Useful Information About IRS Audit Representation AZ

By Brenda Warner


The majority of taxpayers are not supposed to represent themselves in IRS audits. They will have CPAs or tax preparers to represent them. If the CPA is hired, they should not accompany them to the audit because there is always the temptation to answer unanswered questions. In business audits, there is somebody authorized by the business to represent their interests. When considering IRS audit representation AZ residents should know what to expect.

The purpose of hiring representatives is to shield clients from adverse adjustments coming from the IRS auditor. There are no clients that want to be probed in all the possible areas that the auditor can find. Auditors are not supposed to go to homes of clients to find certain details and neither should they ask incriminating questions. The good thing with representatives is that they know acceptable evidence and that which is not. It is advisable that one supplies enough evidence so that auditors do not check documents relating to other years.

Representatives should be in a position to bargain with auditors to accept certain documentation, and ensure they remove penalties in case the taxpayer agrees to sign the report. There are three main considerations when choosing the best representatives. These are trust, knowledge and experience. With trust, it means you will entrust them with all the relevant information and hope they will do their best. They should also have vast knowledge and experience in matters concerning taxes.

There are three main types of individuals who are licensed to offer representation before IRS when there is tax audit. The professionals have their pros and cons and should be chosen carefully. Tax attorneys should be able to be trusted with tax audit work. This is as long as other hiring requirements are met. On the downside, there are tax attorneys who will not consider client interests above theirs. They might not be accurate.

Enrolled agents are also able to represent people. They will need to be selected based on the set factors to ensure they have the needed qualifications. They will come with a disadvantage. There are those that will be given enrolled license without sitting their exams. This implies that there are professionals who will not be operating as educated professionals. It will definitely hurt the audit.

One may also consider the services of certified public accountants. They are the highest level of trusted professionals. They normally have the education, intelligence and professionalism. Besides, there is the conservative state board of accountants which regulates their services. There may be CPAs with the right knowledge but poor negotiation skills.

The tax payers advocate service is available to assist with cases in which an individual has a problem paying taxes. The program is free and is established independent of IRS. It will not prepare tax returns but is able to offer independent review of tax issues that are not resolved. It is good for filers experiencing economic challenges.

When an individual is getting audited, they must be informed of the same. In addition, if any financial details are requested, they need to be told how it will be used. That data must be discreetly kept.




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