IRS Audit Representation: Everything You Need to Know

Regardless of financial expertise or years of experience in a business, anyone can receive audit notices from the Internal Revenue Service (IRS). Businesses unequipped to handle the experience can consult a professional to explain the intricacies of the paperwork and time required to pass.

Where can finance professionals get IRS audit representation? Using a guide can help everyone navigate to the most reputable source while learning what IRS audit representation comprises and what the results can be with the right partner.

Understand What IRS Audit Representation Is

IRS audit representation sounds like hiring a lawyer, because it is similar. These companies can include tax lawyers, certified public accountants and other tax authorities that help individuals during an audit. They are intermediaries between the client and the auditor, communicating on the client's behalf and organizing paperwork for submission. They also defend the client, fighting for the swiftest and most advantageous resolution.

Organizations like Polston Tax provide tax resolution services to lower or remove wage garnishments and liens, alleviate tax debt, assist with audits and more. These companies offer services such as appeals, bank levies, audit representation and IRS account investigation, among others, to provide relief from all angles of a tax situation.

The goal of an IRS audit representative is to ease the financial hardship clients would endure after an audit if they did not have the expertise to do so. Outsourcing this advice could be the difference maker that keeps a company afloat and allows it to continue growing for years.

Determine if Representation Is Needed

It is possible to represent oneself or a company in an IRS audit, but an experienced professional knows the fine details of tax law that most people are unaware of. These insights are a major advantage because they reinforce any defense, and the audit rate has changed over time depending on the government administration.

Additionally, there are many circumstances where the added oversight would be helpful. Many business audits are complex, involving overwhelming amounts of documentation that may be challenging to source and organize. Polston Tax can do this for clients and provide customized bookkeeping and tax services as they learn more about an organization to help it survive after the audit.

There are also many instances where there is a threat of a large tax bill. In cases where this is a significant liability for a business, representation is ideal. Many people are uncomfortable dealing with the IRS. Audit representatives know exactly how to speak the jargon and negotiate confidently, removing pressure on clients.

Know What Legal Protections Are Available

Tax and financial law, especially for businesses, is dense. Many are unaware of the full scope of their rights or even the most common reasons for receiving an audit, which a representative could explain in accessible terms. Everyone has the right to representation, a fair examination and the ability to appeal. Companies may not leverage these options if they do not have a trained professional handy.

Identify Potential Representatives

There are several types of IRS audit representatives, and organizations like Polston Tax offer free consultations to help clients better understand their situation before assigning the right resource.

For example, there are enrolled agents licensed by the IRS, CPAs certified by state boards of accountancy to provide tax expertise, and tax attorneys who can represent businesses in court if necessary. Having a variety of options for different stages of the process may be necessary, and a reputable company has professionals to fill every need.

Research and Vet Candidates

Companies can use a consistent methodology to compare potential candidates. The best IRS audit representation will exhibit these qualities:

• Robust credentials: Has extensive licensing, certification and education from respective third parties
• High praise: Maintains a solid reputation, as visible in reviews and testimonials
• Relevant experience: Represents clients in similar business situations, which could include a small business or enterprise-level resource
• Good first impression: Schedules interviews with prospective clients to discuss the case and determine whether the demeanor and method of the audit representation organization are the right fit

Where Can Businesses Get IRS Audit Representation?

Many firms are available, though finding a comprehensive solution with experience and certifications across a wide range of situations is challenging. Being able to handle everything from an independent contractor to a large business requires the skills that Polston Tax offers.

It has been operational since 2001 and is staffed by experienced professionals across all aspects of the auditing process. Its team can offer penalty abatement, small-business accounting and more to assist for the entire duration of the audit. This includes post-audit expertise that can make businesses better defended against future audits.

The professionals at Polston Tax want clients to feel prepared and knowledgeable going into an audit. They ensure everyone knows they will not be taken advantage of by the IRS and promise the most favorable outcome possible for the circumstances.

Prepare for a Consultation

Once businesses determine the company they want to partner with, they can schedule their first meeting. The consultation gives potential clients the opportunity to learn how audit representation operates. It is also the best time to ask questions and learn about the types of businesses the company is most familiar with.

These conversations are essential because they give the client an accurate representation of how every interaction will go. If communication is seamless, approachable and stress-free, it provides a solid foundation for the auditing process. Attentiveness and active listening are vital because prospective clients want to feel the representative understands and advocates for the business with the utmost confidence and clarity.

Engage and Cooperate With the Representative

Once a business has committed to an IRS audit representative, it must be responsive and compliant with any requests. There will likely be many signatures, document submissions and interviews. The representative will need to understand their clients' financial history and trends inside and out because this provides the best chance to defend them against the IRS. Clients should be as fast and understanding as possible when handling tasks from their representatives.

Preparing for the Best Outcome

An IRS audit request can feel daunting, but that is what representatives are for. They instill in companies the confidence and knowledge they need to get their finances in order and minimize the adverse impact of fines and court decisions. Contacting a resource like Polston Tax is the first step in forging a more stable growth trajectory for any business.