IRS audit representation and tax resolution
Selected for an IRS or state tax audit? With our IRS audit representation, we review your audit letter, organize your records, prepare the response and deal with the examiner for you under a power of attorney — so you don’t have to face the audit on your own. Owe back taxes you can’t pay at once? We also handle payment plans, penalty relief and Offers in Compromise.
Audit letters have strict response deadlines. Reach out as soon as you receive one.
What is an IRS audit?
An IRS audit (the IRS calls it an examination) is a review of your tax return to confirm that your income, deductions and credits were reported correctly. In addition, state tax agencies, such as the California Franchise Tax Board, run their own audits of state returns.
However, being selected doesn’t mean you did something wrong. Returns are often picked because of a mismatch with a W-2 or 1099, an unusually large deduction, or a related return being examined. Because of this, what matters most is responding on time, with the right records and a clear explanation.
Most audits start with an audit notice in the mail, often requesting documentation for specific items on your tax return. If the examiner decides you owe more, the IRS proposes additional tax, plus interest and, in some cases, tax penalties. Left alone, an audit can grow into a bigger tax problem, such as a balance due you can’t pay or an enforced collection notice.
That is where professional representation helps. With your authorization, our tax professionals handle the calls, letters and meetings with the IRS, so you don’t have to answer an examiner’s questions on your own. Many clients tell us that alone gives them peace of mind.
The IRS explains the process on its own IRS audits page. Still, reading about an audit is not the same as handling one. That is where IRS audit representation helps: a tax professional responds for you, so you are not dealing with the examiner alone.
Audits we help with
First, check your letter, because it shows the audit type. Each type works a little differently.
Correspondence audit
Handled entirely by mail. The IRS asks you to explain or document specific items on your return.
Office audit
You’re asked to bring records to an in-person interview at an IRS office. We prepare the records and can attend for you.
Field audit
An IRS revenue agent reviews your records in person, usually at your business or your representative’s office.
State tax audits
Audits by state agencies such as the California Franchise Tax Board, including residency and multi-state questions.
How IRS audit representation works
Review the letter
First, we read your audit letter with you and explain what’s being questioned.
- Tax years and items under review
- Response deadline
- Records you’ll need
Build the response
Next, we organize your documents and prepare a clear written response.
- Gather and organize records
- Rebuild missing records where possible
- Written explanation of each item
Represent you
Finally, with your signed power of attorney (IRS Form 2848), we deal with the examiner for you.
- Calls, letters and meetings
- Review of proposed changes
- Your options if you disagree, including appeals
Issues we often see in audits
- Income that doesn’t match a W-2 or 1099
- RSU, stock option and stock sale cost basis
- Business and Schedule C expenses
- Rental property income and deductions
- Charitable and itemized deductions
- Tax credits and dependents
- Foreign income and international reporting
- State residency and multi-state income
Our IRS audit representation covers audits by the IRS and state tax agencies. However, we do not perform financial statement audits.
Owe the IRS? Back taxes and payment options
If you have a balance you can’t pay in full or years you haven’t filed, we review your situation, explain your options in plain English and handle the paperwork with the IRS or California FTB.
Back taxes & unfiled returns
- Prior-year returns prepared and filed
- Balances confirmed against IRS transcripts
Payment plans
- Installment agreements set up to fit your budget
- Help stopping escalating balance-due notices
Penalty relief
- First-time abatement where you qualify
- Reasonable-cause requests with support
Offer in Compromise
- We evaluate whether you qualify to settle for less than you owe
- We prepare and submit the application
IRS audit questions
Do I need a tax attorney for an IRS audit?
Not usually. Enrolled agents, CPAs and attorneys can all represent taxpayers in an IRS audit. A tax attorney may be the better fit if a case could involve fraud or criminal issues. If we see signs of that, we will tell you and can work alongside your attorney.
What if I disagree with the audit results?
You can ask for a conference with the IRS Independent Office of Appeals. If the issue is still not resolved and the IRS issues a notice of deficiency, you generally have 90 days to petition the U.S. Tax Court. We explain each option and its deadlines so you can decide how to proceed.
Do you handle Offers in Compromise?
Yes. We review your income, expenses and assets to see whether an Offer in Compromise is realistic. If it is, we prepare and submit the application; if not, we look at other options such as a payment plan or penalty relief.
I owe back taxes and can’t pay in full. What are my options?
Common options include an installment agreement, penalty relief if you qualify, and in some cases an Offer in Compromise. The right choice depends on your balance, income and assets. We review your situation before recommending anything.
Can you guarantee the result?
No one can honestly guarantee an outcome with the IRS. What we can promise is a careful review, a well-supported response and clear advice on your options.
What should I do when I get an IRS audit letter?
Don’t ignore it. Note the response deadline, keep the letter, and don’t send original documents. Then contact a tax professional so the response is complete and on time.
Can you deal with the IRS for me?
Yes. Once you sign an IRS power of attorney (Form 2848), we can speak and correspond with the examiner on your behalf. In many cases you won’t need to attend meetings yourself.
How long does an audit take?
It depends on the type of audit and how many items are being reviewed. Correspondence audits are usually shorter than office or field audits.
What if I disagree with the audit results?
You may have the right to appeal. We’ll explain your options and the deadlines that apply to your case.
Do you handle state tax audits?
Yes. We help with state audits, including audits by the California Franchise Tax Board.
How much does audit representation cost?
It depends on the audit type and the number of items involved. We review your letter and give you a quote before any work begins.
Got an audit letter?
Tell us what the letter says in a free 15-minute call. We’ll explain what it means and what the next step looks like.
Monday–Friday, 9 am–6 pm Pacific