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What is Tax Audit Representation?


Tax audit representation, also known as audit defense, is a service in which a tax or legal professional stands in on behalf of a taxpayer (an individual or legal entity) during an IRS or state income tax audit.

During an income tax audit or examination, the IRS and all states allow a taxpayer to have an authorized representative. The representative must have permission to practice before the IRS or state, and specific credentials are required. The types of representatives who are allowed to represent taxpayers before the IRS in income tax audits include attorneys, CPAs, and enrolled agents.


An audit representative develops the strategy used to defend the taxpayer's position. He or she assists the taxpayer in preparing all documents requested by the taxing authority and typically attends all meetings and handles correspondence on behalf of the taxpayer.


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 get in the mail is just a simple request for information – the IRS just wants you to mail in your 1099 form, for instance, or they want to see receipts for the business meals you deducted. In that case, just sending in the requested paperwork is usually sufficient, and you don't need to get your lawyer or accountant involved.

If you can't find the information they're looking for, you'll probably want to call a professional to advise you on your next move. And if you've been called in to meet with an agent, you should almost certainly bring in outside help from a qualified tax attorney or accountant.

You will need to grant power of attorney to your tax audit representative, to let them handle everything while you stay home.

You might think that bringing in a professional firm that deals with audit representation will annoy the agent or make him or her think you are guilty – it will do quite the opposite, actually. Your IRS agent will generally prefer to deal with an attorney because they will prepare the requested information in a way that's easy for the agent to read and will do so in a dispassionate and professional way.

Tell the IRS what they want to know (and nothing more) Only about 2% of audits are random. The rest of the time, the IRS has very specific questions it wants answered, and will request forms and receipts accordingly.

That means two things: Send or bring all the forms you are asked to bring and answer all the questions to the best of your ability.

That second point is important. Whereas keeping your mouth shut is usually best when you are getting interviewed by the police, in an audit you're usually best served by stating your case and answering all of the agent's questions. After all, if the IRS is calling you in to talk about how much income you reported, it's probably because the agency believes you're underreporting. The audit is your opportunity to convince the IRS otherwise.

With that said, it is possible to overshare. This is not the opportunity to brag about how much money you have earned.

Get Low Cost Tax Relief for Tax Audit Representation

If you have received a notice of tax audit from the IRS or state, you may feel overwhelmed and unsure about how to proceed. However, it's important to remember that you have options, including low cost tax relief services that can help you navigate the audit process.

Low cost tax relief providers offer audit representation services that can help you understand your rights and protect your interests during an audit. They can assist you in gathering the necessary documents and information, communicating with the IRS or state on your behalf, and developing a strategy to defend your position.

Low cost tax relief providers typically employ licensed tax professionals, such as enrolled agents, who have the knowledge and experience to represent you effectively during an audit. They can also offer flexible payment options, making it easier for you to obtain the help you need without breaking the bank.

If you have received a notice of tax audit, it's important to take action as soon as possible. Ignoring the notice will only make matters worse, and attempting to represent yourself may result in costly mistakes. By working with a low cost tax relief provider, you can ensure that your interests are protected and increase your chances of a successful outcome.

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