The ability to accurately and effectively interpret IRS transcripts is fundamental to tax controversy planning. Astute practitioners are able to analyze taxpayers’ transcripts and determine future IRS actions with reasonable accuracy. This foresight allows advocates to devise powerful tax strategies beneficial to their clients.
Today our team participated in a day training session dealing with the practical aspects of IRS transcript analysis. Some of the valuable topics covered included:
- Determining the IRS’s likely future actions based on transcript information
- Challenging Substitutes for Returns (SFRs)
- Discharging back taxes and abating penalties
- Shortcomings in transcripts of longtime noncompliant/non-filing taxpayers
Requesting IRS transcripts provides a roadmap in a tax controversy case and should be one of the first steps your legal representative should take.
