TAX AUDIT REPRESENTATION

Why seek representation?

An Audit requires a close examination of a business or individual returns and transactions. A knowledge of tax law and procedure as well as accounting procedures. A complete review of all documents that will be associated with audit must be performed. Because of this it is our opinion you should seek out audit defense to represent you in front of the IRS or State.

Often times the audit seems like it may only cover one or two years, so taxpayers and businesses think they can handle it on their own. After the audit of the one year is done, other years may become flagged. Before you know it you have stepped into a mound of quicksand and can’t get out.

You need a strategy before you ever enter into an audit. Having a tax professional to help you organize your documents and present a clean case can mean a world of difference in the outcome of your audit. Also a major component of the audit is knowing the answers if you are not going to provide the requested documents or they don’t exist.

Many Taxpayers try to handle an audit on their own. They think they are saving a few dollars and will be okay on their own. What often happens is the audit costs them more, than if they were to hire representation and have they negotiate better terms. Auditors are highly skilled well trained individuals who know how to get more information that you are legally required to provide. They hope that you will be ignorant or out of fear you will provide documents that by law you are not required to release. We find taxpayers are not benefited by attending their audit. In fact in most of our audits we suggest that our clients not be present during the proceedings.

How can we help?

Our experienced tax team will review all your audit documents and help explain them to you. We will complete a research and analysis of all the issues involved in your audit. We will advise you as to what items you need to provide and which ones you do not. We will assist you in compiling the documents into a clean organized binder. This will make the auditor know you are prepared, make their job easier, and make a huge impact on their overall cooperativeness. After we complete the audit we will contact you with the findings and explain them to you. If we are not satisfied with the outcome of the audit we can discuss the possibility of appealing the decision and assist you in that process.

What is included in Audit Representation?

• We will relieve you of the obligation of talking to the auditor.
• We will speak directly to the agency on your behalf.
• We will be available to answer any questions you may have about the process.
• We will communicate with the auditor and answer their questions about your tax returns.
• We will help prepare legitimate arguments on your behalf and present them to auditor.
• We will help provide any follow up documentation requested by the auditor.
• We will perform detailed analysis and research on your specific case.
• We will negotiate on your behalf.
• We will help to settle any claims with the tax authority.
• We can help with appeals process if necessary.

Audit Tips

• Do not hold the audit in your home or office have a neutral meeting place to conduct the audit
• Make your auditor happy have up to date formats and a high level of organization
• Have a space for the auditor to sit and review all documents without interruption
• Be available to answer questions the auditor may have
• Have realistic expectations if you are being audited there is a good chance you will owe something

The Bottom Line

If you have received a notice of audit it is in your best interest to exercise your right to representation. You don’t want to miss time from work and have the hassle of compiling and organizing tons of paperwork. You will feel better knowing a professional is handling your audit and when it is over you will feel like you have the best outcome the tax law will allow.