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These are some “effective interview techniques” that IRS Auditors are taught to use when meeting with taxpayers.

  • Use open-ended questions.
  • Use probing questions.
  • Restate responses.
  • Listen to the taxpayer and the POA (person with Power of Attorney)
  • Be courteous and businesslike.
  • Read taxpayer’s non-verbal body language.
  • Control the interview.
  • Remain calm.
  • Appear confident.
  • Be well prepared.
  • Consider issues in proper order (volatile vs. non-volatile), volatile being last!
  • Be observant.
  • Use spontaneous follow-up questions.
  • Clarify responses.
  • Ask for examples.
  • Be assertive and persistent.
  • Avoid arguments.
  • Give the taxpayer an opportunity to ask questions.
  • Express appreciation.
  • Verbally pin down taxpayer when appropriate.
  • Maintain composure.
  • Contain your excitement.
  • Don’t interrupt the taxpayer.
  • Pace the interview.
  • Have the taxpayer demonstrate the flow of transactions.
  • Read the taxpayer’s perception of you.
  • Have the taxpayers explain their terminology.
  • Consider the need to interview both spouses.
  • Review important responses from previous interviews to refresh the taxpayer for the current interview.
  • Be methodical and organized.
  • Make eye contact.
  • Be conscious of note-taking so as not to distract the taxpayer.
  • Adapt your appearance to be appropriate for the circumstances.
  • Be aware of your non-verbal body language.
  • Make appropriate use of “silence”.
  • Ask only one question at a time and wait for a response.
  • Use appropriate small talk.
  • Don’t anticipate answers.
  • Interview at the place of business, examine at the place of business.
  • Remember that interviewing involves both the initial interview as well as each contact with the taxpayer/representative-interviewing is a continuous process.

IRS Auditors learn these are some reasons taxpayers don’t report income.

  • Don’t want to pay tax.
  • Can get away with it.
  • Self employment tax too high.
  • No money to pay.
  • It’s part of our culture.
  • I can beat the audit lottery.
  • Big guys do it, why not me?
  • My friends cheat.
  • Income not shown on 1099 form.
  • Industry practice (for example rebate checks).
  • Expenses=income, why report?
  • My prices won’t be competitive if I pay tax.
  • Government waste.
  • Opposed to government programs.
  • No benefits to me.
  • Tax laws are unfair.
  • This is my own tax shelter.
  • Selfish, greedy.
  • To support gambling habit.

This information was provided by the folks from Tax Savings. They reported that they had great difficulty getting this information, even under the Freedom of Information Act.

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