How to Call the IRS Bluff con't...

Audits by Mail

Just the thought of having to deal with the IRS scares people into submission. But, did you know you have the right to conduct an audit by mail? As long as you cooperate fully in providing the IRS with details of your claims, you can conduct an audit through the mail and never have to worry about a face-to-face confrontation.

The greatest advantage to conducting an audit by mail is that you will never be caught off guard. You will never have to answer questions without being able to fully contemplate the need to provide the information requested. It is not uncommon for the IRS to make arbitrary determinations based on information they obtain from you that is really irrelevant to the return. In most cases the investigation of an item turns into a fishing expedition for whatever is uncovered. Avoid this trap by conducting your audit by mail.

Bluff #5: We need this form signed!

Imagine someone so fearful of you that they will do anything you want them to do. Then imagine you’re at a disadvantage in the situation and see a way out. All you have to do is get them to sign something that gives you the advantage back. What would you do?

IRS Forms You Should Never Sign

In an audit there are forms the auditor may ask you to sign that can take away your rights. Get that clear in your mind! You could lose your right to appeal! You could lose your right to claim deductions and your right to prevent enforced collection action. Read that again. You could sink your boat all by yourself if you fall for this bluff.

Form 872 is one of these forms. This form extends the amount of time the IRS can take when assessing your potential tax -- time they may not have if you don't sign.

Worth mentioning is that at any time you feel uneasy about the audit proceedings, you should stop the audit and advise the auditor that you want to be represented by a tax professional. You don't have to attend any more audit meetings if you don't want to. The IRS cannot compel you to appear in person unless it has a particular reason for meeting with you, which happens in very few cases. You'll avoid the fear and anxiety that most taxpayers experience when dealing with an auditor and the emotions that could lead you to commit costly mistakes.

Auditors are under pressure to dispose of their cases in a timely manner. That means they are less likely to engage in time-consuming "fishing expeditions" when dealing with a professional. Remember that old saying, “A lawyer that represents herself, has a fool for a client”. Don’t be a fool.

It’s up to you to Protect Your Rights!

Tax Audit Triggers To Avoid