1. IRS (or Tax Authority) Communication and Negotiation
Audit representatives communicate directly with the IRS or other tax authorities on behalf of their clients, managing all correspondence and negotiations. This includes responding to requests for documentation, clarifying tax return issues, and addressing any audit findings.
2. Audit Defense Preparation
Audit representation services include gathering, organizing, and preparing necessary documentation to support a client’s tax return during an audit. Representatives ensure that all required records are provided and presented in a way that complies with tax authority standards.
3. Tax Liability Reduction
Professionals offering audit representation work to minimize any potential tax liabilities or penalties. They identify deductions, credits, or exemptions that may have been overlooked, helping to reduce the financial impact of the audit.
4. Audit Appeal Assistance
If a taxpayer disagrees with the outcome of an audit, audit representatives assist with filing an appeal. They prepare the case for further review by higher authorities within the tax agency, aiming to achieve a more favorable outcome.
5. Settlement and Payment Negotiation
For clients facing significant tax debt or penalties, audit representation services include negotiating payment plans or settlement agreements. This could involve installment agreements, offers in compromise, or other resolutions to settle tax disputes efficiently.