Audit Representation

Receive an IRS Audit Letter?

Getting an IRS Certified mail and learning that you will be facing an IRS audit is highly feared by most taxpayers. Understanding the IRS audit process is crucial upon receiving an audit letter, as it highlights the complexity and importance of the examination of an individual’s or business’s tax return by the Internal Revenue Service (IRS) to verify that income, expenses, and credits are accurately reported.

Nobody wants to receive the dreaded IRS Audit letter—maybe even an IRS certified letter. Whether you are innocent or guilty, it still strikes fear in people because they have no idea what to expect—one person or one business up against the government? That seems a little unbalanced already, just from a power perspective.

Don’t meet with the IRS alone. It’s best, of course, to get professional assistance when dealing with an IRS tax audit. After all, you are going into this situation cold and have no idea what to say or what not to say. If you do have a skilled tax audit attorney helping you, he will communicate to the IRS that you are taking it seriously and that they will have to do their very best to try and prove the case against you.

Keep in mind that the chance is good that your number just happened to be picked; sometimes there is no rhyme or reason as to who gets selected. And you don’t really have a choice; you are pretty much forced to comply.

Types of IRS Audits

If you are facing an IRS audit, it’s probably one of three types:

• Office Audit

Office audits take place at the taxpayer’s local IRS office, facilitating face-to-face review of tax returns and supporting documents by IRS agents. While offering interactive engagement, they demand meticulous preparation due to their potential time-consuming nature and the necessity for compliance with IRS requirements in income tax audits.

• Correspondence Audit

Also known as mail audits, these are conducted via written correspondence. This type of audit involves the IRS sending letters requesting specific documentation or explanations regarding tax return items. Taxpayers must respond accurately within specified timeframes, as these audits typically address straightforward issues like income discrepancies, demanding careful attention to detail for effective resolution.

• At-Home Audit

In at-home audits, IRS agents visit the taxpayer’s residence or business premises for onsite examination of records. Although convenient, these audits can be intrusive and intimidating, requiring full cooperation from taxpayers to ensure their rights are protected throughout the process.

What types of documents do you need to prepare for an IRS audit?

Since the law requires that you keep the records you used to prepare your tax return for at least three years from the date of your filing, preparing the supporting documents should not be a problem. Generally, you will receive a notice from the IRS that specifies the records that will be requested.

Below are some of the documents that will most likely be requested from you to support the income, credits, and deductions on your return:

• Receipts
• Invoices
• Canceled checks
• Legal papers
• Loan agreements
• Tickets (travel or lotteries)
• Medical records
• Theft or loss documents
• Employment documents
• Schedule K-1

It is important that you organize these documents in a clear and systematic manner to make the audit process smoother and more efficient. On top of that, you should be prepared to provide explanations for any discrepancies or inconsistencies found in their records. Considering the complexity of IRS audits, involving a tax professional in organizing and preparing the necessary documents can be invaluable.

Our tips and advice when preparing for IRS audits

One piece of advice is to perform an audit of your records on your own first. Then you’ll want to do it again in our office. This proactive approach is a great way to prepare, so you know where the potential landmines are, if any, and ensures you’re ready with a solid defense strategy should the IRS or state income tax audit occur.

If you are being audited for a specific year, the investigation may expand to other years as the auditor goes through the records. It’s crucial to understand the complexities of tax law during this phase to protect your rights and minimize potential penalties.

Meeting with the IRS Auditors in either their office or our office is the only way to go; you never want them stepping foot inside your house. They send their best people out for those audits, and it can be very intimidating. Having a tax audit representative by your side during these meetings can significantly reduce the stress of the situation. A professional can handle the correspondence, develop a defense strategy, and ensure your case is presented accurately and effectively.

It’s not a surprise that audit rates for every kind of taxpayer have gone up over the past few years. Individual taxpayers have seen a 25% increase and taxpayers with high net worth have seen their audit rates double. If you are an S-corporation, you may be one of the 5,000 companies selected over the past few years by the IRS for a random audit. They are doing everything they can to stay on top of small businesses.

Prepare for your IRS audit confidently; consult with us today!

At the law office of Steven N. Klitzner, we deal with the IRS directly on your behalf as your audit representative. Our experienced team understands the complexities of the tax system and can navigate the audit process with ease, representing taxpayers during IRS audits. We will help you prepare and organize all necessary documentation, review your financial records, and provide expert guidance every step of the way.

Don’t let the stress of an IRS audit consume you; contact the law office of Steven Klitzner at (305) 564-9199 for a free and confidential consultation today. Our comprehensive tax audit representation services ensure you benefit from having a dedicated professional defending your rights and negotiating on your behalf throughout the auditing process.