Representation in IRS Audits, From the First Letter Through Appeals.
An IRS examination is a legal process with its own rules, deadlines and rights. We represent individuals and businesses in correspondence, office and field audits, deal with the IRS on your behalf, and protect your appeal rights from the start.
Types of IRS Audits
Correspondence audits
Conducted by mail. A notice such as a CP2000 proposes changes when income reported by employers, banks or other third parties does not match the return, and the IRS generally asks for a response within 30 days of the notice date.
Office audits
An in-person examination at an IRS office, usually conducted by a tax compliance officer and focused on specific items on the return.
Field audits
Conducted by a revenue agent at a home, a place of business or a representative’s office, and often broader in scope, particularly for business and investment income.
Audits with potential criminal exposure
Sometimes called an eggshell audit: a civil examination of a taxpayer whose return may raise criminal exposure the IRS has not yet identified. These matters call for careful handling before anyone speaks with the examiner.
How We Handle an Audit
Review before responding
We review the notice, the returns and the records before anything is sent to the IRS, and identify the issues and deadlines that matter.
Representation at interviews
With a power of attorney on Form 2848, we deal with the IRS directly. Under IRC §7521, the IRS generally may not require a represented taxpayer to attend an interview unless the taxpayer has been summoned.
Documentation
We organize the records and explanations that support the return, including reconstruction when original records are missing.
Statute of limitations
The IRS generally has three years from filing to assess additional tax, six years if gross income was understated by more than 25 percent, and no limit for a fraudulent return (IRC §6501). We review any request to extend the period before it is signed.
Appeals and the Tax Court
If the examination ends with proposed changes you disagree with, we can request review by the IRS Independent Office of Appeals and, after a notice of deficiency, petition the U.S. Tax Court.
Privilege and Representation
Confidential communications with an attorney made to obtain legal advice are protected by the attorney-client privilege. CPAs and enrolled agents have a narrower privilege for tax advice under IRC §7525 that does not apply in criminal matters, which is one reason an attorney is often the right choice when an audit could raise questions beyond the numbers.
Under Audit or Expecting One?
Contact Advantage Tax Law for a confidential consultation before you respond to the IRS.