IRS Audit Representation
We Speak to the IRS, So You Don't Have To
Did an audit notice knock on your door? Don’t panic. With over 20+ years of experience, Prime Tax Solutions solves your IRS audit worries – one step at a time!
Understanding what is IRS Audit Representation: Meaning and Importance!
Why is it Important?
Having a professional represent you during an audit can be incredibly beneficial. They have the knowledge and experience to handle complex tax problems and can communicate with the IRS on your behalf. This can help reduce your stress and ensure that your rights are protected. Our in-house Tax audit representatives understand the tax code, IRS procedures from the inside, and how to present your case in the most favorable light.
Remember, an IRS audit can be a challenging experience, but you don’t have to go through it alone. With professional tax audit help, you can navigate the process with confidence and ensure the best possible outcome.
Facing an IRS audit? Don't go it alone. Get IRS audit representation from Prime Tax Solutions because we know the IRS from the inside!
Know from Expert CPAs:
Who Needs IRS Audit Representation?
Have Complex Tax Situations
If your tax situation is more than just a W-2 and some basic deductions, having expert IRS representation can be incredibly beneficial.
Are Unfamiliar with Tax Law
Not everyone knows taxes perfectly, and that's okay! But when you're facing an audit, ignorance is not bliss.
Individuals with High Income
Those who have a high income are more likely to be audited by the IRS. If you are earning more than $200,000 a year, your chances of being audited increase significantly. The bigger the sums, the higher the stakes.
Self-Employed or Small Business Owners
Being self-employed or owning a small business often involves complex tax situations with more room for error, which can trigger an audit. Additionally, the IRS tends to scrutinize business returns more than individual returns.
Those with Foreign Income or Assets
If you have foreign income or assets, you have additional reporting requirements, which increases the complexity of your tax situation and the likelihood of an audit.
Real Estate Investors
Real estate transactions involve many complex tax laws. Mistakes or oversights can easily occur, and the IRS may want to take a closer look at your return.
Those with Large Charitable Deductions
If your charitable deductions are disproportionately high compared to your income, the IRS might question the legitimacy of the deductions.
Individuals with Frequent Transactions
If you frequently buy or sell stocks, bonds, or other assets, the IRS may decide to audit your return to ensure all capital gains and losses are accurately reported.
Those with Past Audit History
If you have been audited before, there is a higher chance that the IRS might decide to audit your return again.
Remember, an audit does not always mean there is a problem with your return. Sometimes returns are selected randomly.
Know the Benefits of IRS Audit Representation!
Expert Guidance on Different IRS cases: A qualified representative will know the ins and outs of tax laws, helping you present your case in the best possible light.
You’ll have Less Stress: Having someone to guide you through the process can take a weight off your shoulders. You won't have to face the IRS alone.
You save Time: Professionals can quickly gather the necessary paperwork and know how to respond to IRS inquiries, saving you precious time.
Better Outcomes in IRS Audit Representation cases: With expert IRS audit help, you're more likely to minimize penalties and could even reduce the amount of tax you owe.
100% Confidentiality between us: Your representative can speak freely to the IRS, as they are protected by client privilege.
The Risks of Not Having IRS AuditRepresentation: Get Help Today!
Opting to go without professional audit representation has its own set of risks:
1. Higher Chance of Errors
If you’re not an expert in tax law, you could easily make mistakes that may compound your problems.
2. Increased Stress
Facing the IRS alone can be nerve-wracking and stressful, affecting your peace and even your health.
3. Potential for Higher Penalties
Without expert advice, you may end up facing higher fines or even legal repercussions.
4. Time-Consuming
Preparing for an audit takes time, and doing it alone makes the process even lengthier.
5. Lack of Negotiation Skills
“Are you facing an IRS audit?”
Get professional IRS audit representation from PTS. Why? Because the benefits outweigh the risks, and having an expert in your corner can make all the difference during tight times!
Understanding what is IRS Audit Representation: Meaning and Importance!
Understand the Audit Notice:
The first step in preparing for an IRS audit is to understand the notice you received. The IRS will typically send a notice by mail that explains which years are being audited and which documents they would like to see.
Gather Your Documents:
Collect all the documents that the IRS has requested in the notice. This may include receipts, bills, legal papers, and other records related to your income and deductions.
