Why it is Important in Tax System to Disagree with the IRS
Prepare a short paper explaining why it is important in our tax system to be able to disagree with the IRS and the initial steps you would take for a client who disagrees with the results of an IRS audit.
Specifically, you must address the following:
Explain the rights of the taxpayer during an audit.
Explain the rights of the taxpayer in an examination.
Explain the IRS audit process. Consider the following in your response:
Describe the techniques used for selecting taxpayers to audit.
Explain the documentation the IRS may request.
Explain the triggers that the IRS looks for in an audit.
Explain the consequences for clients of disagreeing with audit results. Consider the following in your response:
Explain the time limitations and deadlines for disagreeing with audit results.
Explain client options for pursuing a disagreement with the IRS.
Week 1
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Week 1
Over the years, there has been an increase in discussion regarding taxes. Most citizens acknowledge that taxes are one way the government sources revenue to offer the general public service. The Internal Revenue Service (IRS) plays a critical part in collecting federal taxes in the U.S. while administering the Internal Revenue Code. However, despite the IRS being given the power to collect taxes, the taxpayers also have some rights where they can disagree with the IRS without facing negative charges since they will not break any law.
For example, the taxpayer has a right to be informed during the audit. One critical information that taxpayers should be informed about is the laws that apply to them. This process will help taxpayers make well-educated decisions when responding to IRS requests. The taxpayer also has the right to representation where they can opt to represent themselves or be represented by a tax professional such as a certified public accountant, tax lawyer, or an enrolled agent. The taxpayer also has a right to quality service. Some quality services include prompt, professional, and courteous IRS services. For example, the person should receive timely responses to inquiries, have all questions answered, and be treated respectfully throughout the auditing process.
The taxpayer also has the right to appeal the IRS decision if unsatisfied with it to an independent forum. The benefit of this move is that the independent body within the IRS will review the individual's case objectively. This body will allow the taxpayer to challenge the audit findings, present additional information, or seek