I represent taxpayers in Mount Laurel and the rest of New Jersey. Many taxpayers have been asking me about some of the IRS Audit Notices they have been receiving. I think it is best I write a blog with the various audit notices and letters used in an IRS examination.
The Examination Opening Letter 2205-A
This is the letter that informs the taxpayer that they have been selected for an examination. It advises the taxpayer that they can be represented by a Power of Attorney ( meaning a CPA, EA or attorney), and that they should begin gathering their records in preparation for the examination.
The information Document Request (“IDR”) Form 4564
An IDR is where the IRS request documentation and information it perceives is necessary to review the tax return. It is not unusual for there to be several, and sometimes many, IDRs provided to taxpayers and their representative throughout the audit process.
Report of Income Tax Examination Changes Form 4549
This is the report that the IRS will issue to the taxpayer and their representative to show the proposed changes and the tax impact of those changes, including penalty and interest.
Waiver of Restrictions on Assessment and Collection of Deficiency in Tax and Acceptance of Over-assessment Form 870
This form is a summary of the proposed changes and allows the Taxpayer(s) to sign and consent to the changes and immediate assessment.
Letter 950- “Thirty Day Letter“
This letter provides the taxpayer with the opportunity to request an Appeal hearing with the independent office of Appeals if he or she disagrees with the proposed audit changes.
Notice of Deficiency- “Ninety-Day Letter”
The Notice of deficiency is the final assessment of the changes and allows the taxpayer ninety-days to file their petition in the United States Court. If the ninety-days passes without the filing in the United States Tax Court, then the assessment will be final and the taxpayer will receive billing notice from the IRS. Failure to pay that or arrange for a collection alternative will result in Collection Enforcement beginning.
Call us today at 973.840.7350 if you have been receiving any notice from IRS or have a question.
Fanta Kaba
OnPoint Resolution LLC
309 Fellowship Road, suite 200
Mount Laurel, NJ 08054
Tel. 973.840.7350
Fax. 347.344.6942
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