Revenue Agent's Report (RAR)
Definition of 'Revenue Agent's Report (RAR)'
The RAR is an important document because it provides taxpayers with a formal notification of the IRS's findings. It also serves as a reminder of the taxpayer's legal obligations to pay taxes and file returns.
The RAR is typically issued within 30 days of the conclusion of the audit. However, the IRS may take longer to issue a RAR if the audit is complex or if the taxpayer requests additional time to review the findings.
Once the RAR is issued, the taxpayer has 90 days to either pay the taxes, penalties, and interest that are due or to file an appeal. If the taxpayer does not take any action within the 90-day period, the IRS will begin collection proceedings.
The RAR is a serious document, and taxpayers should take the time to read it carefully and understand its contents. If the taxpayer has any questions about the RAR, they should contact the IRS for assistance.
Here are some additional details about the RAR:
* The RAR is typically signed by a revenue agent, who is a IRS employee who is responsible for conducting audits.
* The RAR includes a detailed explanation of the IRS's findings, including any adjustments that were made to the taxpayer's return.
* The RAR also includes a computation of the taxes, penalties, and interest that are due.
* The RAR may include a recommendation for the taxpayer to file an appeal.
* If the taxpayer does not agree with the findings of the RAR, they may file an appeal with the IRS. The appeal process can be complex, and taxpayers should seek professional assistance if they plan to appeal.
The RAR is an important document that can have a significant impact on a taxpayer's financial situation. Taxpayers should take the time to read the RAR carefully and understand its contents. If the taxpayer has any questions about the RAR, they should contact the IRS for assistance.
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