More Facts Resolve Tax Risks –

Obtaining the Facts –

AS SOON AS the IRS query is received, a full factual inquiry should be performed by the taxpayer.

Ideally a taxpayer should preempt any IRS investigation when it comes to transactions previously concluded and start compiling and saving records as soon as possible. Apart from the written documentation, it is important to identify the key role players involved at the time the transaction was discussed and entered into. Such role players should be interviewed. This may be necessary down the line as these role players could be called to testify as witnesses.

Interviews should preferably be conducted by your advisors as they will be proficient with the type of questions that would normally be posed. The other reason for conducting interviews is that people’s recollection of certain matters tends to diminish over time, so the sooner you can get a recordal the better and more accurate it will be. The role players inevitably resign, retire, change employment, or die. Accordingly, it is best to obtain the information while they are still employed at the relevant entity and can easily cooperate.

In accordance with Circular 230 Disclosure