IRS Audit Representation

No taxpayer wants to receive notice of an IRS audit (or similar correspondence from a state tax authority), but as a matter of course, the agency typically seeks to more closely scrutinize a certain number of returns each year. In some cases, it is a matter of random selection, but more often than not, the catalyst is a red flag on a return, which could include a seemingly out-sized gift or exemption. For businesses, an audit could be triggered based on how revenue, compensation and deductions are reflected on a return.

Even if the reasons for the apparently suspicious items are sound, once the IRS raises questions, it’s time to contact the professionals. At Aristide CPA, we have a great deal of experience dealing with the agency and fully understand the delicate balance that needs to be maintained when it comes to answering questions without triggering an unwelcome response.

It is worth keeping in mind that agency staff overseeing the process are charged with obtaining information that clarifies the matter at hand. Sometimes, they ask probing questions simply to see the response. In that case, a taxpayer without professional assistance may inadvertently provide incomplete or damaging information that leads the examiner to dig deeper or expand the scope of the audit. In the end, the result could be additional taxes, penalties and interest.