IRS Audit Representation · Verified Directory
IRS Tax Audit Accountants — Representation You Can Trust
An IRS audit isn't a conversation you should have alone. With a Form 2848 Power of Attorney on file, a licensed CPA or EA handles every interaction with the examiner — and Appeals if the report comes back wrong.
What's included
What audit representation covers
Correspondence audits
Mail-only exams — typically EITC, Schedule A, or single-issue. Most close cleanly with a documented response.
Office audits
In-person at an IRS office. Your rep attends — you usually don't have to.
Field audits
Revenue Agent visits your business or rep's office. Highest stakes, longest timeline.
Appeals
When the exam report is wrong: an independent Appeals Officer reviews. ~60% of cases settle here.
Tax Court petitions
90 days from a Notice of Deficiency to petition Tax Court — no upfront payment required.
Post-audit collections
If you owe after the audit, your rep transitions you into installment, CNC, or OIC.
IRS notices handled
Decode the letter — and the deadline
| Notice | What it means | Next step |
|---|---|---|
CP14 Balance due — first notice | The IRS says you owe tax. Interest and the failure-to-pay penalty are already accruing. | Verify the balance against your return, then pay, request an installment agreement, or dispute within 60 days. |
CP2000 Underreporter — income mismatch | Third-party documents (1099s, W-2s, K-1s) don't match what you filed. Not an audit — yet. | Respond by the deadline with corrected figures or supporting docs. Ignoring it triggers a statutory notice of deficiency. |
CP504 Final notice of intent to levy state refund | Account is in collections. The IRS can levy state tax refunds and will pursue further collection action. | Open a collections case: installment agreement, currently not collectible, or offer in compromise. |
LT11 / Letter 1058 Final notice of intent to levy — 30 days | The IRS can levy wages, bank accounts, and seize assets after 30 days. Triggers your CDP hearing rights. | File Form 12153 within 30 days to request a Collection Due Process hearing and pause levy action. |
Letter 525 / 915 Examination report (audit results) | Audit findings proposing changes. You have 30 days to agree, disagree, or request Appeals. | Get representation before responding. Appeals is almost always preferable to Tax Court if you disagree. |
Notice CP90 / CP297 Notice of levy on federal payments | IRS will levy Social Security, federal contractor payments, or other federal benefits. | Same 30-day CDP window. A pro can negotiate a collection alternative and request levy release. |
Resolution paths
Back taxes, installment agreements, OIC, penalty abatement & more
Back taxes & unfiled returns
File the last 6 years of missing returns first — the IRS won't entertain any resolution until you're compliant.
- Pull wage & income transcripts to reconstruct missing data
- File substitute returns over IRS-prepared SFRs (almost always lowers the balance)
- Stop the failure-to-file penalty (5% per month, capped at 25%)
Installment agreements
Monthly payment plans for taxpayers who can't pay in full but can pay over time.
- Guaranteed (under $10K) and streamlined (under $50K) plans skip financial disclosure
- Partial-pay installment agreement (PPIA) for balances you can't fully pay before CSED
- Setup fee waived or reduced for low-income taxpayers
Offer in compromise (OIC)
Settle for less than owed when reasonable collection potential is below the balance.
- Doubt as to collectibility — the most common path
- Calculated as net realizable equity + future income (12–24 mo. multiplier)
- About 30–40% acceptance rate nationally; far higher with proper Form 433 preparation
Penalty abatement
Reduce or remove failure-to-file, failure-to-pay, and accuracy-related penalties.
- First-Time Abatement (FTA) — automatic if clean compliance history for prior 3 years
- Reasonable cause — illness, natural disaster, reliance on a preparer, records destroyed
- Statutory exceptions for erroneous IRS written advice (Form 843)
Audit representation
Power of attorney (Form 2848) puts a licensed pro between you and the IRS examiner.
- Correspondence, office, and field audits — including TCMP and EITC exams
- Appeals representation if you disagree with the examination report
- Tax Court petition prep when settlement isn't possible
Currently Not Collectible (CNC)
Temporary collection hold when paying anything would create financial hardship.
- Stops levies and garnishments while in status 53
- Requires Form 433-F or 433-A financial disclosure
- CSED clock keeps running — balance can expire while in CNC
Who you hire matters
CPA vs Enrolled Agent vs Tax Attorney
| Type | Scope of practice | Best for | Typical cost |
|---|---|---|---|
| CPA | Unlimited IRS representation. Strongest on tax planning, business returns, and complex accounting. | Business owners, multi-entity filers, anyone whose case crosses tax + accounting + financial statements. | $200–$450/hr; $2K–$10K typical resolution engagement |
| Enrolled Agent (EA) | Federally licensed by the IRS, unlimited representation rights. Tax-only focus. | Personal collections cases, installment agreements, OIC, audit representation when no litigation risk. | $150–$300/hr; $1.5K–$6K typical resolution engagement |
| Tax Attorney | Licensed lawyer with tax specialty. Attorney-client privilege. Required for Tax Court litigation. | Criminal exposure (eggshell audits), foreign accounts (FBAR), Tax Court cases, complex appeals. | $350–$700/hr; $7.5K–$25K+ for litigation matters |
When to hire tax resolution help
Signals you shouldn't go it alone
- You owe more than $10,000 in back taxes
- You received a CP504, LT11, or Letter 1058 (levy is imminent)
- You haven't filed returns for two or more years
- You're being audited — especially a field or office audit
- The IRS has already levied wages, a bank account, or filed a federal tax lien
- You're considering an Offer in Compromise and want it done right the first time
- You disagree with an examination report and need to file Appeals
- Payroll tax (941) liability — Trust Fund Recovery Penalty risk to officers personally
Documents to prepare
What to gather before your first call
- Every IRS notice or letter received (front and back)
- Last 3 years of filed tax returns
- Wage & income transcripts (we can pull these via POA)
- Bank statements — last 3 months
- Pay stubs or P&L for self-employed (last 3 months)
- List of monthly living expenses (Form 433 categories)
- Asset list — home, vehicles, retirement accounts, business equity
- Form 2848 Power of Attorney (we prepare this)
FAQ
Common questions
What triggers an IRS audit?
Common triggers: Schedule C losses for multiple years, high charitable deductions vs. income, large home-office or vehicle deductions, unreported 1099 income, cash-intensive businesses, and high DIF scores. Random audits also happen — about 0.4% of returns are examined annually.
How long does an IRS audit take?
Correspondence audits: 3–6 months. Office audits: 6–12 months. Field audits: 1–2 years. Appeals adds another 6–12 months. The audit window is usually 3 years from filing — extended to 6 years if 25%+ income is omitted.
Should I just talk to the auditor myself?
No. Every statement you make is in the file. A licensed representative limits scope, controls document flow, and can shut down expansion to other years or issues. Even simple cases benefit from a 1–2 hour POA engagement.
What if the audit finds I owe?
You have three choices: agree and pay (or set up a payment plan), disagree and request Appeals within 30 days, or wait for the Statutory Notice of Deficiency and petition Tax Court within 90 days. Don't ignore — that locks in the assessment.
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