You have the right to refuse unnecessary IRS exams

It is true; the IRS must operate under the rights given to you as a taxpayer. Some of these rights given to taxpayers are the ability to decline unnecessary IRS examinations. The general rule is that the IRS can only examine your books and records once a year. However, this is a very general rule, there are many exceptions that may occur that are not applicable. One of these exceptions is a reexamination of a prior year return that has been audited to determine your current year tax liability.

What constitutes an exam?

The IRS has determined that some procedures are not, in fact, tests. If the IRS asks you to complete a questionnaire or meet with them informally, this does not constitute an examination. If you receive a letter from the IRS to participate in one of these procedures, it will generally indicate that it is voluntary. Nor will you be asked for books or records that constitute an exam.

If you are unsure whether or not you are subject to screening, it may be best to contact your legal representation and confirm. You don’t want to go to an informal meeting that is voluntary and accidentally say something you shouldn’t.

Reopening of closed exams

Only in some circumstances is the IRS allowed to reopen a case that was closed to increase your tax liability. Only in some circumstances is the IRS allowed to reopen a case that was closed to increase your tax liability. These situations include:

1. If there are indications that you have committed some type of tax fraud.

2. If there is evidence that you have misrepresented any material fact regarding your finances.

3. If it has been determined that you have been hiding funds to reduce your tax liability.

4. Some form of administrative omission has occurred.

5. Your case involved a specific error that was based on an IRS position at the time of your original examination.

Another key point is the fact that the IRS will reopen for several years if it is determined that a pattern of fraud has occurred. This means that if fraud is detected in years that have not been examined, the IRS can open other years unrelated to the fraud to check for additional concealment of fraud. In this specific situation, the burden of proof is on the IRS to prove their claims against you for fraudulent reporting.