IRS Publication 556

What Is IRS Publication 556: Examination Of Returns, Appeal Rights And Claims For Refund?

IRS Publication 556: Examination of Returns, Appeal Rights and Claims for Refund is a document distributed by the Internal Revenue Service (IRS) that gives information on the audit process, a taxpayer's right to appeal and how a taxpayer can claim a tax refund. If any changes, for example, extra taxes due, are proposed by the IRS, the taxpayer can either concur and pay the extra taxes or appeal the decision. In the event that the decision is appealed it tends to be fast-followed for resolution.

Understanding IRS Publication 556: Examination Of Returns, Appeal Rights And Claims For Refund

IRS Publication 556: Examination of Returns, Appeal Rights and Claims for Refund informs taxpayers of basic guidelines and methodology the IRS follows in examinations, what occurs during an examination, appeal rights, and how to file a claim for refund on a generally paid tax. The IRS utilizes software to assign a score to both individual and corporate tax returns, with high scores bound to bring about additional review. A tax return can likewise be pulled for review in the event that information in the return doesn't match different data sources, for example, a Form 1099 or a W-2. Form 1099 reports income from different sources and relates for the most part to business owners or specialists. A W-2 form reports a representative's annual wages and the amount of taxes withheld from their paycheck.

The IRS reviews tax returns for various reasons, and may not make any adjustment to the reported tax figure. Assuming the IRS verifies that extra taxes ought to be paid, taxpayers can hire an Enrolled Agent, attorney or other authorized person to address them in IRS procedures.

Examinations and Appeals

As made sense of in Publication 556, in the event of an audit, the IRS tells a taxpayer that their return has been chosen for additional examination, as well as what records are expected to conduct the examination and any IRS proposed changes.

Most taxpayers consent to the proposed changes, and the examination is closed. However, on the off chance that a taxpayer disagrees, they can file an appeal. On the off chance that the examination happens in an IRS office, the taxpayer can request a meeting with the examiner's supervisor. Assuming an agreement is reached, the case is closed. In the event that the taxpayer and the examiner's supervisor don't agree, the examiner will write up the taxpayer's case making sense of their position and the IRS's position.

The IRS offers fast track intervention services to assist taxpayers with settling issues and debates coming about because of examinations or audits, offers in split the difference and other assortment activities.