Understanding Audit Representation
Also known as audit defense, audit representation is a type of tax debt resolution service. A legal or tax professional will stand in on behalf of a taxpayer during an IRS tax audit process. The IRS allows enrolled agents, CPAs, and attorneys to represent taxpayers before the IRS in income tax audits. Your audit representative is trained to develop the strategy necessary to defend your position. He or she assists you in the preparation of all documents required by the taxing authority. In many cases, your audit representative will handle all correspondence and attend all meetings on your behalf.
Why Will You Receive an IRS Audit?
The IRS audit process is designed to collect the appropriate revenue for the government and increase the nation’s tax compliance. They compute taxpayers’ deductions based on their income levels. If your deductions vary greatly from how the IRS normal computations, the chance of error on the return becomes higher. Those problematic returns are more likely to be audited. In many cases, tax laws are subject to interpretation. There is currently no perfect and/or correct tax return.
During an office audit, the Internal Revenue Service agent examines the taxpayer records with an in person meeting, usually at an IRS office.