IRS Audit Defense & Representation
We all dread the thought of an IRS audit or examination. Audits can be intimidating because they require you to explain the nature of your income and substantiate the expenses and deductions claimed on your tax return. However, receiving an IRS Notice informing you that your return has been selected for examination does not mean or imply that that you have made an error or done something dishonest. Tax returns are selected for audit in a variety of ways including random sampling. The most important thing is not to panic and to realize that, if handled correctly, many IRS audits actually result in a refund or an acceptance of a return without change. When faced with an IRS audit, selecting a qualified Certified Public Accountant to provide IRS audit defense is well worth the investment. The CPAs at Professional Tax Resolution can quickly give you an idea of what to expect when facing an IRS audit.
Important things to know about IRS audits:
- Most local tax preparers are not equipped to represent you in an audit before the IRS. You should contact a licensed CPA who specializes in IRS audit defense representation.
- Many audits result in no additional tax assessments. However, a poorly conducted audit can result in a large additional adjustment which, together with penalties and interest, can equal as much as 100% of the original assessment
- If the IRS assesses additional taxes and interest, the adjustments are generally matched by the State making an already difficult situation much worse.