Taxaway

(617) 794-4084 / taxes@taxaway.com


Audit Assistance and Representation Services


Having professional representation for an audit can be expensive, but considering the possible tax consequences, it's worth it.

Audit Assistance

If a taxpayer is audited by the IRS or a state tax agency, I recommend that you engage audit representation (see next section). But if a taxpayer chooses to handle it on their own, I offer a consultation explaining the process: responding to the IRS/state notice, submitting necessary documents, timelines and steps involved, and your options after receiving the audit findings. This would be a one-time half-hour advisory meeting ($50 fee) before the process begins. Once the audit is underway, this type of assistance will not be provided because relevant responses and actions are specific to each case, and would imply an official client-representative relationship. The taxpayer would require audit representation for that situation.

Audit Representation

If a taxpayer is subject to an impending correspondence, office or field audit and wishes to be represented by an authorized practitioner, or the audit is ongoing and the taxpayer now wishes representation, as an enrolled agent I am federally licensed to represent taxpayers in the audit, appeals and collections process before the IRS/state. In addition to a client engagement letter, Client will need to sign a Power of Attorney form which authorizes me to receive copies of any written communication from the taxing authority, act and respond on Client's behalf, and represent Client at any examination meetings.

Correspondence audits are most common, but audits of more complex returns including business activities, are conducted as an office (visit to the IRS office) or a field (IRS agent visits the office/home/place of business) audit.

Audit Fees, billable in quarter-hour increments:
Filing the Power of Attorney form to authorize representation: $25,
Any incidental expenses incurred (ie, priority mail), and

current clients
correspondence audit: $60/hr, maximum $1,200
(applies to initial audit year; 1/2 maximum applies to each additional year if selected for examination)
office/field audit:$70/hr audit meeting time (in addition to time-fees noted above)

A successful audit defense not only involves time organizing documentation but may require researching court decisions and revenue rulings. Maximum fee does not apply to time required for appeals/audit reconsideration, if applicable and client chooses to challenge the audit report.

Please note: My tax preparation service includes resolving any notices concerning the preparation of the return, but situations in which the taxpayer has been selected for an audit is a separate issue to which these fees apply.



new clients
correspondence audit: $60/hr
office/field audit: $70/hr audit meeting time (in addition to $60/hr preparation time)

A $145 retainer fee will be required from new clients upon agreement of audit representation. A quote for a maximum fee for representation service (similar to current clients) may be made on a case-by-case basis.