Audit Representation

Professional Audit Representation: Your Lifeline to Saving Your Finances from Tax Audits

We want to make sure you pay as little as possible, and we will always be transparent about what you can expect from IRS collections. As experts in audit representation, we will ensure we get the job done for you as efficiently as possible. Contact us today!

Lifeline Tax Solutions

What is Audit Representation?

As defined by the IRS, 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.

The primary purpose of a tax audit is to ensure compliance with tax laws and regulations, thereby maintaining the integrity of the tax system. Audits are designed to identify errors, discrepancies, and potential instances of tax evasion or fraud.

During a tax audit, the IRS reviews the taxpayer’s financial records, including tax returns, receipts, invoices, and other supporting documentation, to assess the accuracy and completeness of the reported information. The audit process may involve correspondence with the taxpayer, interviews, document requests, and on-site inspections, depending on the type and scope of the audit.

 Don’t let an IRS audit overwhelm you. Let Our Team of Experts Defend Your Rights and Negotiate on Your Behalf.

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How will you be notified of an IRS audit?

If the IRS decides to audit your account, they will send you a notice by mail. The IRS won’t initiate an audit by telephone.

Types of Tax Audits

There are four types of tax audits: correspondence, office, field, and a Taxpayer Compliance Measurement Program (TCMP) audit:[1]

Correspondence Audits

Correspondence audits, also known as mail audits, are conducted remotely through written correspondence between the taxpayer and the IRS. The IRS typically requests specific documentation or information to verify certain items or adjustments on the tax return to match IRS data. Correspondence audits are the most common type of audit. [1]

Office Audits

Office audits are often conducted for more complex tax issues that cannot be resolved through correspondence alone. It usually takes one day to finish. During an office audit, the taxpayer is asked to meet with an IRS auditor at a local IRS office and may be asked to provide additional documentation and answer questions about their tax return, such as deductions, business profits or losses, or rental revenues and expenses.[1] 

Field Audits

Field audits are conducted at the taxpayer’s place of business or residence. IRS auditors visit the taxpayer’s premises to review financial records, conduct interviews, and inspect assets. Field audits are typically reserved for high-income individuals, businesses, or cases involving significant tax liabilities.

Taxpayer Compliance Measurement Program (TCMP)

The IRS uses audits conducted under the Taxpayer Compliance Measurement Program (TCMP) to keep the DIF system up to date.[1] Anyone who has to go through a TCMP audit will have to back up every single line of their tax return with documentation.

Common Reasons Why the IRS will Audit

The IRS selects tax returns for audit based on various criteria, including:

Random Selection: As part of the IRS’s efforts to keep people paying their taxes and stop people from evading them, some tax returns are chosen at random to be audited.

Related examinations: Your returns may be chosen if they have anything to do with issues or transactions involving other taxpayers, like business partners or investors, whose returns were chosen for audit.[2]

Information Matching: Some tax returns are looked at because the income listed on the tax return does not match the information on payer reports, like Forms W-2 from employers or Form 1099 interest statements from banks.[3]

Red Flags: Some tax deductions, credits, or reporting patterns may cause concern and make it more likely that you will be audited. Common red flags include:

  • Large charitable contributions
  • High Income Discrepancies
  • Reporting Significant Losses
  • Huge Business Expense Deductions
  • Math Errors[4]

Taxpayers can better prepare for and handle audits if they know about these types of audits and the most common reasons why they happen. If selected by IRS, taxpayers can minimize their risk of being audited and ensure a smooth audit experience by maintaining accurate records, complying with tax laws, and seeking professional assistance when necessary 

Don’t face the IRS alone. Let us handle your audit with expertise and care.

Reach Out Today for Reliable Representation!

(904) 595-8471

 

When Do You Need Tax Attorney Representation?

Tax attorney representation can be beneficial in many ways, such as:

IRS Audit

Consider hiring a tax attorney if you are being audited or have a complicated tax problem. Having a tax lawyer represent you during an audit makes sure that you get the expert advice and support you need to get through the audit, answer IRS questions, and keep potential liabilities to a minimum.

Tax Disputes

A tax attorney can help you if you have a tax dispute, want to sue the IRS or the state over a tax issue, or want to go to the U.S. Tax Court for a hearing. [5] Tax lawyers can represent you in negotiations or advocate for your interests in tax court proceedings. [6]

Tax Debt Resolution

If you have an outstanding balance with the IRS that you want to negotiate or contest, a tax attorney may be able to help you pursue options such as an offer in compromise, innocent spouse relief, installment plans to pay tax bills over time, [5] or penalty abatements to settle your tax debt and prevent further collection actions.

