What is a IDR Audit?

Lets Talk about IDR Audits, and the Illinois Department of Revenue. By Alan Orlowsky

IDR stands for Information Document Request, IRS Form 4564.
It is a form that the IRS uses during a tax audit to request information from the taxpayer. Tax Litigation lawyers spend a lot of time thinking about how best to respond to IDR's in a way which is most appropriate, and does not reveal any information that is covered by attorney client privilege.

You have the right to fair and equitable treatment if your account has been selected for audit. Since the audit function is to determine whether the correct amount of tax has been reported, we are willing to acknowledge tax over payments or errors on our part as we are also able to recognize under payments. We may ask you to provide additional information to verify amounts shown on your returns. You have the right to know why the Department of Revenue is asking for information, how that information will be used and what will happen if you do not furnish the information. If you have questions about any of these please contact Alan today for a consultation.

Let's also talk about IL Department of Revenue Hearings, Audits or Determinations of Liability:

Whether it's a Payroll, Sales, Business Income Tax, or Personal Income Tax issue that you might have with the Illinois Department of Revenue (IDOR), there is a good chance Orlowsky & Wilson can help. We assist clients in Illinois Department of Revenue Audits and challenging tax liability assessments and or determinations. The typical IDOR audit involves a face to face meeting with a IDOR auditor. if you receive a Tax audit letter from the department of Revenue, you should examine your records to determine the nature and extent of the tax audit issue. While it is possible that IDOR will want to audit the entire tax return for a given year or years, more frequently the department of revenue will focus on a certain portion or schedule of certain tax years.

Often clients seek assistance before the hearing stage. We advise that you secure legal or other representation prior to this. Ideally, you should secure assistance in the way of representation as soon as you are contacted by the Illinois Department of Revenue. In most cases where things have progressed to the hearing stage, there has typically already been an audit or determination of liability  has already been entered against a tax payer or "responsible corporate officer." Alan Orlowsky has represented numerous clients in such hearings. If you have an IDOR hearing coming up, you should contact Alan immediately to find our what rights you might have.

If the issue concerns supporting documentation or alleged lack thereof, then you should send IDOR copies of any and all appropriate documents. Do not send originals to IDOR as there is no guarantee that they will return the documents to you. Additionally, originals might get lost in the mail or at the IDOR offices. If the tax notice questions whether you are entitled to a tax deduction or questions a tax position taken on the tax return, you should consult your tax adviser before responding to or submitting any documentation to IDOR. While a quick, satisfactory explanation can end the matter swiftly, there is no guarantee. Regardless, it is important to correspond with the IDOR in writing whenever possible. You should not delay in seeking assistance, legal or otherwise, in your IDOR matter. In some cases, the Department of Revenue can and will record liens against property or even levy wage garnishment against taxpayers.

If you have questions about this post or about a particular legal situation, please contact Alan Orlowsky by calling 847-325-5559 or visit or website at http://www.orlowskywilson.com