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In even worse scenarios, the time lag can lead to taxpayers’ amounts due being sent to collections even though documents responding to the audit are still in transit. “The agency is overworked and understaffed, and there are a lot of taxpayers,” Drumbl said. Wealthier Americans can face longer audits Tax experts interviewed by MarketWatch noted that when high-net-worth individuals like President Trump face an audit, their legal or financial counsel can take steps to an extend an audit to ensure a more beneficial outcome. “If you’re represented by counsel, you just turn this over to your accountant or lawyer and they handle it,” Lipman said. “Donald Trump isn’t interacting directly with the IRS at all.” When audits are performed on sizable returns or in scenarios where a taxpayer owns multiple businesses, an office or field examination may occur where the taxpayer or their representative meets in person with an IRS agent to go over materials. “That elevates it to a much more sophisticated level,” Lipman said. “You’re working one-on-one with someone, which very much humanizes it. It beats people answering the phone.” “ ‘The slow, steady situation for represented taxpayers benefits the taxpayer because they can slowly wear down the audit.’ ” — Francine Lipman, a law professor at the University of Nevada, Las Vegas What it doesn’t do, however, is speed up the process. A taxpayer’s lawyer in this case can choose to dispute different elements of the audit to purposefully slow matters down. They can also appeal to higher-ranking officials within the IRS. If a taxpayer is unsatisfied with the agency’s final determination, they can then choose to take the case to court. “The slow, steady situation for represented taxpayers benefits the taxpayer because they can slowly wear down the audit,” Lipman said. “It’s actually a human being that’s the auditor, and they’re motivated to close the cases.” Trump cited his lawyers during Thursday night’s town hall as advising him not to release his tax returns, since doing so could complicate a possible deal with the agency. “No person in their right mind would release, prior to working out the deal with the IRS,” he said. Furthermore, in many cases where the government is set to pay a refund of more than $2 million, the return will be reviewed by the Joint Committee on Taxation. This committee is nonpartisan and composed of 10 members, five from the Senate Finance Committee and five from the House Ways and Means Committee. The committee’s staff attorneys review these reports, and the body will either choose to clear a return for a refund or issue a recommendation to the IRS of a different outcome. As of 2016, in most situations, the committee’s cases were closed within 45 days of receiving them from the IRS. Presidents and vice presidents are always audited The IRS stipulates that the individual tax returns for the president and the vice president “are subject to mandatory examinations.” The policy has been in place since the Watergate scandal — meaning that every president since Richard Nixon has had their income tax returns audited. The IRS handbook stipulates in detail how these audits are performed.

https://www.marketwatch.com/story/president-trump-has-faced-a-decade-long-audit-of-his-taxes-heres-how-long-irs-audits-usually-take-2020-10-01

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