How To Read an IRS Revenue Agent Report
If you’ve been through an IRS audit, you know that one of the most important documents you receive at the end is the Revenue Agent Report (RAR).
Many taxpayers may not know where to start when it comes to reading their Revenue Agent Report.
John Milikowsky, the founder of Milikowsky Tax Law, explains how to read your Revenue Agent Report in detail.
Check out the video below for more information:
In this article, we walk you through the elements that make up an IRS Revenue Agent Report.
First, What is an IRS Revenue Agent Report?
The Revenue Agent’s Report is a detailed document describing an IRS examiner’s audit findings. Additionally, the Revenue Agent Report states “the amount of deficiency or refund the agent finds the taxpayer to owe or be owed, respectively.” Taxpayers have the right to disagree with a revenue agent’s report. If taxpayers disagree, they can challenge the agent’s findings through:
- A formal protest to the IRS Office of Appeals division by appealing to the U.S. Tax Court, or
- Paying the new assessment but then suing for a refund.
How to Read a Revenue Agent Report
Audit InformationThe first section of the Revenue Agent Report is called the “Audit Information.” This includes basic information about the audit, such as the type of audit (field or correspondence), the date the audit began, and the taxpayer’s name and address. Learn more about the four types of IRS audits and how to navigate them.
Audit ResultsIn this section, the revenue agent lists their findings. Each finding will include:
- A description of the issue
- The amount of money in question
- The proposed changes to the tax return