In Mount Laurel, New Jersey many taxpayers have asked me similar questions about IRS Audits and how it works. Here are some of the questions:
How far back can the IRS go to audit my return?
Generally, the IRS can include returns filed within the last three years in an audit. This time limit is often referred to as the “ASED” If the IRS believes that fraud has been committed they may be able to pursue earlier years.
How long does an audit take?
The length varies depending on the type of audit; the complexity of the issues; the availability of information requested; the availability of both parties for scheduling meetings; and your agreement or disagreement with the findings.
What are your rights when dealing with the IRS?
IRS Publication 1, Your Right as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund process. These rights include:
- A right to professional and. Courteous treatment by IRS employees.
- A right to privacy and confidentiality about tax matters.
- A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.
- A right to representation, by oneself or an authorized representative.
- A right to appeal disagreements, both within the IRS and before the courts.
How does the IRS conclude an audit?
An audit can be concluded in three ways:
- No change: an audit in which you have substantiated all of the items being reviewed and results in no changes.
- Agreed: an audit where the IRS proposed changes and you understand and agree with the changes.
- Disagreed: an audit where the IRS has proposed changes and you understand but disagreed with the changes.
What happens when you agree with the audit findings?
If you agree with the audit finings, you will be asked to sigh the examination report or similar form depending upon the type of audit conducted.
If you owe money, there are several payment options available. Publication 594, The IRS Collection Process PDF, explains the collection process in detail.
What happens when you disagree with the audit findings?
You can request a conference with an IRS manager. The IRS also offers mediation or you can file an appeal if there is enough time remaining on the statute of limitations.
If you have any questions or concerns, call 973.840.7350 and meet with me today for a consultation.
309 Fellowship Road, suite 200
Mount Laurel, NJ 08054
Tel. 973.840.7350
Fax. 347.344.6942
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