What is an IRS Audit
What is an IRS Audit?
Facing an IRS tax audit? Protect your finances, assets, and legal rights with direct representation from licensed South Florida CPAs and tax controversy experts.
What is an IRS Audit and How Does It Work?
At its core, what is an IRS audit? An IRS audit is a formal review of an individual or business account and financial documentation to verify that tax returns were reported accurately according to federal tax laws. While receiving an audit notice can be stressful, having experienced CPA representation ensures your rights are fully protected throughout the examination process.
Types of IRS Tax Audits
Correspondence Audit
The most common type of examination, conducted entirely by mail. The IRS requests additional documentation or receipts for specific deductions, tax credits, or reported income figures.
Office Audit
An in-person examination conducted at a local IRS office where an auditor thoroughly reviews your tax records, receipts, bank statements, and supporting financial books.
Field Audit
A comprehensive audit where an IRS revenue agent visits your home or place of business directly to inspect accounting records, assets, and business operations.
How Total Tax Solutions Helps With What is an IRS Audit
Navigating an IRS audit alone can lead to improper tax assessments, aggressive agent questioning, and severe financial penalties. Learn more about our full range of South Florida CPA tax services or contact our team for direct audit representation:
- Power of Attorney (IRS Form 2848): We step directly between you and the IRS to manage all verbal communications, audit interviews, and formal document submissions.
- Document & Receipt Organization: We review and reconstruct your tax records according to official IRS audit guidelines to properly substantiate business expenses.
- Audit Defense & Appeals: If an IRS auditor proposes additional taxes, we negotiate adjustments or file formal appeals against unreasonable determinations.
- Penalty Relief & Abatement: We file requests for penalty relief based on reasonable cause to minimize or eliminate added financial liabilities.
What Are the Outcomes of an IRS Audit?
1. No Change
You substantiate all audited items, and the tax return is accepted as originally filed with no additional tax, interest, or penalties owed.
2. Agreed Adjustment
The IRS proposes changes, and you agree with the findings. We then help structure an affordable payment plan or settlement strategy for the balance.
3. Disagreed / Appeals
You disagree with the proposed tax increase. We file a formal appeal or petition to dispute the audit findings before final billing occurs.
Frequently Asked Questions About What is an IRS Audit
How far back can the IRS go for what is an IRS audit?
Generally, the IRS can audit returns filed within the last three years. However, if substantial errors or unfiled tax returns exist, the statute of limitations extends to six years or indefinitely in cases of unfiled returns or suspected tax fraud.
How long does an IRS audit take to complete?
Simple mail audits can be resolved in a few months, while complex field audits can take anywhere from 6 months to over a year. Working with a professional CPA accelerates the timeline by delivering properly structured audit response packages.
Do I have to meet with the IRS auditor in person?
No. When you hire Total Tax Solutions as your legal representative via Form 2848 (Power of Attorney), our licensed CPAs handle all auditor meetings, calls, and correspondence on your behalf.
Why Work With a Local South Florida CPA for IRS Audits?
National audit relief call centers often transfer your case between junior representatives. At Total Tax Solutions, you work directly with experienced CPAs based in South Florida who have established working relationships with local IRS field offices and revenue agents.
Get Professional IRS Audit Representation
Protect your assets and resolve your audit with confidence.
Schedule Your Audit Strategy Session
Or call us directly: (954) 946-4142
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