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What Is Tax Audit Representation?

Tax Shark states that the Taxpayer Bill of rights allows citizens to engage qualified professionals to assist and streamline any tax interface situations with the Internal Revenue Service. In Tax Audit Representation, a taxpayer consults a trained professional who majors in IRS language, is familiar with their policies, and understands the audit process.

A tax audit occurs when your returns are incongruent with income and deductions. The IRS may look closely to verify all the information is correct and find the outliers. Failing to report income is also another reason that triggers an audit. For unreported income, the IRS cannot tax it. They see this as stealing from the government. They may access your W-2 and 1099 forms to see if your recorded income correlates.

The Duran Business Group reports that the IRS is also interested in how small to large businesses, even first to second-generation companies, file their returns. To avoid losing what you or your parents worked so hard to build to penalties, tax representatives can help avoid any violations. Even better, when engaging a competent firm, they will help with your taxes and also improve your efficacy in areas they have expertise.

Tax Audit Representation involves giving the tax expert power of attorney to speak for you in an IRS audit. Especially if you run a cash business or an enterprise that deals in valuable inventory like an upscale dining experience or a sizeable medical clinic, you may be subject to scrutiny from time to time.

Types of IRS Audits according to Tax Shark

  • Field audits. For these specifically, you first need to understand the distinction between IRS officers and fraudsters/scam artists. The IRS does not call, email, or text potential auditees. They will reach out via mail for the first contact. Only when they are interested in scheduling a visit will they call you.

Always ask for their pocket commission/badge number and personal identity verification credentials whenever you encounter the agents for the first-time during field interaction. Another way to distinguish fraudsters is they will not ask for money.

  • Office Audit. When conducting an office audit where you go to your local IRS center and chat with a revenue officer/agent, you should always bring pertinent papers to the appointment. You should have your records and statements supporting your claims along with your tax returns, W-2, and 1099 forms.
  • Mail audits. As the name suggests, these occur via mail. They are also called desk audits. The process includes answering automated underreport alerts and filing amended tax returns to correct discrepancies. Also, phoning crystallizes what the IRS exactly wants. Replace missing paperwork and file unfiled returns to get your account well regarded.

Benefits of Procuring Representation

There are several ways to use a tax representative to benefit you and your enterprise, from cost to time savings.

Better Understand the Extent of the Audit

You do not want to enter proceedings with the IRS without proper preparation of both you and your account. A qualified professional can critically analyze the case and convey what the process needs to be. Audit Tax Representation can present essential documents to aid in paying taxes with as few penalties as possible.

Save Time

Familiarity with the IRS process and experience in such proceedings enables a tax professional such as an agent to guide you through the proceedings as efficiently as possible. Especially if your case is complicated, it can be stressful, uncomfortable, and time-consuming to sort out independently. IRS tax representation is already familiar with the required documentation and procedure to follow to allow for speedy resolution without litigation taking up additional time.

Reduced Stress

Complicated cases such as an office audit cause insomnia, depression, and sometimes even hospitalization of taxpayers due to undue stress exerted from an intense audit process. Having qualified legal representation to represent you can allow you to go along with your daily duties with the weight off your shoulders. IRS interrogators often use intense and uncomfortable questioning techniques when looking into your lifestyle and finances. Having representation will take some of the pressure off you.

It will save you money.

Taxpayers are often paralyzed by the thought of an IRS audit. They try to put off the process for as long as possible. Stalling may lead to failure to deal with tax liability, making the situation worse as you may accrue additional fines and penalties.

Tax audit help knows that the best way to address such matters is doing it immediately. Tax representatives deal with the IRS often and are not intimidated by the process. They help you pull the trigger as soon as possible, saving as much money and time as possible.

Protect you from Manipulation and Getting Taken Advantage of

Most taxpayers do not know their rights or proper audit procedures and are thus vulnerable to manipulation and overreaching into unnecessary areas of life. Tax representatives know when the IRS agents may be taking advantage of you and will protect your interests in that case. When interrogators get too inquisitive, the representation can stop it and negotiate better tactics.

Agents can also help protect your business's valuables and income during the whole process. With a tax attorney at your side, you will not have to worry about agents taking advantage of you due to unfamiliarity with the system's intricacies.

Avoid Inaccuracies

An IRS audit garners different reactions from business owners. Most people react with anxiety and fear upon finding out the IRS is looking into auditing them, making any of their efforts much less likely to be accurate and thorough because they do not have a clear mind.

Streamlined cooperation coupled with providing accurate data is vital to your safety in the audit process. Especially when filing amended or new returns, invalid data can be detrimental to your case. A qualified tax representative knows all the sensitive areas to validate and how to avoid errors. Not only do you get peace of mind, but you also might avoid jail and legal proceedings.

Get Tax Representation

Honestly, if you engage a tax firm worth their salt, they will provide you with many other offerings. They should not only be pertinent to taxation but also streamline your business processes.

At Duran Business Group, we not only help with IRS tax representation, but we also provide other business-centric solutions such as:

  • Accounting
  • Business Services
  • Payroll
  • Human Capital Management
  • Tax Planning
  • Tax Strategies

When dealing with any state entity, you need to get the best representation with a mix of experience and qualifications. Our team has 15 years of experience in IRS enrollment and keeps up with the changing landscape of policies and regulations.

Not only will we save you from an audit, but our strategies will also help you retain as much revenue as you legally can. Contact us today for more information.