No, you do not have to talk to the IRS during an examination unless IRS representatives need to ask specific questions. You have the right to be represented by a professional, such as an attorney, certified public accountant, or enrolled agent, who can handle the examination on your behalf. This can be done by executing Form 2848, Power of Attorney.
Legal Reasoning and Rationale:
- Right to Representation:
- According to "Subsection 7521(c)", any authorized representative with a written power of attorney can represent the taxpayer in any interview related to the determination or collection of any tax. The IRS cannot require the taxpayer to accompany the representative unless an administrative summons is issued.
- Suspension of Interview:
- Under "Subsection 7521(b)(2)", if a taxpayer states that they wish to consult with a representative, the IRS must suspend the interview. This right ensures that taxpayers can seek advice and representation during the examination process.
- Power of Attorney:
- Form 2848, Power of Attorney and Declaration of Representative, allows a taxpayer to authorize a representative to act on their behalf. This form must be properly executed and submitted to the IRS to grant the representative the authority to handle the examination.
- Taxpayer Rights:
- The IRS Publication 1, Your Rights as a Taxpayer, outlines that taxpayers have the right to retain representation and to be informed of their rights during the examination process. This includes the right to have a representative present during any interviews with the IRS.
- IRS FAQ:
- The IRS FAQ confirms that taxpayers do not have to be present during an examination unless specific questions need to be addressed by the taxpayer. Most taxpayers prefer to have a professional handle the examination, which can be facilitated by executing Form 2848.
By understanding and utilizing these rights, taxpayers can ensure that they are adequately represented and that their interests are protected during the examination process.
Sources:
§ 7521. Procedures involving taxpayer interviews
Publication 556
Publication 1 (9/2017)
IRM Part 4. Examining Process. Chapter 71. Employee Plans Examination of Returns. Section 1. Overview of Form 5500 Examination Procedures
IRM Part 4. Examining Process. Chapter 23. Employment Tax. Section 3. Employment Tax - Examination Programs and Examination Planning Procedures
