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October Tax Tips


   

Examinations (Audits)
The IRS accepts most taxpayers' returns as filed. If the IRS inquires about your return or selects it for examination, that does not suggest you are dishonest. The inquiry or examination may or may not result in more tax; your case may be closed without change; or you may receive a refund.

Repeat Examinations
If the IRS examined your return for the same items in either of the two previous years and proposed no change to your tax liability, please call as soon as possible so the IRS can determine whether to discontinue the examination. Publication 556, Examination of Returns, Appeal Rights, and Claims for Refund, will give you more information about the rules and procedures of an IRS examination.

Appeals
If you do not agree with the examiner's proposed changes you can appeal them to the Appeals Office of IRS. Most differences can be settled without expensive and time-consuming court trials. Your appeal rights are explained in Publication 5, Your Appeal Rights and How To Prepare a Protest If You Don't Agree

If you do not wish to use the Appeals Office or disagree with its findings, you may be able to take your case to the U.S. Tax Court, U.S. Court of Federal Claims, or the U.S. District Court where you live. If the court agrees with you on most issues in your case and finds that the IRS' position was largely unjustified, you may be able to recover some of your administrative and litigation costs.

Collections
Publication 594, What You Should Know About the IRS Collection Process, explains your rights and responsibilities regarding payment of federal taxes. It describes what to do when you owe taxes and the collection actions that the IRS may take.

Innocent Spouse Relief
Generally, both you and your spouse are responsible, jointly and individually, for paying the full amount of any tax, interest, or penalties due on your joint return. However, if you qualify for innocent spouse relief, you may not have to pay the tax, interest, and penalties attributable to your spouse (or former spouse). For more information, see Publication 971, Innocent Spouse Relief.

See IRS Publication 1, Your Rights as a Taxpayer.

October Dates and Actions

 

Information courtesy of the Internal Revenue Service.

 

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