IRS Audits: A Step-by-Step Guide

Tax practitioners and taxpayers need to understand the steps involved in an IRS examination. From the beginning, a taxpayer could receive a letter explaining there will be a correspondence or in-person audit. Correspondence audits usually cover one or two particular items. In-person audits could be more intense. Taxpayers receiving an IDR (information document request) want to cooperate with the IRS but not divulge unnecessary information.

Tips for audit scheduling might include not holding the inquiry at the taxpayer's abode or business. The IRS may choose to issue third-party summons to acquire the information needed. Once the findings are received, a taxpayer may choose to agree or disagree with the findings and may want to request reconsideration. Knowing the situations that are eligible for appeal and how to appeal an unfavorable determination is necessary for advisers handling these often-encountered tax controversies. From the onset to its resolution, there are steps that tax professionals can take to put their clients in a better position.

Listen as our tax relief expert explains the audit process cradle to grave for tax professionals and taxpayers.

1. The IRS examination process: introduction
2. Understanding taxpayers' rights: Publication 1
3. Selection process
   1. DIF scores
   2. IRS' targeted tax missteps
4. The audit process cradle to grave
   1. Receiving notice of examination
   2. Responding to IDRs
   3. Handling the examination
   4. Revenue officers
   5. Income tax examination changes: forms and responses
   6. Reconsideration, appeal, and mediation
5. Collections

The panelist will cover these and other critical issues:

• Proper responses to IDRs
• When a taxpayer should consider appeals or mediation
• Tips for handling an in-person examination
• Collection issues including levies, garnishments, and OICs

Learning Objectives

After completing this course, you will be able to:

• Identify methods IRS can use to collect outstanding debt
• Determine advice for handling an in-person examination
• Decide when a taxpayer should consider appealing an IRS finding
• Ascertain areas the IRS targets for examinations

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite: Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of individual income taxation, including itemized deductions, individual income tax credits, net operating loss limitations including carrybacks and carryforwards.

Strafford Publications, Inc. is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of Accountancy have final authority on the acceptance of individual courses for CPE Credits. Complaints regarding registered sponsons may be submitted to NASBA through its website: www.nasbaregistry.org.

IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).