The IRS Form 886-A is a document used by the Internal Revenue Service (IRS) to explain the adjustments made to a taxpayer's return. It is a crucial document that taxpayers should carefully review to understand the changes made to their tax return. In this article, we will delve into the world of IRS Form 886-A, explaining its purpose, how to read it, and what to do if you receive one.
What is IRS Form 886-A?
IRS Form 886-A is an examination changes report that the IRS uses to communicate changes made to a taxpayer's return. The form is typically sent to taxpayers after an audit or examination of their tax return. The report explains the adjustments made to the return, including any changes to income, deductions, or credits. The form also provides the taxpayer with an opportunity to agree or disagree with the adjustments.
Purpose of IRS Form 886-A
The primary purpose of IRS Form 886-A is to provide taxpayers with a clear explanation of the changes made to their tax return. The form helps taxpayers understand the adjustments made and the reasons behind those adjustments. The form also serves as a notice to taxpayers of any additional tax liability or refund due as a result of the adjustments.
How to Read IRS Form 886-A
Reading IRS Form 886-A can be overwhelming, especially for those who are not familiar with tax terminology. However, by breaking down the form into sections, taxpayers can better understand the changes made to their return.
Section 1: Explanation of Adjustments
Section 1 of the form provides a detailed explanation of the adjustments made to the taxpayer's return. This section includes a description of the issue, the adjustment made, and the reason for the adjustment. Taxpayers should carefully review this section to understand the changes made to their return.
Section 2: Computation of Tax Liability
Section 2 of the form provides a computation of the taxpayer's tax liability based on the adjustments made. This section includes a calculation of the taxpayer's total tax liability, including any penalties and interest.
What to Do If You Receive IRS Form 886-A
If you receive IRS Form 886-A, there are several steps you should take:
Review the Form Carefully
Taxpayers should carefully review the form to understand the adjustments made to their return. Reviewing the form will help taxpayers identify any errors or discrepancies.
Agree or Disagree with the Adjustments
Taxpayers have the option to agree or disagree with the adjustments made. If you agree with the adjustments, you can sign and return the form to the IRS. If you disagree, you can request a conference with an IRS representative to discuss the adjustments.
Seek Professional Help
If you are unsure about the adjustments made or need help understanding the form, consider seeking professional help from a tax professional or attorney.
Common Issues with IRS Form 886-A
While IRS Form 886-A is designed to provide taxpayers with a clear explanation of the changes made to their return, there are common issues that taxpayers may encounter.
Inaccurate or Incomplete Information
Taxpayers may receive a form with inaccurate or incomplete information. If you notice any errors, you should contact the IRS immediately to resolve the issue.
Lack of Explanation
Taxpayers may receive a form with inadequate explanation of the adjustments made. If you are unsure about the adjustments, you should request a conference with an IRS representative to discuss the changes.
Conclusion
IRS Form 886-A is an essential document that taxpayers should carefully review to understand the changes made to their tax return. By understanding the purpose and content of the form, taxpayers can ensure that their tax return is accurate and complete. If you receive IRS Form 886-A, take the time to review the form carefully, and seek professional help if needed.
Invite to Engage
We invite you to share your experiences with IRS Form 886-A in the comments below. Have you received the form before? What was your experience like? Share your thoughts and questions, and we will do our best to provide a helpful response.
What is IRS Form 886-A?
+IRS Form 886-A is an examination changes report that the IRS uses to communicate changes made to a taxpayer's return.
How do I read IRS Form 886-A?
+Reading IRS Form 886-A can be overwhelming, but by breaking down the form into sections, taxpayers can better understand the changes made to their return.
What should I do if I receive IRS Form 886-A?
+If you receive IRS Form 886-A, review the form carefully, agree or disagree with the adjustments, and seek professional help if needed.