Tax Audit Services

• The truth about audit support and IRS letters revealed….

One day you go to the mailbox, and there it is. Among the letters, junk mail, and bills (yuck) is a letter with the return addressed "Internal Revenue Service" (double yuck). Dread and fear grasp you. Your throat tightens, your blood races and that feeling of impending doom descends. As you know, it is not likely a letter from them thanking you for paying your fair share of taxes. The IRS does not do that; no, it is something wrong. You open the letter and need to figure out what they want or what is wrong. You read the letter, yet it is as if it is in a foreign language, but it is clear that they want more money (and usually a lot more) or that you are being audited.

• What do you do? 

You could handle it yourself. Suppose it is a letter wanting more money. In that case, it is usually because:

All this is according to the IRS. However, their letters are not written for regular folks to read. They use language that only a professional can interpret. You may call the phone number on the letter (be prepared to wait a long time to get assistance). When you get an agent (who is probably on the other side of the country), they may or may not be able to properly advise you (do you think they are on your side and care at all about you and about being fair?). 

Did you know that according to IRS regulations (their rules of conduct), you cannot use the advice from an IRS agent as a defense? So, what! They admit that you cannot rely on their advice over the phone. You feel better already, don't you?

What if it is an IRS audit? Do you want to handle this yourself? 

Go down to the IRS office, through their security, and eventually meet face-to-face with an agent. He flashes the badge; this is the real deal. He begins with an interview, asking many questions. When you answer, you best remember that old adage, "what you say here can and will be held against you." It is scary. (Suppose you need to go to the bathroom; you actually have to be escorted.) Wow! This is serious business! 

The auditor asks for your documents of proof. No big deal: you brought your papers and showed them to him. What does he mean, "It is not the right proof"? Don't you know the thousands of IRS regulations? 

YOU CHOOSE TO REPRESENT YOURSELF AND ARE EXPECTED TO KNOW ALL THE RULES!

What's more, did you not know that not all IRS auditors have much experience?(Right now, the IRS is dramatically increasing the number of auditors, collectors, and staff persons, so they are hiring people off the streets. But, unfortunately, the IRS is giving these employees only quick training and then throwing them into the line of fire – instead, putting you in their line of fire). So how would you know if they even know what they are doing? 

Get this straight: the IRS is in the business of taxing you and collecting it. They may attempt to be fair, but do you really believe they are on your side? It is your responsibility if you choose to represent yourself.

Under the law, the only persons that can represent you legally are: 

● You● An Attorney● A CPA● An Enrolled Agent (a person that the IRS has accredited) ● Or in the case of an audit, the person who prepared your returns

What if you had your taxes prepared with one of those tax preparation software programs?

They say they will give you audit support. Do you think they will send an attorney, a CPA, or an enrolled agent based on that small fee you paid? Read the fine print; it says, "audit support," which means they will help you represent yourself.

What if you had your return prepared by an ordinary tax preparer? 

If they are not an attorney, a CPA, or an enrolled agent, then all they can do is assist you in representing yourself.

What if you had your return prepared by one of those tax franchises? Don't they claim that they will give you audit support?

Again, this means that they will assist you in representing yourself. However, they are not legally able to represent you. In addition, they may not even be open year around. 

THOSE ALL HAVE NO AUTHORITY TO REPRESENT YOU BEFORE THE IRS.

Your best bet is a seasoned CPA/Enrolled Agent/attorney/tax preparer. They are licensed, legally qualified, and open year round. Our firm, SHE Accounting Solutions has decades of experience with the IRS. We know their language, numerous rules, and what an IRS agent can allow; we know when they are doing their job right and when they are not.

Almost none of the issues that come up with the IRS concerning preparing your tax return are due to tax preparer error. However, suppose we do make an error. In that case, we will correct the issue and bear the responsibility for any penalties or actions that must be taken with the IRS. That is a guarantee.

However, if something comes up with the IRS, that is not our fault, or if you get chosen for a dreaded audit, you will be charged for our representation. Many have mistakenly believed that part of the charge for preparing your tax return already included an IRS representation for free. That has never been true. If it had been, your return would have cost more than it has.

Nevertheless, we are concerned because IRS activity has increased sharply in the last couple of years. The IRS has pleaded with Congress to increase audits, and Congress has responded by sharply increasing its budget for these. Congress wants to bring in more money, and one way to get more money is to increase audits. 

Beginning this year, when your return is prepared, we will determine which "Worry-Free Audit protection" program you qualify for. This fee will be automatically added to your invoice. Therefore, you may agree to the protection when you receive your tax return by simply paying the invoice. On the other hand, you may "Opt Out" of the protection, and the "Worry-Free Audit Protection" will be removed from the invoice. Alternatively, you may choose to upgrade this protection for other years.