If you or your company are being audited by the Internal Revenue Service, this is when proper IRS tax audit representation can help. Unfortunately, too many people believe that such representation is either unnecessary or having their CPA is good enough. And while having a trained tax preparer, an accountant, or even a CPA is beneficial, that all changes when the IRS decides to conduct an audit. There is an inherited conflict of interest between you the taxpayer and your CPA, the auditor – IRS Agent, can ask questions like who took this particular position on the tax return, will the CPA protect themselves or put you in a disadvantaged, awkward position. Hiring a representation firm is the way to go about IRS audit representation help.
Get a free evaluation today 1-877-78-TAXES [1-877-788-2937].
Of course, before you choose to get the proper audit representation from a tax firm, it is helpful to know why your tax returns were selected for an audit. Keep in mind that the IRS is required to randomly select from all tax returns a certain percentage that will be audited, even if there is nothing wrong with the return itself. Forms 1040, 1041, 1065, 1120, 1120S, Schedules A, B, C, D, E, F and other worksheets.
However, most IRS audits are conducted because there is something that does not add up, something that stands out which requires further investigation. This is when having the right IRS tax audit representation can really help.
Audit Tax Issues
There are several reasons why the Internal Revenue Service may be conducting an audit. You may be surprised to learn that not all audits are the same and getting IRS tax audit representation may not be necessary for at least one reason.
Random: Every year, the IRS is required to randomly audit a certain percentage of tax returns, 1040, 1041, 1065, 1120, 1120S. This means that some tax returns are checked for reasons that have nothing to do with whether they need to be audited or not. In such cases, you will usually get a letter from the IRS informing you of the random audit.
And another letter informing you that everything checked out. In this case representation is not needed unless they find something.
A Mistake was Found: In other words, something in your tax return did not check out properly. It could be a mistake in the figures, a misunderstanding of the instructions, or not having everything filled out properly. Whatever the case, you will be informed that something is not right. In many cases, this means that the tax return is sent back to you for corrections.
If this happens and you make the necessary corrections, then you probably do not need any representation.
A Meeting with an IRS Agent: If you receive a letter informing you that an IRS agent will meet with you, either at their office or yours, that’s an indication of something serious. This is usually more than just a mistake. It is a serious inconsistency or even a suspected criminal infraction if you are requested to meet with the IRS in person. It is as that point where you will need proper IRS tax audit representation.
Our Tax Representation Firm Can Help
There are good reasons why choosing our tax firm is the best choice when facing an audit, especially one that has tax liability ramifications.
Proper Representation: For many, hiring their CPA or accountant is the typical reaction when needing IRS tax audit representation. However, there are limitations to their service which makes them less than desirable when dealing with the Internal Revenue Service – see first paragraph above about possible conflict. Forms 1040, 1041, 1065, 1120, 1120S, Schedules A, B, C, D, E, F and other worksheets.
Our tax representation firm will protect your rights, and offer you options to even the odds against the IRS.
- Your rights are defended
- Assistance with negotiations
- Appeal negative outcomes
All three of these attributes are essential when you are being audited by the IRS. Your rights are at the forefront of our representation. That means you will be treated fairly and understand your rights, all options before having to make any decision.
Negotiations is often a part of dealing with the IRS, especially when they are looking to settle quickly in case you owe them more than what you have paid. By having a proper tax firm by your side, they can act on your behalf. This means that you may have to pay far less than what was originally owed, although that will depend on the circumstances.
In rare cases, the Internal Revenue Service may disagree, reject the audit. If so, you will need the best in IRS representation in Appeals. Having knowledgeable, experienced tax representatives by your side can make all the difference if you have to appeal negative decisions or outcomes. Forms 1040, 1041, 1065, 1120, 1120S, Schedules A, B, C, D, E, F and other worksheets.
Get a free evaluation today 1-877-78-TAXES [1-877-788-2937].
In addition to these attributes, there are other good reasons why you should consider getting an actual tax representation firm to represent you during this time.
Experience: EAs, CPAs, Tax attorneys, especially those that have built up years of service in the industry have insight that provides a greater window into the intent of the tax audit itself. This means understanding the difference between an ordinary audit and one that may be looking for criminal intent. Having this type of insight can provide you with more information in case the worst should occur.
Guidance: Arguably the biggest fear when facing an IRS audit is the unknown. For many people, it is the uncertainty which causes the fear, aggravation, and anxiety that makes this time so stressful. Having an experience tax firm by your side not only provides comfort, but more importantly the knowledge needed to overcome the uncertainty.
By understanding what is going on and knowing what steps to take, our tax firm can greatly reduce the stress and provide guidance to whatever actions you decide to take.
Getting the right IRS tax audit representation means that you have knowledgeable, experienced power of attorneys by your side who can provide expert guidance, help you understand what is happening, and protect your rights at all times. While an accountant or CPA can provide you with proper tax preparation, only a tax firm can represent you when facing an IRS audit and possible appeal.
Field examinations/audits are conducted by RAs revenue agents operating out of a local Service office. Field examinations/audits involve a more detailed review of the books and records of the taxpayer than a correspondence examination and generally involve interviews or discussions with the taxpayer or the taxpayer’s representatives.
All examinations of corporate taxpayers with gross receipts greater than $250,000 are handled by revenue agents. Taxpayers who do not run businesses are not likely to experience field audits. Field examinations usually take place at the taxpayer’s place of business. Revenue agents are better trained and generally are more skilled than other Service examiners.
Office audits are conducted at local Service offices. They usually involve more complicated fact issues than those presented in correspondence examinations, but less complicated issues than those encountered in field examinations. Office audits generally involve an interview or discussion with the taxpayer or the taxpayer’s representative. Typical issues handled in office audits include fact-intensive questions, such as entitlement to dependency exemptions, head-of-household filing status, and whether earned income was fully reported. Office audits are conducted by TCOs tax compliance officers.
If the taxpayer requests, the service center (or IRS campus) will generally transfer a correspondence examination to the local office so it can be handled as an office audit rather than as a correspondence examination. This may be particularly helpful with respect to individuals with limited English proficiency or in situations where there are many supporting documents.
If you are facing an audit that requires meeting with the IRS, your first call should be to the experienced tax firm of Mike Habib, EA, that provides you with the proper representation. Call us at 1877-78-TAXES [1-877-788-2937] for a free consultation and find out how you can be assisted during this stressful time. By having our experts on your side, we will help you by providing the best in IRS tax audit representation.