DEFINITION of 'Revenue Agent's Report - RAR'

A detailed document describing an IRS examiner's audit findings and stating the amount of deficiency or refund the agent found the taxpayer to owe or be owed. Taxpayers have the right to disagree with a revenue agent's report and can choose to fight the agent's findings through a formal protest to the IRS Appeals Division, by appealing to the U.S. Tax Court or by paying the new assessment but then suing for a refund.

BREAKING DOWN 'Revenue Agent's Report - RAR'

The IRS notifies state tax authorities when it issues an RAR. State laws require that if the federal government changes a taxpayer's liability, the taxpayer must file an amended state return. States have this requirement because state tax liability is based on federal tax liability. If a taxpayer is deemed to owe more federal tax than what was paid, the taxpayer likely owes more to the state as well. This statute applies whether the taxpayer is an individual or a business. If the taxpayer pays tax in multiple states, the compliance process can be quite burdensome.

RELATED TERMS
  1. IRS Publication 5 - Your Appeal ...

    A document published by the Internal Revenue Service outlining ...
  2. IRS Publication 1

    A document published by the Internal Revenue Service that identifies ...
  3. Notice Of Deficiency

    A letter from the Internal Revenue Service that advises a taxpayer ...
  4. IRS Publication 556: Examination ...

    A document published by the Internal Revenue Service (IRS) that ...
  5. Office Audit

    An examination of a taxpayer's records by the Internal Revenue ...
  6. Deficiency

    Conceptually, the numerical difference between the amount of ...
Related Articles
  1. Taxes

    Getting A Job As The Tax Man

    If you'd like the IRS to pay you some money for a change, consider a career working in taxes.
  2. Taxes

    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.
  3. Taxes

    Start Over With The IRS

    If you're struggling to pay back taxes, try a fresh start with the IRS. They really can help.
  4. Taxes

    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.
  5. Taxes

    Form 9465: Don't Pay Your Back Taxes Without It

    This form can lighten your tax load if you owe Uncle Sam.
  6. Taxes

    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.
  7. Taxes

    What is a Tax Liability?

    Tax liability is the amount of money a person or entity owes to the government as the result of a taxable event.
  8. Taxes

    Give Your Taxes Some Credit

    A few tax credits can greatly increase the amount of money you get back on your return.
  9. Taxes

    New Tax Rules Target The Top Tax Bracket

    The American Taxpayer Relief Act brings about new tax rules for the wealthy that people such as Warren Buffett have been calling for over the last few years.
  10. Taxes

    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.
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. Can the IRS take your house?

    Understand why a person would have his home seized by the IRS and what he can do to avoid it. Learn about the seizure process ... 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. How can I tell when a real estate agent might be lying to me?

    Find out what real estate agents are likely to lie about, the reasons for the lies and how to protect yourself from unscrupulous ... Read Answer >>
  6. Can the IRS withhold your tax refund?

    Learn about the instances in which the IRS can levy your federal and state income tax refunds, and find out how the levy ... Read Answer >>
Hot Definitions
  1. Graduate Record Examination - GRE

    A standardized exam used to measure one's aptitude for abstract thinking in the areas of analytical writing, mathematics ...
  2. Graduate Management Admission Test - GMAT

    A standardized test intended to measure a test taker's aptitude in mathematics and the English language. The GMAT is most ...
  3. Magna Cum Laude

    An academic level of distinction used by educational institutions to signify an academic degree which was received "with ...
  4. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  5. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  6. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
Trading Center