How to Challenge Questionable IRS Investigation Tactics

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Last Updated on: 24th September 2023, 05:47 pm

Dealing With a Tax Audit? Know Your Rights and Don’t Be Afraid to Speak Up!

Getting audited by the IRS can be a total nightmare. Believe me, I’ve been there! The letters start coming in, then the scary phone calls demanding documents and information. It’s enough to make anyone feel intimidated. However, you shouldn’t let them bully you! As a taxpayer, you actually have quite a few rights that protect you during an audit.I’m going to walk through exactly what those rights are, what sort of shady tactics the IRS might try to pull, and how you can effectively stand up for yourself. I’ll even share some tips on documenting everything (critical!) and filing complaints if needed.So take a deep breath – you’ve got this! Let me break it down for you…

Your Rights During a Tax Audit

The IRS likes to act like they can just do whatever they want during an audit. But us taxpayers actually have quite a few important rights guaranteed by law. Here’s a quick overview:

• You have the right to professional and courteous treatment by IRS employees. If they are rude or abusive – not okay!
• You have the right to privacy and confidentiality about the audit details. They can’t go telling your business to the whole town.
• You have the right to legal representation by a tax pro or attorney. Don’t let them pressure you to go it alone!
• You have the right to record in-person meetings or phone calls (with advance notice). Protect yourself with documentation.
• You have the right to appeal IRS decisions you disagree with. You always have recourse if things don’t seem fair.

Pretty good stuff, right? Memorize these – knowing your rights makes it much easier to identify any IRS funny business.

Fishy Tactics the IRS May Try to Pull

Now that you know your rights, what are some sketchy tactics you should keep an eye out for? Here are some common ones:

• Excessive document requests – asking for stuff that’s totally irrelevant to your audit’s scope or time period. Just fishing for extra dirt!
• Threats or intimidation – warnings about criminal charges or other scary consequences if you don’t comply.
• Misleading statements – outright lying or exaggerating consequences to pressure you. Super unethical and probably illegal too!
• Unnecessary delays – dragging their feet on providing info you need or making decisions. Classic stonewalling.
• Lack of explanation – not giving clear reasons for requests or decisions. Red flag!
• Refusing representation – saying you can’t have your tax pro or lawyer present. Major violation of taxpayer rights.

I know this stuff makes your blood boil just reading it! But don’t simmer in silence – speak up! Point out exactly how they are violating your rights and/or IRS rules.

Document EVERYTHING!

If you want to call out the IRS for their B.S. tactics, you need to document everything extensively. Here are some tips:

• Keep super detailed notes about every single conversation – dates, times, names, details discussed. The more exact, the better.
• Make copies of any documents you give them. Organize them neatly so you can reference them later if needed.
• Follow up every verbal conversation in writing, like with a “per our call today, you requested…” email. Creates a helpful paper trail.
• Record in-person meetings or phone calls if you can legally (check your state laws!). Transcribe if needed.

Basically, you want to be able to prove exactly what happened, and when. This will be clutch if you need to file an official complaint down the road.

Filing Complaints About IRS Agent Misconduct

If you feel an IRS agent has clearly violated rules or your rights, you can file an official complaint with the IRS:

• Submit Form 14157 detailing the inappropriate behavior and your desired resolution.
• Send copies of any supporting documentation.
• Provide your contact info so they can follow up with you.
• Keep a copy for your records!

Complaints go to the IRS Complaints Office and should get a response within 45 days.If an agent is being really abusive, you can also file a complaint requesting an investigation with the Treasury Inspector General for Tax Administration (TIGTA). They handle investigations into IRS employee misconduct.You’ll want to gather all your documentation and contact your representative in Congress for help getting the ball rolling. The more evidence you have, the better!

Appealing Audit Findings You Disagree With

What if you disagree with the actual audit findings and want to appeal? You’ve got options:

• Request a manager review if you disagree with an IRS finding or request.
• Submit a formal appeal request if the manager doesn’t resolve it.
• Provide new information/evidence to support your appeal.
• Explain how the decision causes undue hardship.

You can keep appealing up the chain of command until you get a fair resolution. If you finally need to, take it to tax court!Having thorough documentation and a tax pro on your side will make mounting a successful appeal much easier. So don’t let the IRS steamroll you!

Request a New Agent

What if it’s just one specific agent causing problems? Request a new one be assigned to your case!

• Submit the request to their manager in writing.
• Give specific examples of unprofessional behavior or taxpayer rights violations.
• Explain how it prevents fair case resolution.
• Request a new agent who can provide an unbiased review.

Be persistent and keep moving up the chain of command until someone addresses the issue properly. Don’t take no for an answer!

Getting Help From a Tax Pro

Having an experienced tax pro or attorney in your corner can make all the difference during an audit. Here are some key benefits:

• They can handle all IRS communication on your behalf. No more stressful calls and letters!
• They know how to expertly navigate IRS procedures and requirements.
• They can identify any questionable tactics and advise you on responding.
• They can help formally document and submit appeals or complaints.

Basically, the right tax professional can save you tons of headaches and stress during the audit process. They’ll have your back! So don’t be shy about getting help.

The Bottom Line

Dealing with the IRS can feel intimidating, but knowledge is power. Understand your rights, watch for shady tactics, document everything thoroughly, and don’t hesitate to file complaints or appeals if needed.With the right evidence and persistence, you can get a fair shake even when challenging the IRS. And if it ever gets to be too much, don’t be afraid to hand it off to a tax pro. They can take it from there while you focus on more pleasant things in life!Whew, that ended up being quite the novel! Hopefully it gives you a helpful playbook if you ever find yourself facing the tax audit boss battle. You’ve got this!