Irs Audit Letter Sample: Fill & Download for Free

An audit reply may take anywhere from 30–90 days depending on the complexity of the audit.I have posted some information about an IRS audit and what to expect. I hope you find this helpful.An IRS audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.Why am I being selected for an audit?Selection for an audit does not always suggest there’s a problem. The IRS uses several different methods:Random selection and computer screening - sometimes returns are selected based solely on a statistical formula. We compare your tax return against “norms” for similar returns. We develop these “norms” from audits of a statistically valid random sample of returns, as part of the National Research Program the IRS conducts. The IRS uses this program to update return selection information.Related examinations – we may select your returns when they involve issues or transactions with other taxpayers, such as business partners or investors, whose returns were selected for audit.Next, an experienced auditor reviews the return. They may accept it; or if the auditor notes something questionable, they will identify the items noted and forward the return for assignment to an examining group.Note: filing an amended return does not affect the selection process of the original return. However, amended returns also go through a screening process and the amended return may be selected for audit. Additionally, a refund is not necessarily a trigger for an audit.How am I notified?Should your account be selected for audit, we will notify you by mail. We won’t initiate an audit by telephone.How will the IRS conduct my audit?The IRS manages audits either by mail or through an in-person interview to review your records. The interview may be at an IRS office (office audit) or at the taxpayer's home, place of business, or accountant's office (field audit). Remember, you will be contacted initially by mail. The IRS will provide all contact information and instructions in the letter you will receive.If we conduct your audit by mail, our letter will request additional information about certain items shown on the tax return such as income, expenses, and itemized deductions. If you have too many books or records to mail, you can request a face-to-face audit. The IRS will provide contact information and instructions in the letter you receive.Depending on the issues in your audit, IRS examiners may use one of these Audit Techniques Guides to assist them. These guides will give you an idea of what to expect.What do I need to provide?The IRS will provide you with a written request for the specific documents we want to see. Here’s a listing of records the IRS may request.The IRS accepts some electronic records that are produced by tax software. The IRS may request those in lieu of or in addition to other types of records. Contact your auditor to determine what we can accept.The law requires you to keep all records you used to prepare your tax return – for at least three years from the date the tax return was filed.How do I know if the IRS received my response?For any delivery service, you may use, always request confirmation that the IRS has received it. For example, if you use the US Postal Service, you can request one of their additional services to ensure delivery confirmation.What if I need more time to respond?For audits conducted by mail - fax your written request to the number shown on the IRS letter you received. If you are unable to submit the request by fax, mail your request to the address shown on the IRS letter. We can ordinarily grant you a one-time automatic 30-day extension. We will contact you if we are unable to grant your extension request. However, if you received a “Notice of Deficiency” by certified mail, we cannot grant additional time for you to submit supporting documentation. You may continue to work with us to resolve your tax matter, but we cannot extend the time you have to petition the U.S. Tax Court beyond the original 90 days.For audits conducted by in-person interview – If your audit is being conducted in person, contact the auditor assigned to your audit to request an extension. If necessary, you may contact the auditor’s manager.How far back can the IRS go to audit my return?Generally, the IRS can include returns filed within the last three years in an audit. If we identify a substantial error, we may add additional years. We usually don’t go back more than the last six years.The IRS tries to audit tax returns as soon as possible after they are filed. Accordingly, most audits will be of returns filed within the last two years.If an audit is not resolved, we may request extending the statute of limitations for assessment tax. The statute of limitations limits the time allowed to assess additional tax. It is generally three years after a return is due or was filed, whichever is later. There is also a statute of limitations for making refunds. Extending the statute gives you more time to provide further documentation to support your position; request an appeal if you do not agree with the audit results, or to claim a tax refund or credit. It also gives the IRS time to complete the audit and provides time to process the audit results.You don’t have to agree to extend the statute of limitations date. However, if you don’t agree, the auditor will be forced to make a determination based upon the information provided.You can find more information about extending a statute of limitations in Publication 1035, Extending the Tax Assessment Period, or from your