Revenue Agent's Report - RAR

AAA

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.

INVESTOPEDIA EXPLAINS '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. Audit

    1. An unbiased examination and evaluation of the financial statements ...
  2. Internal Revenue Service - IRS

    A United States government agency that is responsible for the ...
  3. Loophole

    A technicality that allows a person or business to avoid the ...
  4. Office Audit

    An examination of a taxpayer's records by the Internal Revenue ...
  5. Taxes

    An involuntary fee levied on corporations or individuals that ...
  6. Notice Of Seizure

    A letter or written notice from the Internal Revenue Service ...
Related Articles
  1. Insurance

    Getting A Job As The Tax Man

  2. Taxes

    How To Appeal Your IRS Audit

  3. Taxes

    Surviving The IRS Audit

  4. Retirement

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

Hot Definitions
  1. Capitulation

    When investors give up any previous gains in stock price by selling equities in an effort to get out of the market and into ...
  2. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  3. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  4. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  5. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  6. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
Trading Center