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IRS Survey, Compliance Check & Examination Defined – Paul Gaulkin CPA

person inspecting

There are three types of ways the IRS will generally check a tax return for proper accuracy and accounting. These three include the survey method, compliance check and examination. Survey Method Returns can be surveyed by the IRS without the taxpayer ever being notified. Agents can survey a return if they believe an examination would result in no material change in tax liability. This procedure is available only if the agent has not contacted the taxpayer or the taxpayer’s representative, … Read more

Return of Case to Examination Division – Paul Gaulkin CPA


A telephone conference is designed to resolve factual disputes and settle the case, any new evidence (whether deliberately withheld from the examiner or found on its own since the examination was completed) may cause the Appeals Officer to return the case to the Examination Division for further development. Return of Case to Examination Division IRM provides guidance for the handling of new information that arises during an appeal. In a case where the information was deliberately withheld from the … Read more

IRS Examination versus Collection Appeals


In an IRS examination, the facts are fixed and do not change often, whereas a collection appeal the financial information of the taxpayer is being constantly updated. This means that if something were to change involving the financial position of a taxpayer in a collection appeal, it would change the case completely. Collection Appeals An example of this could be a situation where the taxpayer receives an inheritance after they have filed for a collection appeal, which may eliminate their … Read more

IRS Early Referral Procedure for Business Appeals

Arrows and blocks

If your business is ever red flagged for an audit, it is important to know that some tax returns do not have to wait to be examined by the Examination division of the IRS. In the case that your business is being audited for employment tax issues, you can immediately refer your case to the Appeals Office of the IRS for resolution without having to wait for the rest of your audit to be conducted. Initiating an early referral is … Read more

IRS Burden of Proof Client Sample Letter

If you have a client that may be questioning who has the burden of proof in regard to IRS proceedings, I have written a standard letter for you to use. This letter outlines the basics in regard to transferring the burden of proof away from a taxpayer and onto the IRS. It is written in basic terms to help clients understand what their rights are in terms of who has the burden of proof. Basic IRS Burden of Proof Client … Read more

You Have the Right to Reject Unnecessary IRS Examinations

It is true; the IRS must operate under the rights that are given to you as a taxpayer. Some of these rights given to taxpayers are the ability to reject unnecessary IRS examinations. The general rule is that the IRS is only allowed to examine your books and records once per year. This is a very general rule though, there are many exceptions that can occur that are not applicable. One of these exceptions is a second examination of a … Read more

The IRS Is Not Allowed To Abuse Or Harass You

The Fair Tax Collection Practices Act was passed in 1998 and addresses how the IRS is allowed to treat taxpayers when trying to collect an outstanding debt. Basically the IRS is not allowed to abuse or harass any taxpayer or they will be subject to disciplinary action. If any of the provisions in the FTCP are violated you have the right to file a claim against the IRS. These provisions were put in place to protect taxpayers from being abuses … Read more