Requesting An Independent Audit Review Conference
The last step of a Texas field audit is to meet with your auditor during an exit conference. If you disagree with the final bill, what are your rights? At this point it is probably too late for a Reconciliation Conference, but you can ask for an Independent Audit Review Conference (IARC).
At Brown, PC, our tax attorneys will quickly go to work to help you resolve complex tax problems. What happens all too often is that a business does not realize it can request an IARC during a state tax audit. You must request this conference before the examination has been billed (Texas Notification of Audit Results/Exam Results). You may want to reserve your right earlier in the process, if you have concerns.
Who Completes The IARC review?
We will try not to overwhelm you with similar sounding acronyms, but the person assigned the review is an Independent Audit Reviewer (IAR). An IAR understands audit division policies, however, is not an employee of the audit division. This person is employed by the Comptroller though.
What can be addressed at during this informal conference with an IAR? Taxability issues, accounting disputes and penalty or interest waiver requests.
The Importance Of Filing Required Documents
You will be asked to submit arguments to support why you disagree with a final tax bill. Along with this, it is crucial to submit tax research and any documentation that supports your claim.
There are very few reasons that an IARC would be denied. Failing to provide required records is the main reason. Occasionally, an auditor or supervisor may try to wrongfully deny a request. The agency does monitor the amount of time taken on audits as well as how much tax revenue each auditor brings in each year. These pressures are real, but you must stand your ground if you believe errors have been made.
Redetermination Hearing: Administrative Appeals Process
The IARC is your last opportunity to contest your tax bill at the agency where your odds of a successful outcome are much higher. The Redetermination Hearing is a complex and time consuming process.
You have 60 days to make one more attempt to resolve outstanding issues with the auditor. Then your case is turned over to a Comptroller Hearings Attorney. The chances for success in administrative hearings are limited. If you have not yet consulted a tax attorney, you must do so at this point in order to bring the strongest possible case to mitigate the damage.
Facing A Significant Tax Bill?
When the amounts at risk in state tax audit are in the tens or hundreds of thousands, you need a skilled advocate to provide sound legal counsel.
At Brown, PC, we will work hard to obtain an outcome that meets your goals and limits the potential liability. Discuss your concerns about a Texas tax audit notice or field audit process with one of our knowledgeable lawyers. Call 888-870-0025 or send us an email to schedule a consultation.