IRS Audits: Responding to IDRs, Independent Office of Appeals, Extending the Statute, and Current IRS Initiatives

All tax practitioners need to be up-to-date on the latest IRS tax initiatives and current IRS audit procedures. Before the audit takes place, advisers need to understand the different types of examinations, the current IRS audit process, and when returns are no longer subject to audit. The type of audit: correspondence, office, field or compliance affects the effort and ease of resolving the issue(s) raised.

Since most audits take place just before the statute runs, deciding whether to grant the IRS an extension of time is often a critical initial consideration. Throughout the process, there is a fine line between cooperating with the IRS and its voluminous information document requests (IDRs) and providing information that could be damaging.

Most practitioners are aware of the benefits of appeal after receiving a disagreeable Revenue Agent's Report. Here, a case may settle for less than the full amount assessed. The recently enacted Taxpayer First Act of 2019 ensures all taxpayers with legitimate claims have access to the IRS independent appeals process.

Certain taxpayers, those with AGI of $400,000 or less or business taxpayers with gross receipts of $5 million or less, can request access to their file before going to court. Filing an effective written protest can circumvent going to court, saving the taxpayer significant time and money. Then again, there are times when a 90-day letter and trip to tax court may be the best or only alternative.

Listen as our panel of experts explains the IRS examination process, how to handle appeals when court is a viable alternative, and steps taxpayers can take to circumvent or ease the audit process.

1. Types of IRS examinations
2. Audit selection process
3. Current IRS initiatives
4. Responding: IDRs and correspondence
5. Extending the statute
6. Appeals
7. Litigation
8. Criminal investigations

The panel will review these and other important issues:

• The effect of the Taxpayer First Act on the IRS audit process
• How to respond to disagreeable Revenue Agent Reports
• Current areas IRS is targeting for examinations
• Considerations when responding to IDRs
• Negotiating with the Independent Office of Appeals

Learning Objectives

After completing this course, you will be able to:

• Identify types of IRS examinations
• Decide when a return may be audited
• Ascertain when going to appeals may be beneficial to the taxpayer
• Determine when litigation may be the best alternative

• 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 pass-through taxation, including taxation of partnerships, S corporations and sole proprietorships, qualified business income, net operating losses and loss limitations; familiarity with net operating loss carry-backs, carry-forwards and carried interests.

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).