How Does the IRS Determine Which Tax Returns to Audit?
According to the IRS, tax returns are selected to be audited in one of two ways: (1) the IRS uses computer programs to identify returns that may have incorrect amounts. These programs may be based on information returns, such as Forms 1099 and W-2, on studies of past examinations, or on certain issues identified by compliance projects; and (2) the IRS uses information from outside sources that indicates that a return may have incorrect amounts. These sources may include newspapers, public records,and individuals. If the IRS determines that the information is accurate and reliable, they may use it to select a return for "examination."
Other Tax Litigation FAQs
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What Rights do Taxpayers Have When Dealing With the IRS?
A: IMost people consider any dealings with the IRS to be very stressful and frustrating. Keep in mind that taxpayers have important rights when dealing with the … More -
Q:
What is the IRS Appeals Office?
A: If you disagree with the IRS findings in your case, you can appeal your case to the Appeals Office of the IRS. The local Appeals Office is separate from and … More -
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What Protections are Taxpayers Entitled to When They Have a Dispute with the IRS?
A: When taxpayers have a dispute with the IRS, they are entitled to the following minimum protections from the Appeals Office: Appeal disputes arising under the Internal … More -
Q:
What is an Installment Agreement?
A: If you owe the IRS money, but can't pay it in one lump sum, the IRS might allow you to pay according to an "Installment Agreement." Installment … More -
Q:
What is an Offer in Compromise?
A: An "Offer in Compromise" (OIC) is an arrangment made with the IRS to settle unpaid tax accounts for less than the full amount of the balance due. This … More -
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Which Taxpayers Qualify to Make an Offer in Compromise to the IRS?
A: The Offer in Compromise program is an option for taxpayers who can't pay the tax they owe, either in a lump sum or through an installment agreement, and have … More -
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What is a Partial Payment Agreement with the IRS?
A: When you can't pay all the tax you owe to the IRS in a lump sum, you may be able to work out a payment plan to pay what you owe. If the amount you owe is so … More -
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What is Innocent Spouse Relief?
A: As set forth in more detail in IRS Publication 971, under the law, spouses are jointly and individually responsible for any tax, interest, and penalties on a … More -
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How do I Apply for Innocent Spouse Relief?
A: To apply for Innocent Spouse relief, file Form 8857, "Request for Innocent Spouse Relief," and attach a statement explaining why you qualify for … More -
Q:
My Employer Received an IRS Wage Garnishment Order, Can I Stop It?
A: If your employer has received an order from the Internal Revenue Service to garnish your wages for back taxes, there are some steps you may be able to take to stop … More
Tax Litigation Sub-categories
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IRS Tax Problem
Student Loan Interest Deductions |
Tax Deductions
Taxpayer Identification Number |
