Audit Representation or audit defense, is when a tax professional represents a taxpayer on their behalf during an IRS or state tax audit. During a tax audit or examination of income, the IRS and all states authorize a taxpayer to have professional representation. This representative must have permission and specific credentials in order to represent the taxpayer before the IRS or state. Those who are allowed to represent taxpayers in front of the IRS or state can be attorneys, CPAs and enrolled agents.
A person representing a taxpayer creates a strategy to defend the individual's situation. The representative helps the taxpayer by preparing all the required documents and attends all the meetings and signs all documents on behalf of the taxpayer.
What do you do if you get audited?
Unfortunately, many people within their lifetime are audited by the IRS.
The majority of audits are simply just a letter that comes in the mail asking for more information about your tax returns and they request that you mail back paperwork proving your income and deductions.
You may also be invited to meet with a registered agent to talk about your taxes. This is the letter that causes most individuals to panic. We are here to help you get through this process and to prevent panic ensuing.
Don’t ignore the letter
When you receive a letter from the IRS, ignoring the letter is the worst possible thing someone could do. If you ignore the letter, the situation Ignoring the IRS is the worst possible thing you can do. The situation won’t go away.
While you should write back as soon as possible, you or your audit representative can ask for more time to gather the paperwork and forms. You can also request a two week extension from your IRS agent.
Do you need representation?
The majority of the time, when you receive a letter from the state or IRS, it's a simple request for further information. The IRS simply may want you to send them your 1099 or see receipts for business expenses. When these requests are sent, usually the paperwork is enough and you don’t need a consultant or lawyer. If you do not have the paperwork from the IRS or the state you probably should call a professional or representative to advise you what to do next.
If the letter requested you to meet with an IRS agent, then you can definitely bring a qualified tax attorney or accountant. If you decide to hire an audit representative to handle your case, you will need to grant power of attorney to that person.
Many people believe that you only hire a professional to help you with your audit if you are guilty, however hiring a professional is quite normal. Hiring a professional makes the situation easier for every situation. Your IRS agent and hired professional will discuss your case and your attorney or accountant will report back to you.
Tell them what they want to know but nothing else.
A very small percentage of audits are random. The rest of the time, the IRS has a specific reason why they are auditing from you. When they have a specific reason, they will have certain questions, forms, and/or receipts that they may want. Answer all their questions and bring in the required information that they asked for.
Most likely, the IRS believes that you aren’t reporting enough income. So show them your forms and answer their questions so you can be dismissed. However, during this process, be sure not to overshare. Do not brag or boast about how much money you made last year. It will just make the IRS more suspicious.
Negotiate and appeal
When your audit is completed, the IRS agent will evaluate any taxes or penalties that you owe. If you are unhappy with this evaluation, the IRS may be willing to work with you because typically they don’t want the case to drag on. If this is what you want to do, it’s always good to have representation on your behalf that has experience in tax negotiation. A good tax attorney will make this situation easier and will be more likely to get you the settlement you want.
Get Audit Representation from The Tax Defense Group
If you have received a letter from the IRS or state saying you have been audited, there is no need to worry! We have represented and assisted hundreds of clients for both their personal and business audits. Even though you may believe you have done nothing wrong and have no reason to hide, we don’t recommend you representing yourself. It is always easier if you have a well trained professional handle the situation and make life easier on yourself.
We will provide you with appropriate expertise and the professionalism you need to help with your audit. By contacting us we are able to come in between you and the state or IRS to make the situation easier on you. If you have a business audit, make sure you understand your rights before you allow them to take your computers, records, and more.
By coming into contact with The Tax Defense Group, we may be able to appear at the audit office on your behalf and we will have your case presented in a prepared manner in order to give you the protection you deserve. However most audits are made via correspondence so you do not need to appear in person. This allows us to cover your case from anywhere in the country. We know you have nothing to fear and will defend your rights at all costs. If you are missing documents or paperwork we will assist you to find the information and evidence you need to undergo the tax audit favorably.