Tax Dictionary – Revenue Agent Report
Revenue Agent Reports (RARs) should contain all the information necessary to ensure a clear understanding of the adjustments and demonstrate how the tax liability was computed. Based upon the importance of the RAR, examiners should take all necessary steps to ensure report accuracy.
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When the IRS completes an audit, the IRS revenue agent or tax compliance officer prepares an examination report (generally a Form 4549) that shows the changes he or she is proposing to your tax return, along with the proposed taxes, penalties and interest. This report also includes a Form 886A, which explains why the IRS is changing your return. The IRS sends the examination report with a letter that gives you 30 days to appeal the changes with the IRS Office of Appeals.
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