Revenue Agent's Report - RAR

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. IRS Publication 556: Examination ...

    A document published by the Internal Revenue Service (IRS) that ...
  4. Notice Of Deficiency

    A letter from the Internal Revenue Service that advises a taxpayer ...
  5. Office Audit

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

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

    Specific Types Of Representation

    Describes exam topics related the capacity in which an enrolled agent can represent clients.
  2. Professionals

    Representation Before The IRS

    Describes exam topics covering legal authority and reference for Enrolled Agents.
  3. Taxes

    Personal Income Tax Guide: Avoiding Nasty Surprises

    By Ken ClarkThe last thing any taxpayer wants to find in their mailbox is a letter from the IRS, unless of course it holds their refund check. That's why, for many taxpayers, filing their return ...
  4. Professionals

    Secondary Authority & Research Sources

    Secondary Authority
  5. 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.
  6. 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.
  7. Professionals

    Introduction

    Introduction
  8. Taxes

    Personal Income Tax Guide: Common Filing Mistakes

    By Ken ClarkNo matter how much tax planning you do, if you screw up the actual process of filing your taxes, the ensuing penalties and time spent cleaning up the mess can quickly wipe out any ...
  9. Professionals

    Taxation And Advice

    Description of material regarding taxation and how Enrolled Agents can advise individual taxpayers.
  10. Economics

    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.
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. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center