What is an IRS Exam Change?

At the end of an IRS audit, you will get an exam change. It is a two page form that explains exactly what the adjustments are. Most of the time, there will be additional documents on the back of the exam change. They give more of the details, but the real meat and potatoes are those first two pages. You can see exactly what the agent has allowed and disallowed on the tax return. It’s important to review that return speak to the auditor, and potentially speak to the manager.

If you disagree with the exam change form, you have the right to appeal it. You can appeal that form through a formal process that will be explained in the exam change form. Once you file the appeal, you will go to “Undocumented Appeals.” You will sit down with an agent and make the argument that you believe these were the expenses that weren’t disallowed and why why you believe that the auditor made a mistake. After you meet with the auditor, and the manager and the appeals agent, you then have the opportunity to file a tax court petition. There are so many bites at the apple and so many avenues to contest a potential assessment within the IRS. So don’t be nervous if you get an exam change form and you don’t understand it or you don’t agree with the IRS determination.

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Allison Soares

Allison Soares, a renowned tax attorney, excels in representing clients before the IRS, FTB, EDD, and CDTFA. With a Bachelor of Arts in Finance from the University of Wisconsin, Milwaukee, and a transformative teaching stint in Brazil, Allison’s diverse background enriches her legal expertise. She pursued law at St. Thomas University School of Law, Miami, complementing it with an MBA in accounting and forensic accounting. Further honing her skills, she obtained a Master of Laws in Taxation from the University of San Diego School of Law. As an adjunct professor at San Diego State University, Allison imparts her knowledge in tax procedures, practice, and ethics. Her accolades include being named Best of the Bar by the San Diego Business Journal and multiple Super Lawyer recognitions. Committed to community service, she volunteers with Forever Balboa Park and Friends of Balboa Park. Allison’s authoritative contributions in tax law are showcased through her publications and speaking engagements.

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