Taxes: Income, Payroll and Sales - Essay Example

The paper "Taxes: Income, Payroll and Sales" is an outstanding example of an essay on finance and accounting. The publication is a significant document that the Internal Revenue Service has circulated in order to inform individuals about their rights as a taxpayer and it even highlights the steps that are followed by the IRS while it conducts an analysis of a taxpayer (Irs.gov, 2014). The publication came into existence because people were continuously complaining regarding the unethical as well as abusive behavior of the agents of IRS in relation to tax collection and the publication was revised during the month of September 2014 (Irs.gov, 2014). The first document containing the rights of the taxpayer was the Taxpayer Bill of Rights and was issued during 1988. Important provisions of the publication are the various rights of the taxpayers including the rights concerning privacy, confidentiality, representation, the value of service, right of information as well as right to challenge the findings of the IRS. In order to avoid an audit by the IRS an individual needs to ensure that he/she has filed correct returns and be honest about them and use the method of e-filling in order to avoid errors. If an audit is conducted an individual should hire a tax lawyer and the individual should have a well-kept record of their earnings and spending and before entering the audit process they should learn each and everything about the audit to act in a professional manner. An effective audit rate is the percentage of individuals and businesses that the IRS had audited in a particular year. For example during the period of 2012 IRS audited 0.8 percent of partnership-based organizations (Rubin, 2014). An individual can make an appeal or challenge the audit within the first thirty days of the audit and this challenge is made directly to the IRS or they can challenge it in the court within the ninety days of the audit.