What Does an IRS Revenue Agent Do?
The purpose of the revenue agent is to conduct a more thorough investigation of the taxpayer and the facts and circumstances surrounding their return.
In some cases, the revenue agent will ask the taxpayer to come in and discuss their case and also produce supporting documents.
In other cases, the revenue agent will go to the taxpayer’s home or place of business. The revenue agent then reviews the facts, makes adjustments when appropriate, and issues a “revenue agent’s report,” which is a summary of their findings.
The IRS audit ends when the revenue agent issues a report stating either one of two outcomes. The taxpayer will either receive a no-change letter or a notice of proposed adjustments.
IRS Examination Deadlines
An IRS audit may not be closed for several months following the date the taxpayer meets with the revenue agent.
Throughout the period, the IRS will issue a series of letters and/or notices that require the taxpayer to respond to one or more deadlines.
These letters and/or notices may come in the forms of thirty-day or ninety-day response times and these documents help to move the case out of the IRS examination function and into IRS collections.
Responding to one or more of these notices is important. Taxpayers are often unaware of the consequences for failing to respond to notices.
In addition, the IRS is only required to mail out letters and/or notices, but the agency is not required to make sure that a taxpayer receives the notice.
In other words, the IRS mails these types of documents to the taxpayer’s last known address, even if the taxpayer no longer resides there.
Your Next Step If You Have Received an IRS Examination Notice
As a taxpayer receiving a notice to audit from the IRS, I hope that your conditioned response was not sheer panic. If you did your best and were careful or had a good CPA file your tax return, the audit process could be short and sweet.
The auditors are not out for blood, but they are also not going to be your friends. If you have not reported income or miss taken deductions, they might even be a bit chilly.
You will likely need to prepare for some stiff penalties and interest being applied to your bill.
Call my office if you need some help sorting it out. Rather than passively participating in the government’s investigation, or being subject to the whims of an auditor with an agenda — and having to pay more than you might be able to afford — call our firm at the out-set.
We can provide a swift analysis of your issues, a robust defense, and a skillful handling of all your audit-related issues. Ding!