Facing an IRS audit alone without IRS audit representation is not a good idea.
The IRS can audit you for any year and determine that you owe additionally to what you had originally paid in. It is generally a good idea to have IRS audit representation so you don’t have to face the IRS audit alone. Many times, taxpayers that decide to handle an IRS audit themselves find it to be an extremely difficult task with mixed results. Sometimes though, it may be the best option. It depends on the individual circumstances of each case. However, having competent IRS audit representation can turn what would be an intensely terrifying and highly frightening experience into something that you don’t have to deal with.
If you become the target of an audit by the IRS, you need to make sure you’re prepared. You’re swimming with sharks at that point and every single oral statement and written communication/documentation can later be held against you. That’s why it is a good idea to seek IRS audit representation. If you decide that hiring an Enrolled Agent as your IRS audit representation would be in your best interest, the Enrolled Agent assigned to your case will go through all of your audit documentation; represent you before the IRS; and make sure you get the most favorable result possible. After the audit results are reviewed, if it is determined that you have an additional tax amount due, your Enrolled Agent will handle the rest of your case, in an attempt to negotiate a reduction of your tax bill, if applicable.
Should I have tax representation regarding other matters before the IRS?
In addition to needing IRS audit representation if you get an audit letter, there also may be a need for tax representation regarding disputes with the IRS which include tax notices or the appeal of positions taken by the government. If there is a dollar amount attached to any correspondence you receive from the IRS, then it would be a good idea to seek tax representation as part of an overall tax resolution strategy.
An important part of tax representation also involves ensuring that the IRS and other state taxing authorities are following the rules and proper procedures during a dispute with one of our Clients. You can find comfort in knowing that if your taxpayer rights are violated, the experts on the MIS Tax Pros team will protect them. Our Enrolled Agent group constantly reviews tax issues while assisting our Clients through the process and takes the most appropriate action for each unique situation. You may receive letters from the IRS requesting information and these matters may require our representation to address them adequately, as well.
We will also represent you before any state tax authorities, if necessary.
What has to be done to get proper tax representation before the IRS?
Before we are able to represent a taxpayer, a Power of Attorney known as Form 2848 has to be sent to the IRS. This is a Power of Attorney for tax matters dealing with the IRS only, and will name one of the Enrolled Agents at MIS Tax Pros as your Representative. It allows us to handle the problems with minimal involvement, if any, from you in the matter. The Power of Attorney is in effect only for the tax years and/or periods that we list on the form. When we send Form 2848, along with a Letter of Representation to the IRS, they will start communicating with us about your tax matters for those periods/years. As soon as we become your representative, we also become your shield. The IRS will have to go through us and cannot go around us because their rules require them to communicate directly with your representative regarding tax matters before the IRS. You will still receive written correspondence from the IRS but they should not be calling you regarding the matter with which we will be representing you.
After you receive a tax bill, it becomes a resolution matter in which we try to bring tax relief to our Clients. Tax resolution should be handled by an experienced Enrolled Agent that knows what to do. It can really take the heat off of you.
Whenever the IRS sends a letter indicating that there are amounts owed, timeliness is of the essence, as interest and penalties tend to skyrocket over time. Continually ignoring the matter will cause your tax bill to explode.