Tax Planning and Compliance

Tax attorneys can help you minimize your tax obligations, ensure compliance with all tax laws and regulations, and structure transactions in a way that saves you money on taxes.

Tax Fraud or Evasion Allegations

If you’re facing allegations of tax fraud or evasion, it’s essential to seek legal representation from a tax attorney who can defend your rights, provide legal advice, and represent you in criminal tax proceedings if necessary.

Estate Planning

Tax attorneys who specialize in estate planning and probate taxes can help you come up with ways to pay the least amount of taxes on your estate, write wills and trusts, and give you advice on probate proceedings and managing your estate.[5]

How Can Tax Attorneys Help You During an Audit?

Reviewing and Organizing Tax Records

Tax attorneys can help you carefully go over your tax records, financial documents, and other important papers to make sure they are correct and complete. They can help you gather the proof you need to support your tax return, spot any possible problems or red flags, and prepare a comprehensive response to IRS inquiries.

Communicating with IRS agent on your behalf

During an audit, one of the most important things a tax lawyer does is talk to the IRS on your behalf. Tax attorneys are proficient communicators and are capable of persuasively communicating your position.

Negotiating Settlements of Payment Plans If Necessary

If the IRS audits your tax return and finds mistakes or other problems, tax attorneys can negotiate and work out a deal with them. 

Representing You in Appeals or Litigation if the Audit Escalates

Tax attorneys can help people who are having disputes with the IRS that can not be solved through audits. These lawyers can take part in administrative appeals or tax litigation proceedings. As experts in both tax law and litigation strategies, tax lawyers can effectively represent your interests in tax court or before the IRS Appeals Office.

Facing an IRS audit can be stressful.

Contact Us Now and Alleviate Your Worries!

(904) 595-8471

Get a Tax Attorney to Represent You

People who are the subject of an IRS audit should reach out to a qualified tax attorney for advice or to represent them. It is not a good idea to try to handle tax audits on your own because they can have big legal and financial effects. Tax attorneys have the knowledge, experience, and tools to help you get through the audit process, protect your rights, and lower your potential liabilities.

Unlike most companies, whether you’re a business owner, an individual taxpayer, or facing complex tax issues, we have tax attorneys on staff who will be directly assigned to your case. With their specialized knowledge and expertise, you can trust that your audit representation is in capable hands.

For every case we take on, we bring a strong sense of dedication, honesty, and discipline as a veteran-owned business. As a small company, we prioritize personalized attention and care for each client. Your case won’t get lost in the shuffle or passed from person to person. Instead, you’ll work directly with a dedicated team committed to achieving the best possible outcome for you.

Don’t face the IRS alone—reach out to us today to schedule a free consultation and take the first step toward resolving your audit issues soon.

  1. Tax Audit Definition | IRS Tax Audit | TaxEDU Glossary. (2024, February 23). Tax Foundation. https://taxfoundation.org/taxedu/glossary/audit/
  2. IRS Audits | Internal Revenue Service. (n.d.). https://www.irs.gov/businesses/small-businesses-self-employed/irs-audits
  3. https://www.irs.gov/pub/irs-news/fs-06-10.pdf
  4. Curtis, G. (2023, November 22). Avoid an Audit by Knowing These 6 Red Flags. Investopedia. https://www.investopedia.com/articles/pf/07/avoid_audits.asp
  5. Orem, T. (2024, January 11). When to Hire a Tax Attorney. NerdWallet. https://www.nerdwallet.com/article/taxes/tax-attorney
  6. Orem, T. (2024, February 13). 7 Reasons the IRS Will Audit You. NerdWallet. https://www.nerdwallet.com/article/taxes/reasons-irs-audit
  7. How A Tax Attorney Can Help – FasterCapital. (n.d.). FasterCapital. https://fastercapital.com/topics/how-a-tax-attorney-can-help.html
  8. G. (n.d.). When To Hire a Tax Attorney: 6 Reasons You Might Need One. Nasdaq. https://www.nasdaq.com/articles/when-to-hire-a-tax-attorney:-6-reasons-you-might-need-on
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