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IRS audit representation, also called Audit Defense, is a service in which a tax or legal professional stands in on behalf of a taxpayer, either an individual or legal entity. This is during an Internal Revenue Service or state income tax audit.
What triggers an IRS Audit?
The IRS regulates income taxes and ensures that all tax issues are paid back in a timely and legal manner. In some circumstances, the Internal Revenue Service may need clarification regarding the amount of taxes owed and to what extent the dues have been paid.
What is IRS Audit Representation?
If a taxpayer is struggling with an audit problem, they have the right to tax audit representation. Each and every citizen deserves proper representation.
During an income tax audit, federal and state tax authorities grant the taxpayer permission to consult with an authorized representative.
This representative must have the required credentials and the legal right to practice before the IRS or state. They are typically an attorney, certified public accountant (CPA), or enrolled agent. The purpose of an audit representative is to best approach advocating on behalf of the taxpayer. They help the taxpayer to prepare all requested documents. They generally handle all correspondence on the taxpayer’s behalf, including attending required meetings.
What can a Tax Audit Representative do for you?
– Act as a direct line of communication
– Identify which portion of your return is being audited
– If applicable, eliminate a proposed tax issue
– Negotiate an IRS-suggested total tax problem
– Present an Offer in Compromise (OIC)
– Present an Installment Agreement
– Protect your rights as U.S. taxpayer
– Financial savings; to not pay what you do not owe
– Help on Notice CP22E
– Maintain and organize necessary paperwork
– Defend audit, and appeal if necessary
What needs to be done for Audit Representation?
First, taxpayers must be informed of their rights and understand tax return laws. Victory Tax Lawyers has audit representatives ready to speak with you today. We are knowledgeable in income tax audit situations, tax refunds for businesses, and any additional tax-related you may have. Based on statistics, the average taxpayer is unaware of tax law. This can lead to major issues upon IRS audit representation. Our educated, experienced attorneys have years of knowledge to help you properly handle an IRS audit.
You can count on Victory Tax Lawyers’ authorized representatives to protect your rights as they guide you through the entire audit process.
What to do if you get Audited?
Respond to the Letter
When it comes to dealing with the IRS, ignoring them is the worst thing you can do. It won’t make the situation go away and often makes it worse.
Determine if You Want Legal Representation
Typically, the letter you receive in the mail is simply a request for information. This could be something small, like asking you to mail in your 1099 form or your receipts for business expenses deducted. In this case, mailing the requested documentation is generally enough, and legal representation is not necessary.
However, if you can’t find the information requested or if an agent has asked to meet with you, you should hire legal representation. You will need to grant power of attorney to your audit representative. This allows them to handle everything on your behalf.
Give Them Information: Answer the Questions
During the interview, answer the agent’s questions to the best of your ability. This is a chance to make your case. Be honest and forthcoming with all information.
NEGOTIATE & APPEAL
When the audit is complete, the IRS agent will assess your tax liability with penalties included. This assessment has the opportunity for appeal. Appealing can be a form of negotiation. The IRS may consider striking a deal in order to prevent a prolonged case. In this scenario, it’s beneficial to hire skilled audit representation, such as a tax attorney. An experienced tax attorney will know when the IRS’ lawyers are willing to negotiate and settle to avoid going to court.
Contact Victory Tax Lawyers
We’ve provided many clients with audit representation and would love to do the same for you. Our trusted advisors will help you understand your rights as a taxpayer and mediate between you and the taxing authorities. We will give you the protection you deserve and the peace of mind that comes with it.