IRS Tax Audit Representation

Going through an IRS audit can be a tough process that makes you feel open and exposed. The audit officer will ask you to document and verify every income and expense item on your tax return. They will then adjust your taxable income based on their determinations. Audit officers are trained to be aggressive and they will work to discover an under reporting of taxable income. If they discover an under reporting of income then they will assess a deficiency against you. The IRS then typically notifies the California Franchise Tax Board that you under reported your income, and the FTB will issue an increased tax assessment against you, too.

Hiring a tax attorney to represent you during audit can help protect your rights as a taxpayer and free you to continue running your business. Hiring a tax attorney to represent you during audit can benefit you in many important ways:

  • We can advocate for a legal position that is in your favor.
  • We will meet with the IRS tax auditors on your behalf.
  • We will facilitate records production and make sure that the tax authorities only get what they are entitled to get.
  • We will receive and direct all communications from the tax authorities.

If you’ve already been subjected to an unfavorable audit or if an aggressive audit officer does not correctly apply the tax laws and regulations, then you have a limited time to challenge the audit. An audit can be challenged in the following ways:

  • Appeal from 30 Day Letter. After an audit is complete you should receive a General 30 Day Letter informing you of proposed adjustments to your tax return. If you agree with the adjustments, you sign and return the agreement form. If you do not agree, you can submit a request for appeal to the office that sent you the letter.
  • Appeal to Tax Court from 90 Day Letter. After a failed protest to appeals from a 30 Day Letter, or after neglecting to sending any response to the 30 Day Letter, the IRS will mail you a Notice of Deficiency which informs you that you have 90 days to appeal the IRS decision to the US Tax Court.
  • Request for Reconsideration. You can file a Request for Reconsideration with the IRS anytime after an assessment has been made, and the tax remains unpaid. If your Request is not granted, then you have the opportunity to appeal the Request to the IRS Office of Appeals.

If you have received an audit notice, are in the process of audit, or have just completed your audit, you could benefit from the services of a tax attorney. Call us today at (408) 459-8427 for tax help.