Agents of the taxing authorities need to regularly carry out site visits to make sure that what you may have stated in the papers you filed in response to the request of an audit is true. They mostly do this to intimidate any individual that always seem to evade complete payment.
However, you are under no obligation to let them in. They are only allowed into public spaces of your home or business. Do not give them any records or documents; instead say you have ‘representation’ in which case the interview should be terminated.
Always ask to see the person’s credentials. A Revenue Officer, for example, is most likely there to collect unpaid income or payroll taxes. A Revenue Agent is slightly different as they audit you and/or your business. A Special Agent investigates criminal activities. They must notify you if you are under criminal investigation.
Do not lie to the IRS. This could be held against you later. Again, tell the agent that you have representation either through a CPA or tax attorney and the interview should be terminated.
If you, your employees or any member of your family are visited or contacted by the I.R.S, it is crucial to put the following into consideration;
– Even though you have been paid a visit of contacted by an agent of the I.R.S, this doesn’t mean that you have not done everything appropriately.
– Stay courteous and respectful.
– Ask for proof that the person works with the I.R.S like an ID-card, ensure you put down the name of the agent and the identification number.
– Ensure you have a full understanding of the type of I.R.S inquiry. If this information is not provided voluntarily by the I.R.S agent, then it’s best to ask for it. Ensure you comprehensively ask the reason the agent is making the appearance or contact.
– Instantly inform the agent that you request time to get advice from a Tax Representative.
– Once the request has been made by you, you are no longer obligated to provide answers to any more questions, but ensure you still remain respectful while not providing information.
Even though you have gotten a phone call, letter or been paid a visit by an agent of the I.R.S, this doesn’t mean you are guilty of any wrongdoing. Audit selections are made based on a computer model that closes returns according to how much dissimilarities there are from a national norm. Most times, after the required documentation or information has been supplied to the I.R.S and it is satisfactory, the file is usually closed.