While most persons would be hesitant to represent themselves in court, there are those taxpayers who not only prepare their own tax returns, but decide to represent themselves when audited by the IRS. The problem with a taxpayer representing themselves or using their accountant or CPA who does not specialize in working with the IRS is that the taxpayer or the inexperienced representative can be bullied by an IRS agent, be unaware of the taxpayer’s rights, and how to support a tax deduction being challenged by the IRS to avoid a tax assessment.
According to an audit report for fiscal year 2014 published by the Treasury Inspector General for Tax Administration (TIGTA), IRS managers and employees may have improperly used records of tax enforcement results in employee performance evaluations. Specifically, Section 1204(a) of the Restructuring and Reform Act of 1998 (RRA 98) provides that the IRS is prohibited from using any record of tax enforcement results (ROTERs) to evaluate employees or to impose or suggest production quotas or goals. Section 1204(b) requires IRS employees to be evaluated using the fair and equitable treatment of taxpayers as a performance standard. In addition, Sec. 1204(c) requires each appropriate supervisor to self-certify quarterly whether ROTERs were used in a prohibitive manner.
With respect to those IRS auditors and their managers who were using tax assessments as a measure of performance, did those taxpayers receive a fair assessment or one based on an over-zealous IRS agent desiring to improve his performance evaluation?
If you want to learn more about your personal tax and how to properly handle an IRS (or state) audit examination, we invite you to call 610-594-2601 today to make an appointment at our Exton PA CPA office to discuss your situation. You can also schedule a consultation at Click Here.