auditor.How long does an audit take?The length varies depending on the type of audit; the complexity of the issues; the availability of information requested; the availability of both parties for scheduling meetings; and your agreement or disagreement with the findings.What are my rights?Publication 1, Your Rights as a Taxpayer, explains your rights as a taxpayer as well as the examination, appeal, collection, and refund processes. These rights include:A right to professional and courteous treatment by IRS employees.A right to privacy and confidentiality about tax matters.A right to know why the IRS is asking for information, how the IRS will use it and what will happen if the requested information is not provided.A right to representation, by oneself or an authorized representative.A right to appeal disagreements, both within the IRS and before the courts.How does the IRS conclude an audit?An audit can be concluded in three ways:No change: an audit in which you have substantiated all of the items being reviewed and results in no changes.Agreed: an audit where the IRS proposed changes and you understand and agree with the changes.Disagreed: an audit where the IRS has proposed changes and you understand but disagree with the changes.What happens when you agree with the audit findings?If you agree with the audit findings, you will be asked to sign the examination report or a similar form depending upon the type of audit conducted.If you owe money, there are several payment options available. Publication 594, The IRS Collection Process, explains the collection process in detail.What happens when you disagree with the audit findings?You can request a conference with an IRS manager. The IRS also offers mediation or you can file an appeal if there is enough time remaining on the statute of limitations.You may find this information on this website: IRS Audits | Internal Revenue Service

If you prepared your own tax filings, pay the taxes, penalties and interest. Then hire a proper tax accountant. You could also hire a tax accountant, and have them respond to the demand letter. Bring two checks to the meeting, one for the accountant and one for the IRS.If the amount is <$5K, pay it and move on, disputing it might cost you more. Standing on principle costs money.If a professional tax accountant prepared the tax forms, it follows that he or she will advise you how to proceed. The tax form has the preparer’s name on. If the IRS sees a pattern of blatant misconduct associated with the preparers name, they will audit every tax form that preparer signed off on. Being a flagged accountant is not career enhancing.A good tax accountant will always ask you “How aggressive do you want to be..?”Short of a real audit (not just a sample review) your accountant really does not know what is the true nature of your business dealings.If your books substantially reflect your business dealings, you can be aggressive. If your books do not reflect accurately your business dealings, do yourself a favor and be stupid conservative.If your accountant tells the IRS “We prepared the forms solely on the basis of the information the client provided us…” that means they are taking no responsibility for the veracity of the information.An audit is expensive, a review far less so. A review usually just means an accountant from the outside CPA firm dicked around your office for five days, and charged you 5k for verifying some invoices.With that, the tax forms were prepared subject to review. Now they cannot throw you under the proverbial bus without first having to justify their own review.If you have international offices, then have them do a simple “consolidated financial statement”. That way they are also on the hook to answer questions. Yeah that’s another five to ten, more if you have non standard accounting entries like German reserve accounts.Point being that if you paid for a review, a consolidated financial statement, and they prepared the single member’s consolidated tax filing (where the member owns multiple LLCs) all passthroughs should square true.In which case, short of material misrepresentation or omission on your part, your accountant should solve the problem. If they charge you too much dispute the bill with the senior partner at the accounting firm: “You prepared it, why should I pay for your mistakes..?” Then don’t be an asshole and split the bill amount in two (that will cover the firms costs).If on the other hand there is plain evidence of material mis-representation and omission, and the dollar number is substantial, you will probably also need a good CPA with a law degree. Those obviously cost more than a bookkeeper from a temp agency.I am going to state the obvious, accounting is a two post no trust binomial system. Its not a binary logic system, nor is it arithmetic or mathematics.If you did not bother to take the requisite accountant classes in college, you are not qualified to so much as sign your own name on your tax forms. Consequently you are completely at the mercy of your bookkeeper, accountant and external CPA.Just like with lawyers, if you pay peanuts you get monkeys. The IRS has the authority to throw you in jail for arithmetic errors if they feel they were intentional. The IRS does not have to prove it. You on the other hand, are on the hook to prove your innocence.IGNORANCE IS NOT AN EXCUSE.If you are trying to pass object oriented programming techniques (a ruffian’s three card shuffle) as accounting, you deserve to go to jail.Thanks for the ask, I trust this addresses the problem, if not the question.

