IRS Tax Audits & Collections

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I am pleased to announce the publication of my 14th book, IRS Tax Audits & Collections

U.S. Taxpayers who are under IRS Tax Audit, need to be aware of the following:

1. The audit does not mean taxes are due. Rather, the purpose of the audit is to ascertain how much in tax is due, if any.

2. Prior to the IRS imposing tax due under the audit, the Taxpayer/Taxpayer Representative may present legal authority and evidence to the IRS to confirm no tax is due. In the event of an adverse audit finding, they may request an audit reconsideration with the auditor, a meeting with the auditor’s supervisor, and if necessary move up the IRS hierarchy to request a meeting with group/regional managers if the taxpayer does not believe they have been fairly treated or if their constitutional rights have been violated including the rights to due process and equal protection of the law (under the 14th amendment), and the right not to have excessive fines imposed (under the 8th amendment). If the taxpayer is accused of any criminal conduct, they may refuse to give any further evidence based on the 5th amendment right against self-incrimination.

3. Prior to the IRS assessing tax, penalty and interest the taxpayer has the right to seek an administrative IRS appeal, a post-Appeal mediation, and if the matter is not resolved the taxpayer who receives a Statutory Notice of Deficiency may go to US Tax Court prior to paying any tax due which is not assessed until after Tax Court trial. In the event the taxpayer files a Tax Court Petition the IRS will refer the matter back to Appeals for another settlement conference prior to tax court trial.

In summary, the taxpayer has many avenues to object to the tax proposed prior to assessment of the tax, the IRS filing of a tax lien (for the tax year(s) at issue) and the initiation of IRS tax collection for the tax due after audit.

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