An IRS audit can feel scary and overwhelming. Did you know that you have the right to IRS audit representation? According to the IRS, “Any attorney, CPA, enrolled agent, enrolled actuary or other person permitted to represent a taxpayer before the IRS, who’s not disbarred or suspended from practice before the IRS, may submit a written power of attorney to represent a taxpayer before the IRS.” The Denver Tax Group has years of experience in helping you handle any tax trouble you may encounter. We will be with you every step of the way to make the process feel much more manageable. Let’s take a look at some of the basics of what an IRS tax audit is and why skilled representation is important.
What is an IRS tax audit?
An IRS tax audit is an examination conducted by the Internal Revenue Service (IRS) to verify that taxpayers have reported their income, deductions, and credits accurately and have complied with all tax laws of the US. The purpose of an audit is to ensure tax compliance and maintain the integrity of the tax system.
During an IRS tax audit, the IRS reviews a taxpayer’s financial records, tax returns, and supporting documentation to determine if there are any discrepancies or errors. The audit process involves a thorough examination of the taxpayer’s income, expenses, deductions, and credits claimed on their tax return.
There are three different types of IRS tax audits
- Correspondence Audit
This is the least invasive type of audit and typically involves the IRS requesting additional documentation or clarification for specific items on the tax return. It is usually conducted through mail or email.
- Office Audit
In an office audit, the taxpayer is asked to visit an IRS office to provide supporting documents and answer questions regarding their tax return. Office audits are more comprehensive than correspondence audits and may cover multiple aspects of the return.
- Field Audit
A field audit is an in-person examination conducted by an IRS agent at the taxpayer’s home, place of business, or accountant’s office. Field audits are typically reserved for complex or high-income tax returns and involve a more detailed review of the taxpayer’s financial records.
It’s important to note that being selected for an IRS tax audit does not necessarily indicate wrongdoing or suspicion of fraud. The IRS uses various methods, including random selection and computerized scoring systems, to choose tax returns for audit.
If you’ve been selected for an IRS audit, there are several compelling reasons why it is important to have tax professionals help with IRS audit representation:
- Expertise and Knowledge
Tax professionals, such as The Denver Tax Group have extensive knowledge of tax laws, regulations, and audit procedures. Whoever you choose to represent you should be well-versed in navigating the complexities of the tax code and can provide valuable guidance throughout the audit process. Their expertise can help ensure that your rights are protected and that you understand your options and obligations.
- Audit Experience
Tax professionals have experience dealing with IRS audits. They understand the audit process, the types of documentation and information the IRS typically requests, and how to effectively communicate with IRS agents. Their experience allows them to anticipate potential issues, identify areas of concern, and develop appropriate strategies for addressing them. At The Denver Tax Group, we have extensive experience in IRS audit representation.
- Representation
Having a tax professional represent you in an IRS audit can provide a buffer between you and the IRS. They can act as your spokesperson, communicating with the IRS on your behalf and handling all interactions and negotiations. This can alleviate stress and help ensure that your rights are protected throughout the audit.
- Preparation and Organization
Tax professionals can help you gather and organize the necessary documentation and records to support your tax return. They can review your financial records, identify potential red flags or inconsistencies, and help you address any issues before the audit. Proper preparation and organization can significantly enhance your chances of a favorable outcome in the audit.
- Strategic Advice
Tax professionals can provide strategic advice on how to approach the audit. They can help you understand the potential implications of different audit outcomes, such as proposed adjustments or penalties, and guide you in making informed decisions. They can also advise you on the best ways to present your case, respond to IRS inquiries, and present supporting evidence.
- Negotiation and Settlement
If the IRS proposes adjustments to your tax liability during the audit, a tax professional can assist in negotiating a fair resolution. They can analyze the proposed changes, challenge them when appropriate, and present counter arguments based on tax laws and regulations. Their goal is to help minimize any additional taxes, penalties, or interest you may owe.
The Denver Tax Group is your trusted choice for IRS audit representation.
We specialize in tax audits and we are the best IRS audit representation in Colorado. Having us as the tax professional by your side during an IRS audit can provide peace of mind, ensure compliance with tax laws, and help you achieve the best possible outcome. Our expertise, experience, and representation can significantly enhance your chances of a successful audit resolution.
Take a look at these reviews from our satisfied clients.
“This is a great company to take care of any IRS problems you may have. Any questions I had, I always received a prompt answer to my question! Another great thing is almost every year I needed to get my taxes done, I was living in another state. Mr. Elliott always takes care of me as if I am sitting right in front of him at his office! I am a very happy customer, and will tell my friends, and family, to tell their friends, and family to go to Denver Tax Group, for all of their IRS needs! Thank you Mr. Chad Elliott for all of your hard, and dedicated work that you have done for me, and the community!” -Leo
“Chadwick was great to work with, friendly, punctual, professional, and all details of the work were handled with care. He helped me make sense out of my chaotic mess of records and I really appreciated that.” -Lorenzo
In addition to IRS audit representation, the Denver Tax Group offers a variety of additional services. From tax preparation to delinquent tax returns and bookkeeping and payroll services, we are your go-to choice for all the tax and money-related services for your business.
Denver Tax Group is now located in Aurora, Colorado. Contact us today to get started on our bookkeeping and payroll services so you can concentrate on making your small business a lot bigger. Call now to schedule your appointment: 303-333-0363.
