Tax Audit Representation: Find IRS Assistance

If the Internal Revenue Service (IRS) chooses to audit your tax return, it doesn’t automatically mean you’ve done something wrong. However, it can still be a daunting process to take on alone.

If you’ve been notified of an audit, it could be worth seeking IRS audit representation, so you’ll have someone in your corner who is well-versed in the process and can help you assert your rights. Here are our top choices to consider and what to expect when working with each.

4 companies that offer IRS audit representation

You can get help with IRS audit representation from a variety of sources, including accountants, tax firms and tax law groups. If you had a CPA prepare your return, you could start by asking them about representation. 

However, you may also want to shop around and compare other alternatives to ensure you get the best experience and results possible. Here are four firms to consider.

Anthem Tax Services

Precision Tax Relief

What is tax audit representation?

Tax audit representation is a form of defense for taxpayers facing an audit with the help of tax professionals, tax attorneys, or tax relief companies.

Once hired, the professional becomes the taxpayer’s authorized audit representative. They can help communicate with the IRS, accompany the taxpayer to meetings, or stand in for the taxpayer.

What does an IRS tax representative do?

An IRS tax representative is there to help with all aspects of the audit. First, they’ll assess the situation and review your tax returns. Then they’ll develop a strategy for defending you.

They also may:

• Attend any in-person audit meetings with the IRS
• Accompany you to IRS interviews
• Prepare documents requested during the audit
• Handle communications with the IRS agent
• Appeal the results of your audit if you disagree with their findings

The primary benefit of tax audit representation is guidance from an experienced professional. A tax representative can help you better understand the auditing process, ensure you’re prepared, and help you minimize any damage that might come from it.

How much does tax audit help cost?

The cost of IRS audit representation will vary depending on the firm you work with, your unique situation and the complexity of your audit. While some firms charge a flat fee, others may charge by the hour.

Unfortunately, many tax relief firms don’t provide much detail about their costs on their websites, so it’s difficult to get a good comparison without going through multiple consultations. 

Another cost you’ll want to prepare for is the potential additional taxes, interest and penalties you may have to pay if the IRS finds that you owe back taxes. Here’s a quick summary of what to expect:

Cost	Typical Range
Hourly rate	$200 – $400
Flat fee	$1,000 – $5,000+
Unpaid taxes and interest	Determined by the IRS
Failure to pay penalty	0.5% of the unpaid taxes for each month or part of a month the taxes remain unpaid
Interest	8% compounded daily

Note that if the IRS finds that you owe money, the tax relief firm that provided audit representation may also be able to help you negotiate a settlement and help you avoid wage garnishments and bank account levies. 

That said, results aren’t guaranteed, so make sure the firm you’re working with has a money-back guarantee if you aren’t satisfied with the service. 

How to decide if you need IRS audit help

The three types of audits are mail, office, and field audits. Mail audits are the simplest type. The IRS will mail you a letter and request additional documentation to verify your returns. Unless the document requests are complicated, you are unlikely to need representation for this type of audit.

Office and field audits are in-person. With an office audit, you’ll go to a local IRS field office, whereas field audits are conducted at your home or business. In both cases, an IRS agent will question you, and you might want a representative to help you through it. 

Here are situations where it may make sense to consider representation and when you can reasonably do without:

When to consider representation	When to think twice about representation
You’re facing an office or field audit	It’s a simple mail audit
You don’t have certain requested documents	Your tax situation is generally straightforward
You’re overwhelmed with the process	You have all the requested documents
Your tax situation is complex

Ultimately, hiring IRS audit representation is up to you. Even if it’s a simple mail audit, you can still obtain representation if you’re feeling overwhelmed. Just be sure to consider the potential costs to determine if it’s worth it for you.

If you’re not sure whether audit representation is right for you, consider a free consultation with one or more tax relief firms to get some personalized advice.

FAQ

Who can represent me in a tax audit?

In a tax audit, you can be represented by a licensed professional such as a Certified Public Accountant (CPA), an Enrolled Agent (EA), or a tax attorney. These professionals are authorized to represent taxpayers before the IRS and can provide expertise and guidance throughout the audit process.

What are the common outcomes of a tax audit?

The common outcomes of a tax audit include:

1. No Change: The IRS agrees with your tax return, and no adjustments are made.

2. Agreed: The IRS proposes changes, and you agree to the adjustments, resulting in additional taxes owed or a refund.

3. Disagreed: You do not agree with the proposed changes, leading to further negotiation, appeals, or litigation.

How long does a tax audit take?

The duration of a tax audit can vary significantly based on the complexity of the issues, the availability of documentation, and the type of audit (correspondence, office, or field audit). Typically, an audit can take from a few months to over a year to complete.

Can I handle a tax audit myself without representation?

Yes, you can handle a tax audit yourself without representation. However, it is often beneficial to seek professional help from a CPA, EA, or tax attorney, especially if the audit involves complex issues or substantial amounts of money. Professional representation can help ensure your rights are protected and the process is managed effectively.

What documents do I need for a tax audit?

For a tax audit, you may need to provide various documents, including but not limited to:

• Tax returns and supporting schedules
• Receipts and invoices
• Bank statements
• Payroll records
• Business expense records
• Investment records
• Any other documents that support the income, deductions, and credits reported on your tax return

What happens if I disagree with the audit findings?

If you disagree with the audit findings, you have the right to appeal the decision. You can request a meeting with an IRS manager, file a formal appeal with the IRS Office of Appeals, or pursue your case in Tax Court. It is advisable to seek professional representation to help navigate the appeals process and present your case effectively.

How we selected the best tax representation companies

LendEDU evaluates tax relief companies to help readers find the best tax relief services. Our latest analysis reviewed 400 data points from 20 companies, with 20 data points collected from each. This information is gathered from company websites, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best IRS assistance companies