Review Your Tax Returns:
Take the time to review the tax returns that are being audited. Make sure you understand how you arrived at each figure and that you can support it with documentation.
Organize Your Documents:
Organize all your documents neatly and logically. This will make it easier for you and the IRS agent to find the necessary documents during the audit.
Consult our IRS Tax specialists:
Consider seeking help with tax audit preparation. Our tax professionals or tax representatives can help you understand the audit process and prepare your documents. They can also accompany you to the audit, which can be especially helpful if there are complex issues involved.
Know Your Rights:
Familiarize yourself with the 'Taxpayer Bill of Rights.' These are ten rights that every taxpayer has when dealing with the IRS.
The Different Types of IRS Audits: Know from IRS Tax Resolutions Specialists
The IRS conducts three main types of audits:
Correspondence Audit
This is the most common and the least severe type of audit. The IRS will send you a letter requesting more information about certain items on your tax return. You can usually handle a correspondence audit by mailing the requested documents to the IRS.
Office Audit
This is a more in-depth audit where you are required to meet with an IRS agent in person. The IRS will send you a notice requesting that you come to an IRS office to discuss certain items on your tax return.
Field Audit
This is the most comprehensive type of audit. An IRS agent will come to your home, business, or accountant's office to examine your records. The agent will typically want to see all your records, not just specific items.
No matter what type of audit you are facing, seek tax representation or consult those who specialize in tax audit services. They can guide you through the audit process, help you prepare your documents, and represent you during the audit. Remember, it’s always better to be well-prepared and well-represented during an IRS audit.
Alan C. Barber
Certified Public Accountant, 30+ years’ Experience
What are my rights during an IRS audit?
You actually have quite a few rights during an IRS audit. Here are some you need to be aware of:
The right to remain silent
The right to have an attorney present
The right to request a copy of any documents that the IRS is relying on
The right to appeal the outcome of the audit
FAQs about IRS Audit Representation
IRS Audit Representation, also known as audit defense, is a service in which a tax professional or a tax attorney represents a taxpayer during an IRS or state income tax audit. These professionals assist the taxpayer in preparing all documents, communicate with the IRS on their behalf, and attend all meetings and hearings related to the audit.
A taxpayer can be represented by an enrolled agent, a certified public accountant (CPA), or a tax attorney. These professionals are authorized by the IRS to represent taxpayers before them in audits, collections, and appeals.
A representative in an IRS audit will help the taxpayer in various ways such as:
- Understanding the audit process and the issues raised by the IRS.
- Gathering and organizing all necessary documents and information required for the audit.
- Communicating with the IRS on behalf of the taxpayer.
- Attending meetings and hearings with the IRS.
- Negotiating with the IRS to minimize any additional tax, penalties, and interest.
To authorize someone to represent you in an IRS audit, you must complete Form 2848, Power of Attorney and Declaration of Representative. This form will allow you to appoint a qualified individual to act on your behalf in dealings with the IRS.
Common reasons for being selected for an IRS audit include:
- Errors or discrepancies in your tax return.
- High income.
- Significant changes in income or deductions from the previous year.
- Being self-employed or owning a business.
- Large deductions relative to your income.
- Frequent or large cash transactions.
While it is possible to handle an IRS audit on your own, it is often not recommended due to the complexity of tax laws and the audit process. Having a professional representative can help ensure that all documents are correctly prepared, all deadlines are met, and can often lead to a more favorable outcome.
The potential outcomes of an IRS audit may include:
- No change: The IRS finds that your tax return is accurate and no changes are necessary.
- Agreed: You agree with the proposed changes by the IRS and make the necessary payments or receive a refund.
- Disagreed: You do not agree with the proposed changes by the IRS. In this case, you may request a conference with an IRS manager, mediation, or file an appeal.
During an IRS audit, a taxpayer has the following rights:
- The right to professional and courteous treatment by IRS employees.
- The right to privacy and confidentiality about tax matters.
- The right to know why the IRS is requesting information, how the IRS will use it, and what will happen if the requested information is not provided.
- The right to representation by an authorized representative.
- The right to appeal disagreements, both within the IRS and before the courts.
