Should I represent myself in an Audit with the IRS?

What is an audit?

*1 As defined by the IRS: An IRS audit is a review/examination of an organization’s or individual’s accounts and financial information to ensure information is being reported correctly, according to the tax laws, to verify the amount of tax reported is substantially correct.

What are your rights as a taxpayer?

The right to privacy and confidentiality– you have the right to know why the information is being requested, how it will be used, and that information to be kept a private tax matter.

The right to professional treatment– you have the right to be treated in a professional and courteous manner by IRS employees.

The right to appeal- you have the right to appeal an audit determination with the IRS or in the court system. *2

The right to representation– as a taxpayer you have the right to choose skilled council that knows the ins and outs of a tax audit. It is your right to retain a skilled tax problem resolution attorney and have them represent you in an audit.

Have you been notified by the IRS of an upcoming audit?

Have you received Letter 566? This letter serves as notification of an audit that will be held by mail.

Did you receive Letter 2205-A (field audit) or Letter 3572 (in person visit)? This means your audit will take place face to face. You are required to call the IRS to schedule that appointment.

Did you receive a telephone call notifying you of an IRS audit? Make sure in this phone call the employee with the IRS states their ID number. This is very important when verifying this is an actual call from the internal revenue and not just a scam, do your research.

What should you do?

An audit is a very serious matter and not to be taken lightly. You have a few choices when it comes to an audit. You can represent yourself, you can have a representative attend the audit with you, or you can have the representative attend the audit without you present. It is usually our recommendation to have a representative perform the audit on your behalf.

Even if you think you can’t afford audit representation we advise you to call our office. We work with clients big and small and of all income levels. We want taxpayers to enter into the audit process educated and prepared. This is how we believe you will have the best possible outcome. If you are deciding between hiring a representative or taking care of an audit on your own please call us at (410) 872-8376 so we can speak briefly over the phone about your particular situation. It is our pleasure to help provide you a brief no cost phone consultation.

Things to consider?

• Do you know what you legally do and do not have to provide in an audit?
• Do you know the best places to hold an audit meeting?
• Do you know what you should and should not say during an audit?
• Do you have time to compile all the paperwork by yourself?
• Do you fully understand why you were selected for an audit?
• Do you have time to take away from work to attend the lengthy proceedings?

If you answered No to one or more of the above questions, we highly suggest you obtain representation.

*Resources*

*1 http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/IRS-Audits

*2 http://www.irs.gov/pub/irs-pdf/p1.pdf