When you are undergoing an IRS tax audit, it is possible for you to defend yourself in a number of ways. In fact, you have the right to defend yourself and should take advantage of that right by contacting a CPA or Enrolled Agent, who can assist you. You can also keep the following FAQ in mind for audit defense.
Q: Can I deduct the audit defense fee?
A: For those that do not own a business, it may be possible to claim the audit defense fee as a deductible under your personal miscellaneous, itemized deductions. It is important to understand, this type of deduction may be limited. Any portion of the fee which is for a business audit can be deducted as a business expense.
Q: I am already being audited, can you still help me?
A: It doesn't matter if you have already started the auditing process, you can still contact us for assistance. It is going to be necessary for you to provide us with information, such as tax returns and notices from the IRS so that we can evaluate your situation.
Q: Is it better for me to contact a tax attorney?
A: No, it is not necessary for you to use a tax attorney if you are being audited. We have successfully handled the audits for many of our clients and can talk to the IRS in your behalf.
Q: I already have an accountant, can you help me?
A: It is unlikely that your accountant handles tax audits regularly. If you have somebody that is responsible for your financial well-being, we can work along with the information that they provide.
Q: I am being harassed by the IRS, can you stop the calls?
A: After reviewing the notices that you receive from the IRS, we will be in a better position to answer this question. We can represent you throughout the audit process and you can tell the IRS that you are being represented by our services and that they should contact us directly.
Q: How much you charge for your services?
A: In order for us to answer that question properly, it is going to be necessary for us to have your information. This will include any notices that you have received from the IRS. We will provide you with a detail of all the charges associated with your audit in advance.
Q: Can you help with my old tax problems?
A: In many cases, we are able to assist you with tax problems that you may have from the past. We will need to get information from you so that we can discuss the specifics of your case and to see how much help we can provide, depending on your situation.