Tis the Season to get Audited

Oct 30, 2014

Many clients have seen their recent tax refunds delayed by the I.R.S. The reason for this is that someone high up in the I.R.S. ranks decided that most citizens in Israel and other parts yonder cannot receive their refund without first undergoing an official examination to verify that the refunds are accurate and just. Certainly these folks have the legal authority to take this course and they also have their reasons to be cautious.

These packets (sent in duplicate in his and hers editions) include scary notices (form 4549) of amounts due for tax corrections, penalties, and interest. Please note that these notices are only warnings about what will result if you, the taxpayer, fail to respond with the requested documents (see form 4564). In other words DON’T PANIC. Many of us will panic despite my admonition, but just keep in mind that the worry is optional.

If it makes you feel better, know that I myself have the privilege of receiving extra attention from our friends in the Greensboro N.C. field office of the I.R.S. So I am in the trenches right alongside of our clients. The good news is that we have much experience in handling these audits and have established good working relationships with the responsible I.R.S. officers.

With all things bureaucratic, documents will make or break your case. Anything on your filing that requires verification (which is everything on your filing) requires an appropriate document to back it up. One item of particular scrutiny is the citizenship of the children. While in general copies of documents will suffice for their purposes, they are currently demanding ORIGINAL copies of the children’s citizenship document. For children born in the USA this is the birth certificate. Otherwise, it is either the consular report of birth abroad or a certificate of citizenship. Personally, I despise this requirement. After all, who the devil wants to part with such valuable documents? Nonetheless, taxpayer’s don’t have much alternative than to comply with the request. The I.R.S. officer will return your original documents. Other documents required for submission are listed below. Any document that is not in English will require translation by a professional translator. We work with several of these translators.


Documents to gather for an I.R.S. examination:

  • Birth certificates (Misrad hapanim will issue with English on request)
  • Certificates of birth abroad (issued by the consulate) or certificates of citizenship (issued in USA)
  • USA passports for all family members (if available)
  • USA birth certificate or CRBA of parent
  • SSN cards
  • ITIN letter
  • Confirmation of income and taxes paid (tofes 106 and doch sh’nati if available)
  • Pay stub
  • A bank statement that shows the salary deposit and matches the pay stub
  • Employment contract or statement from employer specifying employment dates and responsibilities and work hours, including name, address, and telephone number of employer
  • Teudah Zehut showing parents’ names, children, and home address; make sure that the sefach is signed.
  • Doctor/school letter
  • תמצית רישום – for parent(s) + each dependent child
  • Marriage certificate (and divorce certificate if relevant)


Also see this article by my friend Simon Jackson Esq: http://www.jacksonadvocates.net/how-to-survive-an-irs-audit-in-israel/



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