PTIN No P00670478
FAQ
For your convenience, our most common questions are answered below. If you don’t find what you’re looking for, call us at +1 888 300 6670 or reach out through our Contact Us page. We’re available 7 days a week.
About IRS Audits
Q: What does it mean to be audited by the IRS?
An IRS audit is a formal review of your tax return to verify that your reported income, deductions, and credits are accurate. The IRS may request supporting documents by mail, ask you to visit a local IRS office, or send an agent to your home or business. Being audited does not automatically mean you did something wrong — the IRS audits millions of returns every year.
Q: How does the IRS notify you of an audit?
The IRS only notifies taxpayers of an audit by postal mail — never by phone call or email. An official audit notice will include IRS letterhead, a specific notice number (such as CP2000 or Letter 2205), the tax year under review, and a response deadline. Any phone call claiming to be from the IRS about an audit should be treated as a scam and reported to the IRS.
Q: What are the most common triggers for an IRS audit?
Common IRS audit triggers include large deductions relative to income, unreported income, home office deductions, excessive charitable donation claims, business losses reported for multiple years in a row, cash-intensive businesses, and mismatches between your return and third-party income documents such as W-2s and 1099s. High-income earners also face statistically higher audit rates than average filers.
Q: What are the three types of IRS audits?
The three main types of IRS audits are: (1) a Correspondence Audit, conducted entirely by mail and the most common type; (2) an Office Audit, where you meet with an IRS examiner at a local IRS office; and (3) a Field Audit, where an IRS agent visits your home or business. Field audits are the most comprehensive and pose the greatest risk without professional representation.
Q: How long does an IRS audit take?
The length of an IRS audit depends on its complexity. A correspondence audit resolved by mail typically closes within 3–6 months. An office or field audit can take 6–12 months or longer if documentation is incomplete, if the case involves multiple years, or if you appeal the findings. Professional representation generally shortens the process by ensuring documents are submitted correctly and deadlines are met.
Q: Can the IRS audit a tax return from several years ago?
Yes. Generally, the IRS has three years from the date a return was filed to initiate an audit. However, if the IRS believes you underreported income by 25% or more, the statute of limitations extends to six years. There is no time limit if the IRS suspects tax fraud or if a return was never filed. If you receive a notice for a prior-year return, contact a tax professional immediately.
Your Rights & Representation
Q: Do I need a professional to represent me in an IRS audit?
You are not legally required to hire a representative, but it is strongly recommended. An IRS audit attorney, CPA, or Enrolled Agent can communicate directly with the IRS on your behalf, protect your taxpayer rights, gather the correct documents, and negotiate outcomes. Taxpayers who handle audits without professional help are significantly more likely to face higher penalties, miss deadlines, and make statements that worsen their case.
Q: What is the difference between a tax attorney, CPA, and Enrolled Agent?
A tax attorney is a licensed lawyer specializing in tax law who can represent you in court and handle criminal tax matters. A CPA (Certified Public Accountant) is a licensed accounting professional who can represent you before the IRS. An Enrolled Agent is a federally licensed tax specialist authorized to represent taxpayers at all IRS levels. All three can represent you in an audit — the right choice depends on your case’s complexity.
Q: What are my rights as a taxpayer during an IRS audit?
Under the IRS Taxpayer Bill of Rights, you have the right to professional representation, the right to be informed of IRS decisions and their basis, the right to appeal any IRS finding, the right to privacy and confidentiality, the right to a fair and impartial administrative appeal, and the right to pay only the correct amount of tax owed. Your representative can assert these rights on your behalf throughout the process.
Q: Can my representative speak to the IRS without me being present?
Yes. Once you formally authorize a tax professional using IRS Form 2848 (Power of Attorney), your representative can communicate with the IRS entirely on your behalf. You do not need to attend IRS meetings, respond to IRS calls or letters, or interact with IRS agents directly. This protection significantly reduces the risk of inadvertent statements that could complicate your case.
IRS Audit Representation Services
Q: What does IRS Audit Group’s representation service include?
IRS Audit Group provides full-service audit representation including reviewing your tax return and IRS notice, gathering and organizing supporting documents, communicating with the IRS on your behalf, negotiating penalty reductions, pursuing Offers in Compromise where applicable, and guiding you through the appeals process if needed. We charge a flat fee with no hidden charges and offer a free initial consultation for every new client.
Q: What is an Offer in Compromise (OIC) and do I qualify?
An Offer in Compromise is an IRS program that allows qualifying taxpayers to settle their tax debt for less than the full amount owed. The IRS evaluates your income, expenses, asset equity, and ability to pay. Not everyone qualifies — the IRS accepts approximately 40% of applications. A tax professional can assess your eligibility during a free consultation and prepare the strongest possible OIC application on your behalf.
