Audit Defense Representation

An Audit is a review/examination of an organization's or individual's accounts and financial information to ensure information is reported correctly according to the tax laws and to verify the reported amount of tax is correct. 

An Examination is typically initiated if the computer indicates the amounts reported on a tax return are incorrect or inaccurate in comparison to information reported by another entity. 

For simplicity, we will refer to all Examinations and Audits collectively as Audits.

The process of selecting a return for Audit usually begins in one of two ways. One way is to use computer programs to identify returns that may have incorrect amounts. The programs may be based on information returns, such as Forms 1099 or W-2, on studies of past examinations, or on certain issues identified by other special projects. 

Another way is to use information from compliance projects that indicates a return may have incorrect amounts. These sources may include newspapers, public records, and individuals. If it is determined the information is accurate and reliable, the IRS may use it to select a return for Audit. 

Most taxpayers’ returns are accepted as filed. The number of tax returns selected for audit is about one per one thousand tax returns filed, however, there are certain elements of a tax return that may increase your likelihood of being Audited. 

Check our 23 IRS Audit Red Flags eBook!

You are not required to have representation during your Audit; however, we strongly advise you to have your notice reviewed and discuss your situation with one of our consultants before deciding to represent yourself.

If your books and records are inaccurate or incomplete, you may be able to reconstruct your expenses, using standard industry averages. If time permits, we encourage you to have your bookkeeping completed so that you may get all the deductions you are entitled and minimize any additional tax assessments.

We can help, ask us about our Bookkeeping Services.

If taxes are assessed, you will likely be assessed penalties and interest as well. 

If you are unable to full pay the tax liability, you my request an Installment Agreement. 

You may also be eligible for Penalty Abatement

If you disagree with the results of your Audit, you may consider an Appeal or Audit Reconsideration in certain circumstances. Audit Reconsideration is a process used to help you when you disagree with the results of an IRS audit of your tax return.

If you have new information to present or were denied credits, Audit Reconsideration may be recommended.