A taxpayer may have done everything possible to avoid getting audited, but once you’ve been selected by the IRS there is only one thing you can do—hire a certified public accountant for representation, according to Alex Zorab. Zorab is a CPA, as well as a partner at First American Tax Services in Chicago, who has represented countless clients in their cases with the IRS.
The first thing that anyone needs to do when they receive a notice that they are being audited by the IRS is to call an office like my own, First American Tax Services. Hiring a CPA who specializes in protecting clients from audits, which we do here, is really your only way of getting through this type of situation.
Although some people choose to hire lawyers to represent them when they get audited by the IRS, I don’t generally think that is a good idea. Although lawyers and tax advocates might be specialized in negotiations, only CPAs will be completely aware of all the latest nuances and changes in the IRS tax codes that could get you out of trouble. So not only can a CPA represent you during an audit, but hopefully he should be able to help you gather and recreate any records that you are going to need during your case, as well. Having all the right records in place and ready to go certainly gives the taxpayer an advantage during an audit situation.
Here at First American Tax Services, when a client comes to us saying he is being audited by the IRS, the first thing we will do is help the client recreate everything he will need under the circumstances. So we will tell our clients what documents and receipts they need to gather, and then work together to get back any documents that may have gotten lost in the shuffle over the years. Working with a CPA who has experience in these issues will be your best way to stay prepared and ensure that you have favorable results from your audit.
The next thing that I tell clients is to never go directly to the IRS. Instead, have a CPA who you trust to go to the IRS for you. CPAs know how to talk to the IRS representatives and they know what kinds of documents are going to be needed under the circumstances. And just like in a legal case, CPAs know what kinds of straightforward answers need to be given in order to get the situation resolved.
A regular person who tries defending himself in an audit with the IRS could potentially get himself into a much worse situation by accidentally saying the wrong thing. Because a simple misstated answer, which a person could easily give under duress or because of confusion about the question, could trigger even more trouble. When I talk about giving the right answer to the IRS, I am not talking about honesty. What I am talking about is having someone who knows the direct way to answer each question on your side. Phrasing answers in a direct, straightforward way that IRS officials will understand is going to be the best way to help your case and ensure that you get out of the audit as quickly and smoothly as possible without causing even more damage than you had in the beginning.
Overall, it is important that taxpayers know that they should call a CPA as soon as possible after they receive notice from the IRS that they have been selected for an audit. The more quickly you move, the better. Because the sooner you have a CPA working on your case, the more time you will both have to gather the correct documentation that will be necessary to defend yourself against the IRS.
