If you get any notice from the IRS, pay attention. You might be nervous, or you might not know what the IRS letter means. But you must read the IRS notice and determine what the government is asking of you – or you could land with big penalties.

One common IRS notice many taxpayers don’t understand is called an Information Document Request (IDR).

A Form 4564 IDR is a formal request for certain information and documents related to your tax return or financial activities. When the IRS sends you an IDR, their goal is to gather additional information and evidence to ensure your compliance with tax laws and regulations.

An IDR is typically sent to a taxpayer at the start of a tax audit or examination of your tax return. You might also receive one later in the process if more information is needed.

According to the IRS, an IDR is “intended to encourage collaboration between the taxpayer and the IRS to discuss and determine the necessary information for proper issue development.”

But Really, Why Did You Receive an IDR from the IRS?

Essentially, you received an IDR when the IRS needs more details about your tax return for an audit.

There are many reasons you might be flagged for an audit, such as:

• You have mathematical mistakes on your tax return.
• Something looks fishy on your return and the IRS believes you have understated your income.
• You run a business and have more losses than the agency would expect is reasonable, or you seem to have suspicious expenses.
• You were selected randomly through a computer screening process conducted by the IRS.
• Your return is also connected to other taxpayers who are currently involved in an audit.

If You Received an IDR, What Should You Do?

First and foremost, if you receive an IDR or any letter from the IRS, open it and read it – pronto. Resist the urge to leave it unopened and hide it in a drawer. You might be surprised at how many clients come to our office with a pile of unopened IRS envelopes.

If you are involved in a tax audit and need help responding to an IDR, talk to a skilled tax attorney now. A qualified tax attorney can help interpret your IDR, ensure compliance with IRS requirements, and advocate on your behalf.

With your IDR in hand, here are some tips on what to do next.

1. Read Your IDR Carefully: Thoroughly review the IDR to understand the specific documents or information requested. Make sure you understand each item and prepare to provide accurate, detailed responses.
2. Gather the Required Documents for Your Response: Collect all relevant documents and organize them systematically. Proper organization can streamline the response process and demonstrate your cooperation with the IRS.
3. Prepare Responses: Be complete and accurate in your responses. An attorney can help you reply in the most effective way for your situation. Every IDR will be a little different, so you must be sure to review “Part 2: Description of documents requested.” That is where you will see exactly what the IRS is requesting for your tax audit. Documents might include bank statements, receipts, invoices, and other relevant records.
4. Submit the Requested Information to the IRS: Follow the instructions and submit all requested documents and information. You’ll notice checkboxes on the IDR form, which might indicate how you’re supposed to submit the documents, such as “At Next Appointment” or “Mail in.” You might also be able to submit electronically. Be sure that all of your documents are clearly labeled as well.
5. Meet the Deadline for your Information Document Request: When it comes to anything due to the IRS – an IDR included – deadlines matter. If you don’t reply or leave out requested documents, you could be stuck with further issues with the IRS. If you cannot meet the deadline for some reason, communicate with the IRS to seek an extension.
6. Keep Copies of All IRS Submissions: Make copies of all the documents you submit to the IRS for your records. That will be helpful in case there are any discrepancies or if you need to refer back to the information in the future.

Get Representation from an Experienced IRS Tax Audit Attorney

Like anything tax-related, responding to an IDR from the IRS requires careful attention to detail and compliance with their requests. Take the process seriously and ensure that you provide detailed information to avoid any problems with the IRS.

Navigating an IRS audit, including responding to IDRs, can be complex and stressful.

A qualified tax attorney brings specialized knowledge of tax laws and regulations and can help you respond to your IDR strategically and effectively, while protecting your rights and minimizing potential liabilities and penalties.

Your tax lawyer will talk to the IRS on your behalf, so you don’t have to speak to the IRS agents directly.

Contact The Law Offices of Alyssa Whatley now and get experienced help with your tax audit and IRS IDR Request.