IRS Notice | Understanding IRS Audit Form 4564.

IRS Notice Forms Audit Form 4564

The IRS uses Form 4564 to request information from you in an audit. The Form is called an Information Document Request (IDR). The questions the IRS asks can be intrusive. They imply that you have to supply a mountain of evidence & come in for questioning. Understand, just because the IRS requests it doesn’t mean you have a legal responsibility to provide it.

You must resist IRS requests for expansive disclosure. Instead, you must pay close attention to what lines on the return are being questioned and prove your case in the most direct, easiest & cheapest way. The IRS won’t show you how to present your evidence. Instead, they will continue to ask more intrusive questions.

You must provide unquestionable evidence of each item being investigated, but you’re not required to agree to open-ended questioning by the IRS. In this way, you will narrow down the issues & then attack those issues directly.

Form 4564 is usually used for more serious investigations, and they often ask for more information than they need from you. But, you must prove your case with the least effort and evidence possible.

Look carefully at the IRS questions and the lines of your return being examined.

Know Up To 6 Months in Advance That You Are Going to be Audited, With Audit Alarm Real-Time Monitoring

Income Issues: The IRS will determine your income by reviewing the Wage & Income Transcripts, your bank records & your lifestyle. It would help if you got the Wage & Income Transcripts from the IRS Agent or by calling 1-800-829-1040 so you can compare them with your records.

The IRS will declare all deposits into a bank or other accounts as income unless you can prove otherwise.

By reviewing your assets & purchases, the IRS will estimate if the income you reported compares to your lifestyle.

Deduction Issues: The IRS Agents often deny deductions because the evidence is insufficient, is poorly organized, or lacks substantiation. Each item questioned on your return has unique legal evidence requirements – more than just a few receipts, canceled checks, or even an accounting software program. To prove your case, you must produce titles, insurance policies, purchase & transaction records, license information, employment records, etc. Each issue requires its own unique approach.

Lost Documents: If you didn’t keep your records or the records are lost or unavailable, we can still re-create your case. Unless you dealt solely in cash, bank records & credit card records could be obtained. Even if you used a lot of cash, we can get affidavits or use industry standards to arrive at a reasonable figure.

What is my first step?

If you received a letter or notice, a decision has to be made. Do you feel confident to handle this situation on your own? If it is a simple issue and you already know the answer, call or write them. If the problem is more complicated, you need to hire a Certified Tax Resolution Specialist. The IRS or State will take full advantage of your lack of knowledge and experience.

What is Your Next Step?

The next step is to determine if the notice was sent in error. Do you have an outstanding tax liability? Do you have unfiled or incomplete returns?

Is There a Time Limit?

Yes, each letter or notice from the IRS or State will indicate a date you MUST contact them. If you need more time, call the number on the notice or letter and request an extension. Please DO NOT ALLOW the time to expire without contacting them or hiring a representative to contact them for you.

What You Don’t Want to Do!

What you don’t want to do is nothing. Your tax problems will only get worse if you ignore them. If you cannot pay, there are several potential solutions available to those otherwise in compliance. In compliance means having all tax returns filed and any balances paid or on a payment plan. If you have outstanding debts or unfiled returns, you need to hire a Certified Tax Resolution Specialist.

Get Some Help

If you don’t know how to address the issue(s), have unfiled return/unpaid balances or just done feel confident, let the experts at Legacy Tax & Resolution Services represent you. Work with our team of Certified Tax Resolution Specialists to resolve your issue(s) quickly. Best of all, you don’t have to talk to the IRS or State; we can speak on your behalf.

Stop the stress and resolve your problems. Call 800-829-7483

For more information, see Frequently Asked Questions- Top 10 Audit Mistakes