• IRS Attempts to Reduce Warnings to Taxpayers about Making Third-Party Contacts

  • Aug 14 2024
  • Durée: 32 min
  • Podcast

IRS Attempts to Reduce Warnings to Taxpayers about Making Third-Party Contacts

  • Résumé

  • The IRS tries to gather as much information and documentation as possible when conducting an audit. It attempts to get the data directly from the taxpayer, but it often turns to other sources, too. This is called making third-party contacts. The IRS has been criticized over the years for giving insufficient warnings to taxpayers before starting third-party contacts, and Congress took notice. It enacted a law creating safeguards against inappropriate third-party contacts and later strengthened it. Now, the IRS has issued proposed regulations that severely undercut historical taxpayer protections. This article analyzes the filing and record-keeping duties of taxpayers, information-gathering tools of the IRS, and changes in protections for taxpayers and third-parties over the years.

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