Research - Administrative Procedures
The U.S. Federal Income tax system is based primarily upon an assumption of self-assessment. All persons with with taxable income that exceed a specific amount are required to prepare an accurate statement of annual income and to remit in a timely fashion any amount of tax that is due. The IRS uses the examination of returns as an enforcement device to promote such voluntary compliance with the Internal Revenue laws. Because only a small number of tax returns can be audited each year, the IRS attempts to select for examination only those returns that will generate additional revenues for the Treasury. It primarily relies upon sophisticated statistical models and computer technology to identify those returns that will be audited. In addition, a number of returns are manually selected for examination at an examiner's discretion.
Choose a topic listed below to learn more:
Preliminary Review of Returns
The Examination Process
The Appeals Process
Additional information on these topics and related matters is available through
several IRS publications, including:
Publication 1 - Your Rights as a Taxpayer
Publication 5 - Your Appeal Rights and How To Prepare a Protest if You Don't
Agree
Publication 556 - Examination of Returns, Appeal Rights, and Claims for Refund
Publication 1546 - The Problem Resolution Program of the Internal Revenue
Service