IRS Audit & Representation Process
Understanding how audits work and how professional representation protects your interests.
What is an IRS Audit?
An IRS audit is an examination of your tax return to verify that information is reported correctly and that taxes are calculated accurately. The IRS uses statistical sampling and other methods to identify returns for examination. An audit doesn't necessarily mean something is wrong—it's simply a verification process.
The scope of an audit can range from a simple correspondence examination (by mail) to a more complex field examination (in-person meeting). Most audits focus on specific items rather than a complete examination of the entire return.
Types of Audits
Correspondence Audit
The most common audit type. The IRS contacts you by mail requesting specific documentation or information. You respond by providing the requested materials. This process typically occurs entirely by mail and telephone.
Timeline: 30-60 days
Office Audit
You're invited to meet with an IRS agent at a local IRS office. This is typically for a limited examination of specific items on your return. You bring documentation and participate in discussions about particular deductions or income items.
Timeline: 60-90 days
Field Audit
The IRS agent conducts an on-site examination, often at your business location. This is typically for more complex examinations involving businesses, significant deductions, or issues requiring detailed investigation. The scope may be broader than office audits.
Timeline: 3-12+ months
The Audit Process: Step by Step
You Receive a Notice
You receive a notice from the IRS (typically Form 556 or 556-B) indicating that your return has been selected for examination. The notice specifies which items are being examined and requests specific documentation.
What to do: Don't panic. Contact us immediately for guidance.
Initial Assessment & Planning
We review the audit notice, analyze the items being examined, gather documentation, and develop a representation strategy. We determine your strengths and potential vulnerabilities.
Timeline: 1-2 weeks
Document Submission
We prepare and submit all requested documentation in an organized manner. We include explanatory letters supporting your position and addressing each examination item comprehensively.
Timeline: Varies based on IRS deadline
IRS Agent Examination
The IRS agent reviews documentation and may request additional information. For office or field audits, we attend meetings with the agent to represent your interests and explain your positions.
Timeline: Several weeks to months
Examination Report
The IRS issues a report detailing its findings. Items may be accepted as reported, adjusted, or disallowed. We review the report and discuss options: accept the findings or request an appeals conference.
Timeline: 30-60 days after last interaction
Appeals or Settlement
If you disagree with the findings, we can appeal to the IRS Appeals Office. We prepare appeal briefs and present your case to an appeals officer who is independent of the examining agent.
Timeline: Several months
Final Resolution
A final determination is issued. You may accept it, or if still disagreeing with significant issues, pursue litigation in Tax Court or other forums. We'll advise you of all options.
Timeline: Varies
How Professional Representation Helps
Reduces Your Stress
We handle all communication with the IRS. You don't have to navigate audit procedures alone or worry about saying something that could jeopardize your position.
Protects Your Rights
We ensure you're treated fairly, your rights are protected, and the IRS follows proper procedures. We advocate for your interests throughout the process.
Develops Strategy
We analyze your situation, identify strengths in your position, and develop a comprehensive strategy to minimize adjustments and support your return positions.
Provides Expert Knowledge
Our expertise in tax law, IRS procedures, and audit processes helps us effectively present your case and negotiate with the IRS agent.
Negotiates Effectively
We negotiate with the IRS to achieve favorable settlements when full concurrence isn't possible. Many issues can be compromised to reach acceptable resolutions.
Explores All Options
We ensure you understand all available options—from accepting findings to pursuing appeals—and advise based on your specific situation and goals.
What to Expect When Working With Us
Clear Communication
We explain what's happening in clear language and keep you informed throughout the process.
Proactive Representation
We take the initiative to gather documentation, develop arguments, and present your case effectively.
Professional Advocacy
We advocate for your interests, challenge unreasonable IRS positions, and work for favorable outcomes.
Realistic Expectations
We provide honest assessment of strengths and weaknesses, helping you make informed decisions.
Confidentiality
All information is kept strictly confidential under IRS Circular 230 and applicable law.
Facing an IRS audit?
Don't navigate it alone. Contact us today for professional representation and peace of mind.
Schedule a Consultation