IRS Audit FAQ

Questions:

• What are my chances of getting through an audit without owing additional taxes?
• I am being audited and the deadline for filing this year's return is fast approaching. Should I file?
• I am being audited and I haven't heard from the auditor for months. What can I do to get the audit over with?
• Do I have to let the IRS into my home?
• The auditor is impossible to get along with. What can I do?
• Can the IRS take my house?
• Can I make a deal with the IRS to pay less than my tax bill?
• Can I challenge the IRS if I get audited and don't agree with the result?
• How likely am I to get charged with criminal tax fraud?

Answer:

Can I make a deal with the IRS to pay less than my tax bill?

Maybe. Start by filing Form 656, an Offer in Compromise. If the IRS accepts your Offer, you can settle your tax debt by paying less than what you owe. In recent years, the IRS has accepted less than 25% of the offers submitted and often not at an amount as low as the taxpayer first offered. For more information, see Nolo's article Using an Offer in Compromise to Settle a Tax Bill.