European Stars And Stripes (Newspaper) - November 5, 1986, Darmstadt, Hesse                                Tax audit need t be frightening. Or costly by Leonard Sloane new Yore times none s Federal income a return can be audited by the internal Revenue service. And whenever such an examination is scheduled it can be a traumatic experience. Bui a tax audit to verify income deductions and other items need not be either frightening mysterious or costly. It could be a relatively Brief discus xxi of certain questioned items on a return. If adequate verification is provided no additional tax has lobe paid. Furthermore there is an extensive appeals process available both inside and outside the irs. A Teller from the Revenue service regarding an examination of a return will state whether it is to be a Field correspondence or office audit. An audit at an irs office is the most probable possibility for individual taxpayers who will be requested to bring with them specific documentation such As Bank statements passbook or cancelled checks. Tha Basic thing to to of your Homework beforehand and have the information ready so you Don l have to  said David Shechet a partner of shechet., Haskit 4 co.,a new York certified Public accounting firm you m going to be under pressure and you Don t want to get into an adversary Rote with the tax  actually the chances of being audited Are slim since Only about 13 percent of the 99.4 million individual Erma Bombeck returns were examined in the 1985 fiscal year the most recent Foi which statistics Are available however the greater the income of the taxpayer the greater the probability of audit coverage the primary selection Tod for Tan audits is a computer screening process called discriminant function system or dip a mathematical formula that provides a score with the highest scoring returns most Likely to be audited. The Revenue service will not provide details of this evaluation formula other than to note that Many factors Are taken into consideration. Every item on the return has a relationship to other items on the  said one irs official in Washington the presence of absence of items can both play a  after being told to appear for an examination at a specified time a taxpayer can ask for a postponement for a valid  when the appearance does take place it is a time for answering specific questions and furnishing whatever records have been requested. When Complex or sophisticated issues Are involved moreover it might be advisable to Send an accountant Lodis cuss these matters with the examiner and report Back with the results. If you have been audited in the prior year for the same items and it did no result in any adjustments Call the irs in Advance and explain it said Paul v. Anglin a partner in the Chicago office of Delilla has Cine & Sells. They will basically cancel the  at the end of the examination the agent will make a finding and Issue a report that could result in a further tax liability. A taxpayer who accepts this finding would then sign form 870. Agreeing to the added tax and waiving the right to Appeal. Interest is charged on the mount from the due Date of the return to the Date paid with the rate now my at 10 percent annually. Some financial advisers rate no their cents to Settle outstanding disputes that Cai tar the payment of interest to the Revenue service this year since the tax deduction for this interest a begin to be phased out in 1987 under the tax revision Tew. If my Genc it  taxpayers Are also liable for Penally payments of 5 percent of the additional tax plus 50 percent of the interest on the negligent item or items. And if pm fraud is determined the penalty is 50 percent of the additional tax plus 50percent of the interest due on the negligent item or items. There Are Bow penalties for criminal fraud including imprisonment. Individuals have the right to disagree with the changes proposed by an examining agent though and can Appeal within the irs. The first Appeal is to the examiner s supervisor perhaps on the same Day As the examination Tseh another level of irs Appeal is a conference at the Raiona appeals office where More experienced officials a study the disputed issues and make a determination. Then Here Are appeals through the court system. Taxpayers can go to the tax court where the amount docs not have to be paid first and disputes of s10.000 or less Are handled under Small tax Case procedures or to the claims court or District court where a plaintiff must usually pay the amount and then claim a refund cases but in the District court can be appealed to the court of appeals and the supreme court. Of course it is rarely worthwhile to do so for smal amounts since the Cost or aggravation could Lar outweigh the benefits of even a successful Appeal for most people it does not pay to Lake the irs to court War Ter my i. Ton our tsp financial prgbuem9 we have three clocks in our House and each of us has a wrist Walch. If you want to know what time it is. You d find out taster by driving Over to the Bank or calling time of Day. The clock on the Var blinks on and off at 12 . That is because the Power went off in the House last Spring and when the continuity is broken that s How the Dock lets you know that the continuity is broken. A had every intention of resetting it until we saw the directions. I was to hold Down the Dock Button while my husband performed Steps 2 through 5, but he screwed up by pressing Tahour Pinula Button before he pressed the Day Button and alter a while we figured we were too do to Start again at step 1, so we let it blink. The Dock n the bedroom is hooked up to All kinds of things including a Dio and a speaker phone. It blinks too because in continuity we broken so we never knew what time it to. We Are Only sure that every morning at 6, a disc jockey awakens us with a Promise to maintain cur Pool with Premium service. We Don l have a pod. We also Don t have to gel up at 6, but we can t figure out How to make him go away. The clock on the oven has t had the right time since we owned the stove. Thai is because without my glasses i cannot see what i am twirling and mistake it for he timer. Thus if it is 4 o clock and i put a roast in the oven i inadvertently reset the clock to 4 45.1 have been know to lose As much As two and a half hours on a Busy Day in the Kitchen. I have a wrist Walch that gives you the time in Hamburg Germany. Thai is where the watch was made and set. The directions that came with in Are very Complete beginning with Nach Einem Weiterer Drue auf is Kann die Trunde Len Gerat a Den i live of the Day when i d be walking along the Street and someone will say pan Lon me but do you have wednesday novembers 1986 the time in Hamburg i want to Call my Wile before 3." possibly the Only source of time in the entire House is my husband s watch. It s a runner s watch which Means it looks like a time machine thai is ready to blast off he can give you the time if you have the Lime to Wail for it. He must depress a smal Knob with a sharpened Pencil and subtract four or five hours from the time he bought it depending on the season and whether we Are on Day tight saving Lime to sounds tvs a lot of Fidd Fang but to reset it he. Would have to Csc Abii the car and make sure the owner of the shop where he bought k is to. A couple came Over the other night and innocently inquired what time is it my husband said i Don l have my calculator with me. You Tel  i blinked my eyes 15 w so Urnes. They left hurriedly. It was t hat late i 17the stars and stripes