September 26, 2015

39267587_s (1)When it comes to the most feared or stressful activities that any person might have to endure, an IRS audit may be high on the list. By filing an IRS Form 2848 – Power of Attorney, individuals are entitled to have a professional represent them during the examination. There are some individuals, however, who choose to represent themselves in a tax audit. The decision to represent yourself in a tax audit is one that you should make carefully, taking into account your particular situation.

It is important to remember that IRS agents and auditors represent the government and not you. They are trained investigators, and their primary job is to identify errors on your tax return. If they sense that you do not understand the rules or are ignorant of your rights, then they may take advantage of the situation. They could attempt to extract more information than you are legally obliged to provide or they may try to secure damaging admissions on your end. In this way, they can declare penalties and recommend significant audit changes.

Should you decide to represent yourself in an audit, you must believe in your ability to handle all phases of the audit—from researching the tax code and regulations to dealing with the bureaucratic and legal complexities that may arise. You should have an understanding of the procedures pertaining to IRS audits and appeals. While you may feel that not having to pay for representation will save you some money, the reality is that you may wind up receiving a hefty bill for a significant tax deficiency in the end.

Working with a tax attorney or other tax professional means working with someone with a deep knowledge of both tax law and the audit process, and who can anticipate what happens next. A IRS audit tax attorney is also aware of where the IRS often looks for vulnerabilities, and is able to implement effective strategies for defending your case. More importantly, a tax professional keeps all emotions off the table, evaluating your case and defending your economic well being from a more objective point of view.

In many ways, representing yourself in an audit is similar to representing yourself in court. If you would hire a lawyer in the courtroom, then it is likely that you should hire a tax professional for an audit. The IRS agent represents the IRS – and it would be most beneficial to have someone on your side to ensure that you are not taken advantage of.


Categories: Blog, IRS, Uncategorized