IRS Audits

An IRS Audit is the review & examination of supporting documentation to ensure that information reported on your tax return is accurate and reported correctly according to the tax laws.

Audit Selection
Selecting a return for audit does not always suggest that an error has been made. Returns are selected due to random selection and computer screening (exorbitant deductions or donations), document mismatching (tax return doesn’t match what was reported on W-2 or 1099), or related examinations (you do business with someone else who has been audited).

Audit Methods
An audit will include a review of the taxpayer’s supporting records.  It may be conducted in-person or through the mail.  An office audit is conducted at an IRS office while a field audit can take place at the taxpayer’s home, place of business, or accountant’s office.  You will be provided with a list of needed records.

Audit Notification
There are only two ways the IRS notify you that you have been selected for an audit: by mail or by telephone.  The IRS will never send you an email for any reason including notification of an audit.

Your Rights During an Audit
You have certain rights as a taxpayer.  Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer.  It also covers the examination, appeal, collection, and refund processes. Your rights as a taxpayer include:

  • Protection of Your Rights – The IRS is required to protect your rights.
  • Privacy and Confidentiality – The IRS will not disclose your information to anyone, except as authorized by law.
  • Professional & Courteous Service – IRS employees should be professional, fair and courteous.
  • Representation – A right to representation, by oneself or an authorized representative.
  • Payment of Only the Correct Amount of Tax – You are only responsible for the amount of tax due under the law.  You may be able to make monthly installment payments if you cannot pay off of your tax when it is due.
  • Help with Unresolved Tax Problems – The Taxpayer Advocate Service can help when you’ve been unsuccessful in dealing with the IRS.
  • Appeals & Judicial Review – You can contact the Appeals Office if you disagree with actions taken by the IRS.
  • Relief from Certain Penalties & Interest – The IRS will waive penalties when allowed by law.  They will waive interest that are as a result of certain errors or delays caused by an IRS employee.

Audit Determinations
The outcome of an audit can result in no change, agreed or disagreed.

  • No change: all items have been substantiated and results in no changes.
  • Agreed: the IRS has proposed changes which you agree with the changes.  You sign the form and make payment arrangements if necessary.
  • Disagreed: the IRS has proposed changes, but you do not agree with the changes.  You may file an appeal or mediate

Loggins Kern & McCombs can serve as your authorized representative during the audit process.  Once you give us authorization to be your representative, you no longer have to deal with IRS agents.  IRS Representation is one of our main areas of expertise.  Ben Loggins, a former IRS instructor/agent, has had continued success in negotiating and resolving problems by helping our clients get penalties lowered, liens released and audits completed.  Going through an audit without representation is like going to trial without a lawyer.