The Need For Tax Audit Representation

An individual or organization’s accounts and financial information can be audited by the IRS to make sure not only that the information they have submitted are in accordance with tax laws but also to verify if the correct amount of taxes has been filed.

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Those who undergo tax audit are typically randomly selected using a statistical formula. The selected taxpayer has its returns compared to “norms” developed based on random sample of similar returns and through a computer. Those whose returns vary significantly from the norm are more likely to be audited.

The IRS may also audit other businesses or investors who have had issues or transactions with the selected returns.

The IRS will initially contact the auditee by mail (never by telephone), and will subsequently manage the auditing process by mail or through a face-to-face interview at an IRS office, the taxpayer’s home or business location, or in an accountant’s office.

One of the rights provided by the IRS to the taxpayers is the right to representation, by oneself or an authorized representative.

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The latter is the better alternative as tax laws are subject to interpretation, which means there is no such thing as a perfectly accurate tax return. IRS auditors could also attempt to expand the scope of the audit. Coordinating with seasoned tax representation firms or professionals can help taxpayers handle tax audits in the best way possible.

One of the leading tax representation and resolution firms in the industry, Tax Tiger has expertise in representing clients who are facing IRS and State audits. Click here to know more about the company’s services.