Everyone needs to read this. Slowly, and patiently, because it’s very important.Yes, the deep state does exist in the United States.Here's what it looks like when all the pieces are sewn together: It smells like conspiracy and treason.From 2001 to 2005, there was an ongoing investigation into the Clinton Foundation.A Grand Jury had been impanelled. Governments from around the world had donated to the Clintons’ “charity.” Yet, from 2001 to 2003 none of those “donations” to the Clinton Foundation were declared.Now you would think that an honest investigator would be able to figure this out.Guess who took over that investigation in 2005: None other than James Comey.Coincidence?Guess who was transferred into the Internal Revenue Service to run the Tax Exemption Branch of the IRS? None other than, Lois “Be on The Look Out” (BOLO) Lerner. Isn’t that interesting? But this is all just a series of strange coincidences, right?Guess who ran the Tax Division inside the Department of Injustice from 2001 to 2005?No other than the Assistant Attorney General of the United States, Rod Rosenstein.Guess who was the Director of the Federal Bureau of Investigation during this time frame?Another coincidence (just an anomaly in statistics and chances), but it was Robert Mueller.What do all four casting characters have in common?They all were briefed and/or were front-line investigators into the Clinton Foundation Investigation.Another coincidence, right?Fast forward to 2009.James Comey leaves the Justice Department to go and cash-in at Lockheed Martin. Hillary Clinton is running the State Department, official government business, on her own personal email server. The Uranium One “issue” comes to the attention of the Hillary.Like all good public servants do, supposedly looking out for America’s best interest, she decides to support the decision and approve the sale of 20% of US Uranium to no other than, the Russians.Now you would think that this is a fairly straight up deal, except it wasn’t, America got absolutely nothing out of it.However, prior to the sales approval, no other than Bill Clinton goes to Moscow, gets paid 500K for a one hour speech; then meets with Vladimir Putin at his home for a few hours.Ok, no big deal right? Well, not so fast, the FBI had a mole inside the money laundering and bribery scheme.Robert Mueller was the FBI Director during this time frame. Yep, He even delivered a Uranium Sample to Moscow in 2009. Who was handling that case within the Justice Department out of the US Attorney’s Office in Maryland?None other than, Rod Rosenstein. And what happened to the informant?The Department of Justice placed a gag order on him and threatened to lock him up if he spoke out about it.How does 20% of the most strategic asset of the United States of America end up in Russian hands when the FBI has an informant, a mole providing inside information to the FBI on the criminal enterprise?Very soon after; the sale was approved! Approximately 145 million dollars in “donations” made their way into the Clinton Foundation from entities directly connected to the Uranium One deal.Guess who was still at the Internal Revenue Service working the Charitable Division? None other than Lois Lerner.Ok, that’s all just another series of coincidences, nothing to see here, right?Let’s fast forward to 2015.Due to a series of tragic events in Benghazi, and after the 9 “investigations” at the House, Senate and at State Department, Trey Gowdy, who was running the 10th investigation as Chairman of the Select Committee on Benghazi, discovers that Hillary ran the State Department on an unclassified, unauthorized, outlawed personal email server.He also discovered that none of those emails had been turned over when she departed her public service as Secretary of State, which was required by law. He also discovered that there was Top Secret information contained within her personally archived email.What you may have forgotten about the Hillary Clinton email controversySparing you the State Departments cover up, the nostrums they floated, the delay tactics that were employed and the outright lies that were spewed forth from the necks of the Kerry State Department, we shall leave it with this: They did everything humanly possible to cover for Hillary.Now this is amazing, guess who became FBI Director in 2013? None other than James Comey; who secured 17 no bid contracts for his employer (Lockheed Martin) with the State Department, and was rewarded with a six million dollar thank you present when he departed his employer.Amazing how all those no-bids just went right through at State, huh?Now he is the FBI Director in charge of the “Clinton Email Investigation” after of course his FBI Investigates the Lois Lerner “Matter” at the Internal Revenue Service and he exonerates her. Nope, couldn’t find any crimes there.In April 2016, James Comey drafts an exoneration letter of Hillary Rodham Clinton, meanwhile the DOJ is handing out immunity deals like candy. They didn’t even convene a Grand Jury! Like a lightning bolt of statistical impossibility, like a miracle from God himself, like the true tough guy Comey is, James steps out into the cameras of an awaiting press conference on July the 8th of 2016, and exonerates the Hillary from any wrongdoing.Do you see the pattern?It goes on and on, Rosenstein becomes Asst. Attorney General, Comey gets fired based upon a letter by Rosenstein, Comey leaks government information to the press, Mueller is assigned to the Russian Investigation sham by Rosenstein to provide cover for decades of malfeasance within the FBI and DOJ, and the story continues.FISA Abuse, political espionage; pick a crime, any crime, chances are this group and a few others did it.All the same players.All compromised and conflicted.All working fervently to not go to jail themselves.All connected in one way or another to the Clintons.They are like battery acid; they corrode and corrupt everything they touch. How many lives have these two destroyed?As of this writing, the Clinton Foundation, in its 20+ years of operation of being the largest international charity fraud in the history of mankind, has never been audited by the Internal Revenue Service.Let us not forget that Comey's brother works for DLA Piper, the law firm that does the Clinton Foundation's taxes.The person that is the common denominator to all the crimes above and still doing her evil escape legal maneuvers at the top of the 3 Letter USA Agencies?Yep, that would be Hillary Rodham Clinton.Now, who is Lisa Barsoomian?Let’s learn a little about Mrs. Lisa H. Barsoomian’s background. Lisa H. Barsoomian, an Attorney that graduated from Georgetown Law, is a protégé of James Comey and Robert Mueller.Barsoomian, with her boss R. Craig Lawrence, represented Bill Clinton in 1998.Lawrence also represented:Robert Mueller three times; James Comey five times; Barack Obama 45 times; Kathleen Sebelius 56 times; Bill Clinton 40 times; and Hillary Clinton 17 times.Between 1998 and 2017, Barsoomian herself represented the FBI at least five times.You may be saying to yourself, OK, who cares about the work history of this woman?Apparently, someone does, because someone out there cares so much that they’ve purged all Barsoomian court documents for her Clinton representation in Hamburg vs. Clinton in 1998 and its appeal in 1999 from the DC District and Appeals Court dockets. Someone out there cares so much that even the internet has been purged of all information pertaining to Barsoomian. Historically, this indicates that the individual is a protected CIA operative.Additionally, Lisa Barsoomian has specialized in opposing Freedom of Information Act requests on behalf of the intelligence community. Although Barsoomian has been involved in hundreds of cases representing the DC Office of the US Attorney, her email address is Lisa Barsoomian at National Institutes of Health. This is a tactic routinely used by the CIA to protect an operative by using another government organization to shield their activities.It’s a cover, so big deal right? What does one more attorney with ties to the US intelligence community really matter?It deals with Trump and his recent tariffs on Chinese steel and aluminum imports, the border wall, DACA, everything coming out of California, the Uni-party unrelenting opposition to President Trump, the Clapper leaks, the Comey leaks, Attorney General Jeff Sessions recusal and subsequent 14 month nap with occasional forays into the marijuana legalization mix, and last but not least Mueller’s never ending investigation into collusion between the Trump team and the Russians.Why does Barsoomian, CIA operative, merit any mention?Because she is Assistant Attorney General Rod Rosenstein’s wife!You can pretend that the deep state doesn’t exist, but not if you keep your eyes open.