Define: RAR

The Revenue Agent’s Report (RAR) is a document generated by a revenue agent following an audit or examination of a taxpayer’s financial records. This report outlines the agent’s discoveries and provides suggestions for modifications or revisions to the taxpayer’s reported income or deductions. In essence, it serves as a condensed overview of the agent’s inquiry into the taxpayer’s financial situation.

The Revenue Agent’s Report (RAR) is a document prepared by a revenue agent following an audit of a taxpayer’s financial records. It includes the agent’s findings and recommendations for any necessary adjustments to the taxpayer’s reported income or deductions. For instance, if a business is audited by the IRS, a revenue agent will review the company’s financial records and prepare a RAR detailing any discrepancies found during the audit and recommending adjustments to the company’s tax return. Similarly, if an individual is audited, a revenue agent will review their tax return and financial records to prepare a RAR with findings and recommendations for adjustments. This process helps ensure accurate reporting of income and the payment of the correct amount of taxes.

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This glossary post was last updated: 26th April 2024.