As a Certified Public Accountant, you may represent your clients in an IRS tax audit, and you need to know how to handle the IRS Information Document Request (IDR). It’s important to know that there are several different types of IDRs also known as Form 4564. More specifically, each IDR Form 4564 can be different per client due to the IRS requesting specific information per your clients’ tax submissions. What’s more, your response to each of these IDRs will be different.

Keep in mind that you want to get the best possible result for your client, and it may be advantageous to have an experienced tax consultant assist you in handling an IRS audit.

The IRS Investigation

You need to know a few more things about the IRS in regards to an IDR Form 4564. The first is that you should take a close look at what the IRS is actually requesting. They word their request to make you think that an expansive disclosure is required. The truth is that they need specific line items disclosed to complete their audit. This entire process can be invasive, and you want to find the simplest, cheapest way to resolve the audit for your client.

The second thing that the IRS does not include in the IDR is how to present your response. You can see how thin the tips are on their website. Now, imagine you or your client trying to decipher what the IRS needs from you and how to present that information. It’s a nightmare of a situation that you should have to do alone. That’s why hiring a tax consultant is strongly encouraged.

How Does the IRS Use Form 4564?

The IRS tends to use IDR Form 4564 for more serious investigations. This means that they are investigating income, deduction, or other tax-related issues that have been elevated through their internal process. The goal of submitting Form 4564 is to prove your case for what you filed or are getting back as a deduction, but this can be difficult for the two big reasons listed above.

 

 

The best course of action if your client has received an IDR Form 4564 is to contact an experienced, knowledgeable tax consultant. Without one, you may miss a pertinent piece of information or respond incorrectly, causing your client an even bigger headache.

The IRS Requests Information

You’ll need to be aware of the information that the IRS requests from you. An IRS audit is no joke; it’s a serious undertaking that could cost your client a ton if you even submit one document incorrectly. That’s why it’s imperative that you call a tax consultant for assistance in gathering and submitting the proper documents, general and specific to the IRS.

Tax Consultant Jeffrey Anton Collins

After decades of serving as a tax attorney, Jeffrey Anton Collins is here to help CPAs across the country properly represent their clients in tax audits. Handling an IRS tax audit is not an easy task. It requires direct experience with the process so that you can get the best result for your client. Jeffrey Anton Collins has that experience. He worked within the IRS and as a tax attorney. He knows both sides of the equation. Contact your tax consultant today to get started.