Question

Aldo has just been audited by the IRS. He does not agree with the agent's findings but believes that he has only two choices: pay the proposed deficiency or resort to the courts.

Answer 1

Answer is given below :

Explanation:

• In many audit disagreements that remain unresolved at the agent level, the taxpayer should consider the appeal to the Appeals Division.
• Although it is part of the IRS, it has the power to resolve audit disputes. It has more settlement power than the agent.
• In many cases, an agreement is reached in the appeals section, which can avoid an expensive and time consuming trial.