What is Tax Audit Representation?
Tax audit representation, or audit defense, involves a tax or legal professional representing a taxpayer during an IRS or state income tax audit. Qualified representatives, such as attorneys, CPAs, or enrolled agents, can stand in on behalf of the taxpayer. They are responsible for developing a defense strategy, preparing required documents, and handling all communications and meetings with the taxing authority.
What Happens If You Get Audited?
Unfortunately, some unlucky people wind up getting audited.Seventy percent of audits are just a letter asking for more information about your tax returns, and you are asked to mail back forms proving your income or deductions. In other cases, you will get an invitation to meet with an agent to discuss your tax forms, a scenario that sends many taxpayers into a panic.There’s no need to panic, but there are certain steps you should take to prepare for a tax audit.
Don’t ignore the IRS letter
Ignoring the IRS is the worst possible thing you can do. The situation will not go away.While you should write back to the IRS as soon as possible, you or your tax audit representative can ask for more time to gather the paperwork and forms. A two-week extension is not an unreasonable request of your IRS agent.
Decide whether you need tax audit representation
Most of the time, the letter you receive from the IRS is simply a request for information such as asking for your 1099 form or receipts for business meal deductions. In these cases, sending in the requested documents is usually sufficient, and you may not need to involve your lawyer or accountant. However, if you can’t find the information the IRS is seeking, it’s advisable to consult a professional for guidance. Additionally, if you’re asked to meet with an agent, it’s wise to seek assistance from a qualified tax attorney or accountant. To allow your tax audit representative to handle the process on your behalf, you will need to grant them power of attorney. Contrary to what you might think, bringing in a professional firm for audit representation won’t annoy the IRS agent or make them suspicious. In fact, agents generally prefer dealing with attorneys because they present information clearly and professionally.
Get Tax Audit Representation from Peak Tax Relief
If you’ve received a letter notifying you that your tax return has been selected for an audit, don’t worry! We have extensive experience representing clients in both personal and business tax audits. Even if you believe you’ve done nothing wrong or are unsure why you’re being audited, we advise against representing yourself. We offer the expertise and professionalism needed to handle IRS or state audits. Personal audits are often selected for statistical reasons, and we can act as a buffer between you and the tax authorities. For business audits, it’s crucial to understand your rights before allowing the IRS or state agents to access your computers, records, or place of business. We can represent you at the audit office and prepare your case to ensure you receive the protection you deserve. We are knowledgeable about your rights and will help you gather all necessary documentation to navigate the audit successfully. Additionally, many audits can be handled through correspondence, meaning you may not need to appear in person. This allows us to assist clients nationwide, regardless of their location.