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.

BREAKING DOWN '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 TERMS
  1. IRS Publication 1

    A document published by the Internal Revenue Service that identifies ...
  2. Office Audit

    An examination of a taxpayer's records by the Internal Revenue ...
  3. Revenue Agent's Report - RAR

    A detailed document describing an IRS examiner's audit findings ...
  4. Form 2848: Power of Attorney and ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  5. IRS Publication 5 - Your Appeal ...

    A document published by the Internal Revenue Service outlining ...
  6. Appeals Conference

    A conference that a taxpayer can request with the Internal Revenue ...
Related Articles
  1. Personal Finance

    What's IRS Form 1040 For?

    Most U.S. taxpayers will be familiar with the 1040. By the end of filling it out, you'll know how much tax you owe, or what your refund is.
  2. Managing Wealth

    Make $1 Million? Expect an Audit

    If you make $1 million or more, the IRS has its eyes on you. Here's what you can do about it.
  3. Personal Finance

    How Does An IRS Audit Work?

    It doesn't automatically mean an IRS agent will be ringing your doorbell. Here are the different types of IRS audits and how to handle them.
  4. Investing

    What's an Audit?

    An audit is an objective examination of accounting records that makes sure the records are a fair and accurate representation of the transactions they claim to represent.
  5. Investing

    The Truth About IRS Tax Settlement Firms

    These companies claim that they can reduce or even eliminate what you owe to the IRS. Find out the facts behind this alluring fiction.
  6. Retirement

    Avoid An Audit: 6 "Red Flags" You Should Know

    Don't make yourself a target - steer clear of these attention-grabbing tax-filing practices.
  7. Personal Finance

    Is Your Online Tax-Prep Service Secure?

    News that even IRS-approved online tax-prep companies can fail a cybersecurity test is worrying. Here are steps to keep your personal tax data safe.
  8. Personal Finance

    IRS Refund Lost? Here's What to Do

    Don't panic. There are a number of reasons your refund might be delayed – and solutions for each.
  9. Personal Finance

    Match Your Tax Preparer to Your Tax Picture

    A tax pro can not only minimize the taxes you pay on tax day but may be able to help with other tax matters. Here's how to find the right one for you.
  10. Personal Finance

    Explaining Tax Returns

    A tax return is the form or forms used to file income taxes with the IRS.
RELATED FAQS
  1. Can the IRS audit you after a refund?

    Learn how the U.S. Internal Revenue Service (IRS) can conduct a tax audit even after a taxpayer was issued a tax refund in ... Read Answer >>
  2. What is an IRS letter audit / audit by correspondence?

    Learn about IRS letter audits, how tax returns are selected for audits and the common outcomes in the letter audits conducted ... Read Answer >>
  3. Are IRS audits random?

    Learn about how the U.S. Internal Revenue Service (IRS) conducts its tax audits based on random selection, document matching ... Read Answer >>
  4. What’s the difference between IRS Forms 1040 and 1040EZ?

    Though very similar, the differences between the 1040 and 1040EZ Forms are significant when it comes to filing your tax return. ... Read Answer >>
  5. When should my tax refund arrive?

    Read about how long it takes the IRS to process your income tax return and what factors could delay receiving your tax refund. Read Answer >>
  6. Are progressive taxes ever more unfair that flat taxes?

    Learn more about progressive taxes and flat taxes. Find out why progressive taxes may be unfair for many taxpayers and why ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center