Last week, I reported on the Tax Resolution University blog the recent sex scandal facing the IRS. The details of this inappropriate meeting between IRS agent and taxpayer under audit appeared last week in a Huffington Post article titled “Vincent Burroughs Accuses IRS Agent Dora Abrahamson of Coercing Sex by Using Threat of Tax Penalty.” Here are a few of the highlights Huffington Post reported about Agent Abrahamson:
- Initially, she contacted taxpayer Vincent Burroughs, 40, of Fall Creek, OR about an audit in August 2011 and told him “she knew who he was, and that it was lucky for him that this was the case, and that they should meet.”
- She continued her contact with Burroughs with flirtatious phone calls and text messages.
- She also offered Burroughs massages and sent him a photo of herself in her underwear.
According to the article, Burroughs, (who has filed the lawsuit in federal court in Eugene, OR) claims he initially ignored her advances but stated in the lawsuit, he surrendered to Abrahamson after she arrived at his home in September 2011 “provocatively attired” and threatening a 40% tax audit penalty if she didn’t get what she wanted.
The IRS is not commenting on the case or whether agent Abrahamson is still employed at the Agency.
Agent Abrahamson is certainly not representative of the IRS agents and examiners who we know handle their audit cases in a professional and legal manner. Nevertheless, taxpayers should have a healthy fear of an IRS agent who contacts them at their home to discuss their IRS audit.
Here are four IRS audit facts to know about tax audits:
- IRS audits occur for many reasons and are often random. Note: If you received an IRS audit letter, read the entire letter so you know what the IRS is asking of you.
- The IRS can audit you by mail (correspondence audit) in their offices, (field audit) or in your office or home (office audit).
- In a tax audit, the IRS asks around 54 interview questions at the initial meeting that may seem fairly innocent. The trick for taxpayers is to answer them truthfully so as to avoid raising any red flags or making their case worse by “talking too much.”
- Tax examiners are trained to look for mistakes that can lead to further questioning and result in a higher assessment of taxes owed.
If you have other tax problems, or are currently under audit, hire a certified tax audit specialist or expert tax attorney for audit representation before the IRS. Not only will they take over all IRS communication, they can help negotiate an IRS settlement or penalty abatement that resolves your tax issues for good. Perhaps Vincent Burroughs could have prevented his tax audit nightmare had he done so.
An Update to last week’s post: IRS Delays Returns Claiming Education Credits. The IRS just announced the following:
- Starting Sunday, Feb. 10, the IRS will start processing tax returns that contain Form 4562, Depreciation and Amortization.
- On Thursday, Feb. 14, the IRS plans to start processing Form 8863, Education Credits.
Forms and additional information about Educational Credits can be found on the IRS website: irs.gov