At Serbick & Associates, we understand the significance of the Internal Revenue Service (IRS) in investigating the accuracy of federal income tax returns. The IRS’s authority is crucial to uphold the integrity of the tax collection system and prevent fraudulent filings. However, it’s vital to know that the IRS’s investigative powers have limitations, as various legal provisions, including the Internal Revenue Code (IRC) and the Constitution, define the boundaries for the IRS’s actions in determining tax liabilities and modifying returns.
Methods of Determining Accuracy: Under the IRC, the IRS has the power to assess the accuracy of tax returns through various means, such as examining records, conducting testimony under oath, and issuing administrative summonses to compel the submission of evidence if required.
Voluntary Information Sharing: Initially, the IRS usually requests taxpayers to voluntarily provide the information they need through an information document request (IDR). Taxpayers often comply with these requests to expedite the audit process.
Limits on Information Disclosure: Taxpayers are not obliged to disclose information solely based on the IRS’s request. If you choose not to share certain information for any reason, the IRS must obtain an administrative summons and a court order to compel you to provide it.
Criteria for Enforcement Order: The Supreme Court has established four criteria for a court to grant an enforcement order for an administrative summons. These criteria ensure that the IRS’s investigation serves a legitimate purpose, the information sought is relevant, the IRS does not already possess the information, and the necessary administrative steps have been followed.
Safeguarding Your Rights: If you receive an IRS Audit Letter or IRS Summons, it is crucial to seek professional assistance immediately. As an attorney-owned tax service, our experienced team at Serbick & Associates specializes in tax law and will help protect your rights, navigate the complexities of the IRS audit process, and ensure compliance with the law.
Don’t face an IRS summons or audit alone. Contact Serbick & Associates today to schedule a free consultation at (253) 265-4695. Our dedicated team is ready to provide you with expert guidance and strategic representation, safeguarding your interests throughout the process.
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