Federal Tax Procedures: IRS and Appeals

Question 1

A written protest needs to be filed when an appeals conference is requested. The protest must include

Answer 1

1) the taxpayer’s name, address, and daytime phone number,
2) a statement requesting the appeal on the IRS findings,
3) a copy of the letter showing the findings,
4) the tax periods or years involved,
5) a list of the proposed changes the taxpayer does not agree with and why,
6) the facts to support the taxpayer’s position,
7) the law or authority supporting the taxpayer’s position, and
8) a signature from the taxpayer stating that it is true, under the penalties of perjury.

Question 2

The IRS examines some federal tax returns to determine if income, expenses, and credits are being reported accurately. Once an examination is concluded and the taxpayer agrees

Answer 2

the case will generally not be reopened unless there has been fraud or misrepresentation of a material fact

Question 3

IRS Publication 5

Answer 3

recommends filing a written small case request if the amount of the tax is not more than $25,000

Question 4

A routine review of a received return by the IRS

Answer 4

looks to make sure the tax return has been signed, all items have been reported, and there are no mathematical or clerical errors

Question 5

What are the three types of IRS examinations?

Answer 5

1) Correspondence examinations: if only a few items are under investigation
2) Office examinations: to examine more complex issues
3) Field examinations: to investigate even more complex issues