If a taxpayer recognizes that she is liable for $1,500 of a $3,000 adjustment made by the IRS after an audit, it is probably wise to agree with the adjustment and pay the entire amount, even though she is convinced that she is not liable for the entire $3,000.

Question

Quizplus · Accepted Answer

It is generally advisable for the taxpayer to contest the portion of the adjustment they believe to be incorrect. Agreeing to pay the entire amount, even when convinced of not being liable for it, may not be financially wise or necessary. Taxpayers have the right to dispute IRS adjustments they believe are incorrect.

If a Taxpayer Recognizes That She Is Liable for $1,500