Final answer:
The possible results of an IRS audit include payment of a deficiency or a refund to the taxpayer, or no change in liability. A fine may also be levied against the tax preparer for misconduct. However, a payment to the tax preparer is not a result of an IRS audit. option d is correct.
Step-by-step explanation:
The question refers to the possible outcomes of an Internal Revenue Service (IRS) audit. An audit involves a review of an individual's or corporation's accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct.
- Payment of a deficiency by the taxpayer may happen if the audit concludes that the taxpayer owes more tax than they've paid.
- Payment of a refund to the taxpayer occurs if the audit determines the taxpayer has overpaid and is due a refund.
- No change in liability means the audit found everything to be in order, and there are no adjustments necessary.
- A fine levied against the tax preparer is possible if the audit uncovers evidence of fraudulent preparation or severe negligence on the part of the tax preparer.
However, one result that is NOT typical of an audit by the IRS is payment directed towards the tax preparer. The tax preparer may indeed be fined if they are found to have engaged in fraudulent activities or gross incompetence. But it's not customary for a tax preparer to receive a payment as a result of an IRS audit on a client's tax filing. Therefore, the IRS will not issue a payment to a tax preparer as a direct result of auditing one of their clients. So the mention correct option, which is not a possible result of an IRS audit, would be a payment to the tax preparer.