Did you know that over 50% of the referrals that the Criminal Investigation Division (CID) get are from the Revenue Agent you are about to sit across the table from?!

At TRS, we approach every audit engagement as if we (the client) were walking on “egg shells”. That’s because the IRS asks about 54 very innocent sounding interview questions at the initial meeting. How they are answered dictates your fate for the rest of the Exam. For instance answering them truthfully AND not raising any red flags is the trick. Most people (without proper and expert representation) either are not truthful in their responses and the ones that are “talk too much” and tend to incriminate themselves and give out too much information. If this happens, you are in BIG trouble.

Going to an audit on your own, without professional expert representation on your side, is like a boxer going into a fight without boxing gloves. You are way out of your “league” if you think this is a smart idea. The IRS selects returns for audit that have the greatest potential for additional tax to be collected. At TRS, our goal is to obtain “No Change” letter (if appropriate) or make certain, that if there is additional tax to be assessed, that is the lowest amount under law. If you are audited you need HELP! PERIOD!

The IRS can audit you by mail, in their offices, or in your office or home. The location of your audit is a good indication of the severity of the audit.

Correspondence Audits
• Typically, correspondence audits are for missing documents in your tax return that IRS computers have attempted to find. These usually include W-2's and 1099 income items or interest expense items.
• IRS Tax Audits are usually handled through the mail with the correct documentation.

Office Audits
• The IRS office audits are usually with a Tax Examiner who will request numerous documents and explanations of various deductions.
• This type of audit may also require you to produce all bank records for a period of time so that the IRS can check for unreported income.
• Revenue Agents receive more training and auditing techniques than a typical Tax Examiner to conduct an IRS tax audit.

All IRS audits should be taken seriously because they often lead to other tax years and other tax deductions not originally stated in the audit letter.

Are you being audited?

…by the Internal Revenue Service, Franchise Tax Board, State Board of Equalization, Employment Development Department or other State Department of Taxation?

If you choose to go it alone and handle the IRS Audit yourself, you will get “creamed”- It’s like going to court without a lawyer and worse yet, the fear that your case may be referred to criminal investigations for criminal prosecution should be reason enough alone to seek help.

Pause…..take a deep breath

Just because a taxing authority has decided to audit you, does not mean you have to roll over or die or be pushed around. Every taxpayer has the fundamental rights of due process, fairness and representation- even if the auditor ‘forgets’ to explain this to you. WE KNOW YOUR RIGHTS INSIDE AND OUT. WE KNOW HOW TO PRESERVE THOSE RIGHTS AND “WORK” THOSE RIGHTS TO YOUR ADVANTAGE.

Protect your rights!

Be firm with any tax auditor regarding your rights and behave in a professional and courteous manner.

What are the risks of not having expert representation?
• Due to budget cutbacks, many government auditors may not have the time necessary to perform a comprehensive review of all appropriate documents
• The auditors function is to ensure compliance with the law…
• However, assessments made as a result of the audit help to fund the deficit- due to this inherent conflict in the auditor’s role, it is difficult for the auditor to be objective and ensure the taxpayers rights are fully protected
• It is relatively common for an auditor to ask the taxpayer for information and not explain how the information will be used, or worse yet, not explain what will happen if the taxpayer cannot provide the information
• In either case, this can lead to an erroneous conclusion on the part of the auditor and result in an incorrect assessment
• …or even fraud penalties

Ultimately, this can cost the taxpayer thousands of dollars

Remember, in addition to any ‘findings’ by the auditor of unpaid taxes, you will also be assessed interest and penalties.

Would you go into a court room without a lawyer?

Do not take chances…..hire an expert who will vigorously and objectively defend your rights

TRS is highly skilled at audit representation

Our breadth of audit experience provide our clients with a wealth of insights on how best to handle their audit and limit their exposure.

• Collectively, we have over 100 years of experience in IRS Tax Audits
• We have managed audits spanning the spectrum- from individual taxpayers to Fortune 50 companies
• We will guide you thru the process- and explain step by step what is needed and why

Read our blog articles about Tax Audits:
2007 Audits, Enforcement Revenue Up for IRS
Don't Panic When You Get an IRS Audit Letter in the Mail. Get Help from the Tax Experts!
Tax Audit Problem FAQ: How Do I Know When I Need Professional Tax Help?

In most cases, you will not have to meet with an auditor.

Have questions? Need Advice? We can help.
Contact us today.