How to Handle an IRS Interview or Summons

Dealing with the IRS can be intimidating, but having some knowledge about your rights and responsibilities can help make the process less stressful. This article provides practical tips on how to handle an IRS interview or summons.

What is an IRS Summons?

An IRS summons is a legal order for you to appear before the IRS and provide testimony and/or produce documents relevant to an investigation. The IRS may issue a summons as part of either a civil or criminal tax investigation. Some key things to know about IRS summonses:

• The summons must be properly served – either in person or by certified mail.
• You are required by law to comply with a summons or you could face penalties.
• Reasons you may be summoned include an audit, investigation into unreported income, or failure to file tax returns.
• The summons will specify what information you need to provide and when and where to appear.
• You may be able to challenge the summons if you have a valid legal basis.

If you receive an IRS summons, don’t ignore it. Contact a tax professional to understand your rights and obligations.

How to Respond to an IRS Summons

If you receive an IRS summons, here are some steps to take:

1. Review the summons carefully – Make sure you understand what information is being requested and the deadline for responding.
2. Contact a tax attorney – A tax lawyer can help determine if you have grounds to contest the summons and represent you before the IRS. Grounds to challenge a summons may include that the information requested is protected by privilege, already in the IRS’s possession, or the IRS failed to follow proper procedures.
3. Negotiate with the IRS – Your lawyer may be able to negotiate with the IRS to narrow the scope of the summons or allow additional time to respond. Being proactive can demonstrate cooperation.
4. Comply as required – If you cannot successfully contest the summons, you must provide the requested information by the deadline. Failure to comply can lead to further enforcement action.
5. Request the interview be recorded – You have a right to an audio recording of any in-person IRS interview. This can help protect your rights.
6. Attend the interview and answer questions truthfully – Lying to the IRS can lead to criminal charges. Object to inappropriate questions.
7. Get legal advice before signing anything – Don’t sign any affidavits or waivers without your lawyer reviewing them first.

Responding properly to an IRS summons is critical, so don’t go it alone. Consult a tax controversy attorney to protect your rights.

What to Expect During an IRS Interview

If you are summoned by the IRS for an in-person interview, knowing what to expect can help you prepare:

• The interview will likely focus on items the IRS finds questionable in your tax returns.
• The IRS agent may request additional documentation to support items on your returns.
• You have the right to record the interview after requesting to do so in advance.
• The IRS will require you to swear an oath to testify truthfully during the interview.
• You can have your lawyer present, but the IRS may meet with them separately.
• The interview may feel pressure-filled or intimidating, so stay calm.
• Don’t guess – if unsure of an answer, request time to follow up.
• You have the right not to self-incriminate if the investigation is criminal.

While IRS interviews feel adversarial, being cooperative can improve the outcome. Answer questions directly and provide requested documents in a timely manner. Let your tax attorney handle any objections.

Your Rights During an IRS Interview

You have important rights during an IRS interview, including:

• The right to request the interview be rescheduled if the scheduled time won’t work for you and your representative.
• The right to record the interview after making a timely request.
• The right to consult with your lawyer during questioning and have them present for the interview.
• The right to end the interview at any time unless you are under a court order.
• The right not to provide self-incriminating testimony if the investigation is criminal.
• The right not to be harassed or abused by the IRS agent.
• The right to review and make corrections to the IRS’s notes or transcript of the interview before signing.
• The right to follow up in writing if you need to amend your testimony after the interview.

Exercising your rights during an IRS interview can help you avoid making costly mistakes. Politely stand your ground if the agent oversteps.

How to Prepare for an IRS Interview

Thorough preparation is key to successfully handling an IRS interview. Strategies include:

• Consulting with your tax lawyer to understand the focus of the investigation and develop response strategies.
• Organizing all relevant tax records, such as prior year returns, receipts, invoices, and bank statements.
• Reviewing your past returns to refresh your memory on any questionable items.
• Writing a timeline of key events related to your business or taxes.
• Anticipating the questions you are likely to be asked and preparing responses.
• Rehearsing your interview answers but avoiding memorized scripts.
• Requesting an audio recording of the interview in advance.
• Getting a good night’s sleep before the interview.

Proper preparation will help you feel confident and respond accurately during an IRS interview. Avoid going into it cold.

What Not to Do During an IRS Interview

There are also some key mistakes to avoid when being questioned by the IRS:

• Don’t ignore an IRS summons for an interview. Failure to appear can lead to serious consequences.
• Don’t go into the interview alone without your tax lawyer present.
• Don’t lie or provide false documentation to the IRS agent.
• Don’t voluntarily disclose new information not requested by the IRS.
• Don’t answer questions too quickly without thinking them through.
• Don’t speculate or guess answers if you are unsure.
• Don’t answer inappropriate or irrelevant questions.
• Don’t sign any affidavits or statements without your lawyer reviewing them.

A misstep during an IRS interview can create legal exposure. Let your tax attorney handle objections while you focus on answering truthfully.

After the IRS Interview

Once the IRS interview is over, be sure to follow up appropriately:

• Review the IRS agent’s notes with your lawyer to ensure accuracy.
• Request a copy of the audio recording for your records.
• Send the IRS agent a follow-up letter if you need to amend your interview answers.
• Provide any additional documents or information requested as soon as possible.
• Memorialize your recollection of the interview while it’s still fresh.
• Discuss next steps with your lawyer such as filing amended returns or awaiting the audit result.
• Begin correcting any tax issues identified to avoid further IRS scrutiny.

Following up professionally after an IRS interview can help demonstrate cooperation and responsibility.

If You Disagree With the IRS Audit Result

You have options if you disagree with the outcome of an IRS audit following an interview:

• Request a manager review – Ask for an IRS manager to review your case if you believe the auditor erred.
• Appeal the audit decision – You can file an administrative appeal within 30 days of receiving a notice of deficiency.
• Request an appeals conference – The IRS Office of Appeals provides an independent review of audit results.
• Petition U.S. Tax Court – You can challenge the IRS position in court if you disagree with the appeals outcome.
• Negotiate a settlement – The IRS may agree to settle for a reduced amount if litigation risks exist.

Contesting an IRS audit should be based on the merits of your case, not just a desire to avoid taxes. An experienced tax attorney can advise you on the best options.

Avoiding IRS Interviews and Audits

The best way to handle an IRS interview or audit is to avoid having one in the first place. Some tips:

• File timely and accurate tax returns that are fully supported.
• Keep meticulous tax records organized by year in case of an audit.
• Respond promptly to all IRS notices to avoid escalation.
• Address any questionable items proactively via amended returns.
• Have a tax professional review your returns annually for errors.
• Don’t take overly aggressive tax positions that could draw scrutiny.

While the IRS will always conduct some random audits, smart tax preparation can reduce your chances of being targeted.

The Bottom Line

Being summoned by the IRS for questioning can be unsettling, but having professional representation and following the proper protocols can help you successfully manage the process. Don’t ignore an IRS summons, but exercise your rights during any interview. With the right tax lawyer guiding you, an IRS audit doesn’t have to become a nightmare scenario.