So you're getting audited. You're not alone. According to USA Today, roughly 2 in every 1,000 tax returns of middle-income Americans was flagged for audit in the last fiscal year (2022). Hiring representation is a smart next step.
When choosing tax audit representation, there are several important factors to consider to ensure that you have the right professional handling your case. Here are some key considerations:
- Experience and Expertise:
Look for representatives with experience in tax audits and a solid understanding of tax laws and regulations. Consider specialists who have dealt with cases similar to yours or have expertise in the specific area being audited.
- Credentials and Qualifications:
Verify the credentials and qualifications of the representative. A certified public accountant (CPA), tax attorney, or enrolled agent are common qualifications.
Research the representative's reputation by checking reviews, testimonials, or asking for referrals from trusted sources. Consider the reputation of the firm or individual in handling tax audit cases.
Effective communication is crucial. Choose a representative who can explain complex tax issues in a clear and understandable manner. Ensure they are responsive and can keep you informed about the progress of your case.
Understand the representative's fee structure upfront. Some may charge hourly rates, while others may have a flat fee. Clarify whether there are additional charges for specific services or if the fee covers the entire representation process.
- Availability and Accessibility:
Confirm the representative's availability during the audit process. You want someone who can dedicate time to your case. Consider whether the representative is easily accessible for meetings, calls, or emails.
If possible, choose a representative familiar with local tax laws and audit procedures, as they can provide insights specific to your jurisdiction.
Inquire about the representative's track record in successfully resolving tax audit cases. This can give you confidence in their ability to handle your situation.
Choose a representative who adheres to high ethical standards. This is important for maintaining your credibility during the audit process.
Ensure that there is good chemistry and compatibility between you and the representative. A positive working relationship can contribute to a smoother process.
Though an audit is never a fun process, hiring the right representation can make a big difference in your experience going through an audit. By carefully considering these factors, you can make an informed and thoughtful decision in who you choose to be your tax audit representation and increase the likelihood of a successful outcome. If you're looking for representation right now, please see our about us page to learn more about why we're proud of our track record and the services we offer. You can also schedule a free consultation with one of our tax professionals.
