Criminal fraud cases should be handled by an attorney as needed.
Representation by Enrolled Agent
Tax audit representation fees are hourly based and subject to a $1,500 prepaid, nonrefundable, Minimum Fee Retainer PER INCOME TAX YEAR UNDER AUDIT and do not include any subsequent Appeals or Tax Court Hearings or related filings.
Tax Audits are increasingly being conducted by correspondence. Sometimes they are conducted at the IRS office locally or held in my office if the return involves a business.
As a former IRS Revenue Agent I have conducted examinations of taxpayers at their homes and if they were in business at their business location or that of their tax representative. Occasionally, they were conducted by me at my IRS office. During my 17 years of examination experience, I audited hundreds of individuals and businesses that were engaged in a wide variety of professions and trades. I selected the tax return for examination after careful analysis of the issues revealed on the tax return, contacted the taxpayer and went out to their home place of business to examine their books and records. I issued summonses and assessed taxes. These audits could take from 6 months to a year and were usually dependent upon the taxpayer's cooperation, substantiation and correct use of the tax laws.
Some typical reasons for an audit.................................................................
Under reporting of income.
On going hobby losses versus business losses.
Overstatement of expenses.
Tax avoidance schemes.
Fraudulent non filing.
Not filing when required to file.
Lifestyle inconsistent with reported income.
Losses taken from flow through entities without basis.
It makes no sense to attempt to represent yourself in an audit. For one, you don't know what the auditor has identified as a "red flag" on your tax return or if the IRS isn't revealing all they know about your case. It is my recommendation that all taxpayers under examination seek the advice of an experienced, well trained and knowledgeable Enrolled Agent. It will be well worth your investment.
Note: If you undertake the audit yourself or my office did not prepare your original tax return,
and you are turning it over to me for Reconsideration (a Re-do by a different Audit Group) or Appeals, the Minimum Fee Retainer will be $2,800 PER TAX YEAR UNDER AUDIT.
If the Audit scope or complexity increase and more time is needed to be devoted than is covered by the above Retainer, you will be asked to provide additional funds.