable subject to the IRS’ final determination. Representation Throughout the examination, you can act on your own behalf or have someone represent you or accompany you. If you filed a joint return either you or your spouse, or both can meet with the IRS. You can have someone represent you or accompany you. This person can be any federally authorized practitioner, including an attorney, a certified public accountant, an enrolled agent (a person enrolled to practice before the IRS), an enrolled actuary, or the person who prepared the return and signed it as the preparer. If you want someone to represent you in your absence, you must furnish that person with proper written authorization. You can use Form 2848 or any other properly written authorization. If you want to consult with an attorney, a certified public accountant, an enrolled agent, or any other person permitted to represent a taxpayer during an interview for examining a tax return or collecting tax, you should make arrangements with that person to be available for the interview. In most cases, the IRS must suspend the interview and reschedule it. The IRS cannot suspend the interview if you are there. If we prepare your tax returns, we will represent you free of charge during a correspondence audit that pertains to information that you disclosed to us in the course of our engagement. This is a great benefit that you are not likely to find with other Certified Public Accountants. Documents to prepare The audit notice also will specify the items on your return that are being questioned and the records you should bring to support them. Bring to the audit only records that were specifically requested. This keeps unrelated items that might be questioned out of the auditor's sight If the auditor asks for any further records, have him request them in writing. This eliminates any misunderstandings and creates a paper trail that may be valuable in future proceedings. Source : IRS Publication 1 : Your rights as a taxpayer IRS Publication 556 : Examination of Returns, Appeal Rights and Claims for Refund |
