Video: Introduction to Interacting with the IRS

In this lesson, Nick Palazzolo, CPA, dives into the ins and outs of interacting with the IRS, particularly when it comes to audits. By addressing the self-assessment tax system in the United States and the role the IRS plays in ensuring compliance, he sets the stage for understanding how and why audits happen. With a dash of humor and relatable anecdotes, Nick demystifies the various triggers that might lead to an IRS audit, from random selection to reported discrepancies. He navigates through different types of audits, from simple correspondence audits all the way to full-blown field audits, ensuring clarity on what each entails. Nick further helps demystify the post-audit process, explaining possible outcomes and a taxpayer's options for agreement, appeal, or mediation. The lesson wraps up with practical tips on maintaining accurate records to support tax return information, emphasizing the importance of being prepared in the event of an audit.