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Revenue Agent's Report

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Revenue Agent's Report
An IRS agent's report following an audit. The RAR contains information such as adjustments to the taxpayer's income, but it states the bottom line as to whether the taxpayer overpaid, underpaid, or paid the correct amount. If the taxpayer overpaid, he/she receives a refund. If one underpaid, one must pay additional taxes, often with interest and penalties. See also: Form 4549.


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In addition, the Company received a Revenue Agent's Report relating to the audit of the Company's federal income tax returns for fiscal years 2005 and 2006.
Under the new procedures, the issuance of Form 5701 takes on additional importance, because a revenue agent's report (RAR) will not be issued.
As for notifying the FTB, one CPA proffers this cost-effective method: Simply send the FTB a copy of the Revenue Agent's Report, with a cover memo saying, in essence, "Here is a copy of what the IRS did; please assess the tax and send a bill.
 
 
 
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