Trusted IRS Tax Audit Attorneys Guidance

The IRS picks certain items on your return and asks you to prove them: income, a deduction, a credit, a business expense, sometimes your filing status. It might happen by mail, at an IRS office, or at your business. The examiner reviews what you send, may ask follow up questions, and then either accepts the return or proposes changes. You'll usually have chances to send more documents and to push back before anything is final.

Yes. Enrolled Agents are licensed by the U.S. Treasury with unlimited practice rights before the IRS, which covers correspondence, office and field audits as well as IRS Appeals. With a Form 2848 on file, the examiner deals with us, not you. Many people start by searching for a tax attorney, but most IRS audits do not need one: an Enrolled Agent can represent you directly, and if your case ever calls for outside counsel, we'll tell you so you can engage one.

All three kinds. Correspondence audits come by mail and usually focus on one or two items. Office audits mean a meeting at an IRS location with a list of documents to bring. Field audits are the most involved: a revenue agent comes to your business and may look at the books, payroll and contracts. We handle each type for individuals and companies, including businesses with complex records such as government contractors.

Start with the audit letter, the return being examined and records for the specific items listed. Depending on the issue, that could be bank statements, invoices, receipts, payroll reports, general ledgers, contracts, mileage logs, prior year returns or proof of payment. Resist the urge to send everything you own. A focused, organized response that matches the return works far better than a box of paper.

A simple mail audit about one deduction may wrap up in a few months. A field exam covering several years of business books can run much longer, and an appeal adds more time. The examiner's caseload, the quality of your records and how quickly responses go back all play a part. We aim to answer promptly while still taking the time to get each response right.

Don't sign the agreement form just to make it go away. Look at the examiner's reasoning and math first. You can often send more support, ask to speak with the examiner's manager, or file a protest with the IRS Independent Office of Appeals. Appeals is a separate part of the IRS whose job is to settle disputes fairly, and many cases resolve there. Watch the deadline on the 30 day letter, because missing it limits your options.

It can. If the IRS decides income was missing or a deduction wasn't supported, it will propose more tax plus interest, and possibly an accuracy related penalty. Penalties aren't automatic, though. Reasonable cause or other relief may apply depending on the facts. And if the audit leaves you with a balance you can't pay at once, we can move straight into tax resolution, such as an installment agreement.

Read it closely, write down the response date and keep the envelope and every enclosure. Figure out which years and which items are under review. Don't ignore it, and don't fire off a partial answer. Collect the return and the records that relate to the questions, then decide how to respond. Bringing in a representative at this stage means every later contact with the IRS goes through one organized channel.