What Is Tax Audit Representation?

Tax audit representation, also known as audit defense, involves a tax or legal professional acting on behalf of a taxpayer (whether an individual or a business) during an IRS or state tax audit. Taxpayers are allowed to have a representative during audits, provided the person is authorized to practice before the IRS or the relevant state tax authority. Acceptable representatives include United States Tax Court Practitioners (USTCP), Enrolled Agents (EA), and Attorneys.

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An audit representative crafts a strategy to defend the taxpayer’s case, assists in gathering the necessary documentation requested by the tax authority, and typically handles all communication and meetings with the IRS or state tax officials on the taxpayer's behalf.

What Happens If You’re Audited?

Getting audited can be stressful, but most audits (about 70%) are simply requests for additional documentation via mail. These are typically resolved by submitting the necessary forms, like a 1099 or receipts for deductions. However, some audits involve in-person meetings with an agent, which can be more intimidating.

Key Steps to Take During a Tax Audit:

1. Don’t Ignore IRS Correspondence: Respond to the IRS promptly. Ignoring the issue won’t make it go away. If needed, you or your representative can request a short extension to gather the required documentation.

2. Determine If You Need Representation: 

•  For simple document requests, you may not need a professional.  

•  If you cannot locate the required information or are summoned for an in-person audit, it’s wise to hire a tax professional, such as an EA or USTCP. You’ll need to grant them power of attorney to act on your behalf.  

3. Stick to the Requested Information: The IRS usually audits with specific questions in mind. Only provide the documents or answers they ask for, without volunteering unnecessary details. Oversharing can complicate the process, so let your representative guide you.

After the Tax Audit

Once the audit concludes, the IRS will determine if any additional taxes or penalties are owed. If you disagree with the findings, you can appeal. Often, the IRS is willing to negotiate a settlement to avoid prolonged legal battles. Having an experienced EA can be invaluable at this stage to escalate and resolve the case in your favor.

Why Choose Professional Audit Representation?

If you’ve received a notice of audit, it’s best not to handle it alone. Even if you think you’ve done nothing wrong, professional representation ensures your rights are protected and that the process runs smoothly. A knowledgeable representative acts as a buffer between you and the tax authority, shielding you from unnecessary stress and complications. They can also prepare and present your case effectively, whether the audit is personal or business-related.

Most audits can be resolved through correspondence without requiring in-person appearances, allowing professionals to assist clients nationwide. From assembling documentation to negotiating settlements, professional audit representation ensures that you’re well-prepared and positioned for the best outcome.