Tax Audit Representation

An IRS audit is when the IRS examines a tax return to determine if the information being reported on the return is accurate. There are two types of audits the IRS can conduct with a taxpayer with one considered to be more worrisome than the other. Whichever type of audit being conducted it is important the taxpayer being audited consider representation by a tax professional.

Types of Tax Audits

Generally there are two types of methods a tax audit can be conducted. The first method is by mail. The IRS will conduct the audit and then submit the audit report to the taxpayer describing what was changed on the tax return and an opportunity to provide records to substantiate your original numbers. These records will be mailed to the IRS and then analyzed by the auditor. At no time will there be a person-to-person meeting or conversation.

The second audit can be viewed as a more serious audit although both tax audit methods are equally serious. This method is conducted in person rather than mail. The audit will be an interview of the taxpayer by the auditor in order to determine if information was accurately reported on a tax return. These interviews are generally conducted at a place of business or home at the request of the auditor.

Audit Representation Should Be Seriously Considered

When being audited a taxpayer should seriously consider professional representation by a CPA, attorney, or enrolled agent. Having representation will provide the technical knowledge needed to minimize audit findings by using a variety of strategies. Whether it is accounting tactics or alternative solutions to lack of records needed for the tax audit, a tax professional brings value and advanced skills to your side.

Additionally, a tax professional on your side also ensures the audit will be conducted in the manner that it should be. The IRS has guidelines auditors must follow so a taxpayer rights are upheld but it is far too common that IRS agents abuse the power they possess. This is done though in an unknowing way by the auditor oftentimes. For example, an auditor may decide to audit multiple years of tax returns and include years they are not supposed to. Since the taxpayer does not know the guidelines they allow the audit to be conducted.

Call Back Tax Resolution for a free consultation with a CPA, attorney, or enrolled agent. You’ll speak with a tax professional who will discuss with you the audit you have and how we can help.