In the year 2007 the IRS granted FULL relief to 71.07% of the underlying tax assessment in cases where a taxpayer requested audit reconsideration, according to the annual congressional report of the Taxpayer Advocate Service. Most taxpayers are aware that the IRS audits tax returns. These audits sometimes occur “in the field” requiring the taxpayer (and his or her representative) to meet with a revenue agent. The largest number of audits conducted by the IRS however are automated (by computer) or correspondence (by mail). Because there is little to no human interaction these automated and correspondence audits are plagued with inaccuracies.
Taxpayers that disagree with assessments of taxes stemming from these audits frequently get frustrated and run into the bureaucratic entanglements if they attempt to resolve the dispute on their own. A qualified tax professional can help the taxpayer navigate through IRS procedures and required documentation. This results in a high percentage of cases concluding with less tax, penalties and interest owed by the taxpayer than was originally assessed by the IRS. A taxpayer may request an audit reconsideration for several reasons including but not limited to: not receiving correspondence from the IRS, not appearing for an audit, if the taxpayer does not understand the notices the IRS sends, if the IRS did not duly consider the documentation a taxpayer submitted in his or her case, the taxpayer has new evidence to be considered, or the taxpayer has lost essential documents. Many times taxpayers are confused by IRS notices and fail to submit the required documentation in the time provided.
When in a cycle of an automated or correspondence audit, confusion and failure escalates a taxpayer’s problem and inevitably results in more penalties and interest being assessed. Although the circumstances surrounding an audit reconsideration almost always necessitate the hiring of a tax professional, the fees paid for representation can be well worth the investment considering the high likelihood of success. In our offices we have seen over and over again how many of our clients have drastically reduced (and some even completely eliminated) their tax liability, simply by hiring us to prepare and file their past due tax returns. Getting a qualified tax professional involved in your case can efficiently get your tax problem out of the automated cycle managed by computers. Professional help can get your case in front of a “live” IRS agent that has the power and authority to achieve resolution in your case.
