Taxpayers Rights in Audit

Though studies estimate that only about 1% of all tax returns are actually audited each year, your lifetime chances of being questioned by the IRS are closer to 50%. If your tax return is audited, it’s important to know your rights. Refer to IRS Publication 1, Your Rights as a Taxpayer, to read about the rules the IRS must follow during the audit. It’s good to know that you are guaranteed the following liberties:

• Ask for explanations
• Record interviews
• Submit only the specific documents the IRS requests
• Legal representation at IRS hearings
• End an interview to consult a professional or do research
• Appeal findings
• Ask for an installment plan