The IRS conducts financial audits to verify information provided in return forms. If you run a business or are self-employed, such a procedure can affect operations and cause significant losses. The IRS offers a Fast Track settlement program to help you solve pending tax disputes.
This procedure also allows you to avoid lawsuits and lengthy administrative processes. Here, we provide more details to help you understand what a tax audit is and how the Fast Track Settlement program (FTS) works.
What is a Tax Audit?
A tax audit is a comprehensive examination of your return documents and information. This process aims at confirming if you paid a proper amount and providing the correct details when filing taxes.
The IRS mainly conducts audits if they suspect you did not disclose some income. They can also investigate you due to suspicious deductions and claiming refunds under an incorrect category.
When undergoing a tax audit, the IRS may use either of their three procedures, which are:
- A mail audit
- Field audit
- Office audit
If the IRS chooses a mail audit, they will ask you to send more documents based on the issue in question. They will then use these files to counter-check your tax records.
An office audit involves the IRS asking questions about your business and its accounts. The audit officer may also require some documents like bank statements and receipts. Besides, you may bring your accountant or a FinishLine Tax Solutions attorney for the questioning.
A field audit is the most comprehensive process the IRS uses to examine business owners. In most cases, this process will take place in your office or home. Unlike other audit types, the IRS may question multiple parties during such an examination. The officers will also go through most, if not all, the aspects of your tax returns.
How to Apply to a Fast Track Settlement Program?
Tax audit exams can consume a lot of time and affect your business. If the IRS rules you need to adjust your tax returns, you may also need to file an appeal to prevent significant debt.
Determine if you qualify for a Fast Track Settlement program by contacting an expert from FinishLine Tax Solutions.
If eligible, submit your application by filling out IRS Form 14017. This document serves as a request for consideration to the FTS program. Once you provide all the needed details, upload it to the IRS site or send it to the Appeals Team Manager in your locality.
These will write a Summary of Issues, which provides the same information as a Notice of Proposed Adjustment. They will also file your FTS application and forward it to the IRS Compliance team.
Once the IRS receives your request, they will examine it alongside the documents provided by the appeals team. The final step is determining if you qualify for FTS to provide feedback.
How Does the Fast Track Program Work?
If you qualify for FTS, the IRS will provide alternative means to resolve your tax dispute. An appeals officer will also help you negotiate for a suitable method.
When determining an ideal resolution technique, you will meet with the IRS representative and the appeals officer. This session will also include decision-making authorities and financial experts to help with the settlement process.
Once the conference ends, the tax appeals officer will report case developments to the IRS. This process allows them to communicate details like:
- A brief description of the issue in question
- The dispute amounts
- Plan of action
They can also communicate an update of the issues discussed in the meeting.
The main benefit of an FTS program is that it speeds resolving tax issues. You can also avoid opening an appeal after closing IRS examinations with unresolved issues.
Contact FinishLine Tax Solutions to Apply for Fast Track Settlement
Applying to the FTS program without legal help is tricky. At FinishLine Tax Solutions, we have attorneys who can help you determine if you qualify for an alternative dispute resolution method.
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