IRS Publication 556: Examination Of Returns, Appeal Rights And Claims For Refund
 |
Definition of 'IRS Publication 556: Examination Of Returns, Appeal Rights And Claims For Refund'A document published by the Internal Revenue Service (IRS) that provides information on the audit process, a taxpayer's right to appeal and how a taxpayer can claim a tax refund. The IRS uses a software to assign a score to both individual and corporate tax returns, with high scores more likely to result in further review. It can also be pulled for review if information in the return does not match other data sources, such as a Form 1099 or a W-2.If any changes, such as additional taxes due, are proposed by the IRS, the taxpayer can either agree to (and pay) or appeal the decision. If the decision is appealed it can be fast-tracked for resolution. |
 |
Investopedia explains 'IRS Publication 556: Examination Of Returns, Appeal Rights And Claims For Refund'The IRS reviews tax returns for a variety of reasons, and may not make any adjustment to the reported tax figure. If the IRS determines that additional taxes should be paid, taxpayers can hire an Enrolled Agent, attorney or other sanctioned person to represent themselves in IRS proceedings.Additional information on the audit process is available in IRS Publication 1, Your Rights as a Taxpayer. |
Related Definitions
Articles Of Interest
-
Surviving The IRS Audit
Keeping thorough records and knowing the penalties make this experience easier than you'd expect. -
Don't Let Inaccurate Tax Forms Get You Audited!
Copying in numbers directly from your tax forms can end up with you paying more (or less) taxes than you owe. -
Avoid An Audit: 6 "Red Flags" You Should Know
Don't make yourself a target - steer clear of these attention-grabbing tax-filing practices. -
IRS Asset Seizures: Could It Happen To You?
If you can't pay your taxes, know that the IRS has many avenues for collecting what you owe. -
Tax Court: Your Last Resort
Appealing an unfavorable or unfair tax ruling may be your last chance to save your finances. -
How To Appeal Your IRS Audit
The auditor's review isn't always the last word. Many taxpayers who are audited can successfully appeal their audits and save thousands of dollars. -
Has Income Tax Become A Class Tax On The Poor?
With more than 33% of American families falling close to the poverty line despite their adult members holding full-time employment, a rising number of citizens are being forced to pay a rate ... -
How The 2014 Obama Budget Could Affect Your Finances
Depending on which estimate you believe, Obama's proposed budget would raise the tax bill of a household with a yearly income of $50,000 to $75,000 between $63 and $100 per year. However, that’s ... -
Austerity: When The Government Tightens Its Belt
When a government tightens its belt in tough economic times the entire nation feels the squeeze. -
Inaccurate Tax Return, Now What?
If the IRS finds errors, it will cost you. Find out how to fix them, and how to prevent them in the first place.
Free Annual Reports