Q: How much does IRS audit representation cost?
IRS Audit Group charges a flat fee for representation — no hourly billing, no hidden charges. The exact fee depends on the complexity of your case and the scope of work involved. We explain all costs clearly after your free initial consultation. If your tax savings are less than our fee, we offer a money-back guarantee. Call us at +1 888 300 6670 to discuss your situation at no cost.
Q: Can IRS Audit Group represent me if I live outside California?
Yes. IRS Audit Group represents clients nationwide. Our offices are located in Beverly Hills and Newport Beach, California, but we handle cases across all 50 states. The audit process is largely conducted remotely — by mail, phone, and electronic submission — so your location is not a barrier to receiving expert representation from our team.
State Tax Audits
Q: What is the difference between an IRS audit and a state tax audit?
An IRS audit is conducted by the federal Internal Revenue Service and relates to your federal tax return. A state tax audit is conducted by your state’s tax agency and relates to your state tax obligations. In California, state audits are handled by the Franchise Tax Board (income tax), the California Department of Tax and Fee Administration (sales tax), or the Employment Development Department (payroll tax). Both types require professional representation.
Q: Can I be audited by both the IRS and California at the same time?
Yes. The IRS and California Franchise Tax Board share information under federal-state data agreements. A federal audit finding frequently triggers a parallel California state audit, and vice versa. If you face simultaneous audits, coordinated professional representation is essential.
Q: What is a California EDD payroll tax audit?
A California Employment Development Department (EDD) payroll audit is initiated when the EDD suspects a business has not accurately reported payroll taxes or has misclassified employees as independent contractors. The process begins with a written notice, followed by an entrance interview and document review.Businesses typically have two weeks to respond to the initial notice and should seek professional representation before contacting the EDD directly.
IRS Payment Plans & Tax Debt
Q: What is an IRS installment agreement?
An IRS installment agreement, also called a payment plan, allows taxpayers who cannot pay their full tax debt immediately to make regular monthly payments over time. Interest and penalties continue to accrue on the unpaid balance until it is paid in full. Installment agreements are available to both individuals and businesses, and a tax professional can help you apply for the plan best suited to your financial situation.
Q: How much do I need to owe to qualify for an IRS payment plan?
There is no minimum amount required to apply for an IRS payment plan. However, the requirements differ based on what you owe. Individuals owing $50,000 or less in combined tax, interest, and penalties can apply for a Streamlined Installment Agreement online without submitting a financial statement. Those owing more than $50,000 must provide Form 433-F, a detailed disclosure of income, assets, and living expenses.
Q: What happens if I miss a payment?
Missing a payment on an IRS installment agreement can cause the agreement to default. If it defaults, the IRS can reinstate collection actions including tax liens, wage garnishments, and bank levies. If you anticipate difficulty making a payment, contact a tax professional before missing the deadline — it may be possible to modify or restructure your agreement proactively rather than dealing with the consequences of a default.
Q: What if I cannot pay anything at all?
If you genuinely cannot pay any of your tax debt, you may qualify for Currently Not Collectible (CNC) status. The IRS can temporarily suspend collection activity if you demonstrate financial hardship. Interest continues to accrue during CNC status, and the IRS will review your financial situation periodically. A tax professional can apply for CNC status on your behalf and advise on the best long-term strategy for your situation.
Q: What is the difference between a tax lien and a tax levy?
A tax lien is a legal claim the IRS places against your assets — including property, financial accounts, and future income — when you have unpaid tax debt. It does not result in immediate seizure but damages your credit and complicates property transactions. A tax levy is the actual seizure of assets such as wages, bank funds, or property to satisfy the debt. Professional representation can help prevent both.
Getting Started with IRS Audit Group
Q: What happens during a free consultation?
During your free consultation, a tax professional will review your IRS or state audit notice, ask questions about your financial situation, explain your rights and options, and give you a clear assessment of your case. There is no obligation and no fee. By the end of the consultation, you will have a concrete understanding of what you are facing and what steps are recommended to resolve it..
Q: What documents should I bring?
Bring the IRS or state audit notice you received, the tax return being audited, W-2s and 1099s for the relevant tax year, bank statements, receipts and invoices supporting your deductions, any prior IRS correspondence, and business records if the audit involves business income or expenses. The more complete your documentation, the faster we can assess your case and begin building your defense.
Q: How quickly can you start?
IRS Audit Group can begin immediately after your consultation. We understand that IRS and state audit notices come with strict deadlines — missing them can result in additional penalties or default judgments against you. We respond to all new inquiries within one business day. Call us at +1 888 300 6670 or use our online contact form and a tax professional will be in touch promptly.