Tax audits occur less frequently than most people believe they do, and most of them are conducted by mail. However, some Frankfort, Illinois residents may face an in-person tax audit at some point, and it is wise to prepare for this procedure.
According to H&R Block, the Internal Revenue Service (IRS) uses a complex formula to determine who needs an audit. For example, those who file tax returns containing many controversial errors may end up in an audit.
What rights do you have in a tax audit?
Should an audit find its way into your daily planner, one of the most critical favors you can do for yourself is learn about your rights. Knowing that you have rights may help you feel better about participating in an audit. During an audit, American taxpayers have:
- The right to courteous and professional treatment by IRS auditors
- The right to have legal representation present during the audit
- The right to understand why auditors may ask for specific information
- The right to know what may happen if you do not have the requested documentation
- The right to know how IRS personnel plan to use your information
- The right to keep your tax matters confidential and private
- The right to appeal disputes or disagreements through the IRS or the court system
Remember to show your auditor the same courteous treatment you expect during the audit. Understanding your rights when a tax controversy results in an audit is the first step in preparing for the procedure. Learning more about tax law and audits can also help you prepare for your meeting with the IRS.