An IRS audit is a review of a tax return to confirm that the income, deductions and credits on it are correct. IRS audit representation means that a person who is authorized to practice before the IRS, such as a CPA, handles the audit with the IRS on your behalf. Representation works best when you understand what it can and cannot do.
What an audit is, and what it is not
The IRS says returns can be selected through computer screening that compares a return to norms, through random selection, or because the return involves another taxpayer, such as a business partner, whose return is being examined. Being selected does not automatically mean you made a mistake.
Not every IRS letter that questions a return is an audit. Automated matching letters, such as the CP2000 notice, compare your return with income reports the IRS received from employers and banks. They have their own response rules, even though the work involved can look similar. If you are unsure what you received, start with our guide to reading an IRS notice.
What a representative does in an audit
Once you sign a power of attorney (see Form 2848), your representative can usually take over most of the contact. Typical work includes:
- Reading the letter, confirming it is genuine, and calendaring every deadline.
- Identifying which tax years and which items the IRS is actually questioning, so you answer only what was asked.
- Gathering and organizing records such as bank statements, receipts, mileage logs, invoices and contracts.
- Preparing a written response or an indexed set of documents, and sending it in a way that confirms delivery.
- Attending office or field meetings, in many cases without you, although the IRS can still ask you to appear.
- Reviewing the examiner's proposed changes, checking the math, and explaining your options if you disagree.
Our page on how to respond to an audit letter walks through the first steps in more detail, and the page on types of IRS audits explains the difference between mail, office and field audits.
Who may represent you
Attorneys, CPAs and enrolled agents who are in good standing may represent taxpayers before the IRS. Other people have narrower rights. An unenrolled return preparer, for example, can represent a client only in an examination of a return that preparer prepared and signed, and only before examiners and similar staff, not before Appeals or revenue officers. The IRS regulates practitioners through a set of rules known as Circular 230, which covers duties such as due diligence, honesty with the IRS and handling of client records.
You can also represent yourself, and many straightforward correspondence audits are handled that way. Representation matters more as the stakes rise: several years under review, business income, foreign accounts, large deductions, or a request to extend the audit period.
What representation does not promise
No professional can promise how an audit will end. The examiner decides what the records support, and the outcome depends on the documents, the law and the facts. A representative cannot hide information, create records that do not exist or ask you to. Interest and any penalties that apply to additional tax still apply. If the IRS proposes changes you disagree with, your representative can explain the next steps, but those steps have their own deadlines.
How audits end
The IRS describes three outcomes. In a no change result, every item reviewed was supported. In an agreed result, you accept the proposed changes, sign the examination report, and arrange payment. In a disagreed result, you can ask for a conference with an IRS manager, consider mediation, or file an appeal if enough time remains on the statute of limitations. Our guide to IRS Appeals covers that path, and the page on the statute of limitations explains why signing an extension request deserves careful thought.
Your rights
The IRS lists ten taxpayer rights, including the right to challenge its position and be heard, to appeal in an independent forum, to privacy and to retain representation. If you cannot afford a representative, a Low Income Taxpayer Clinic may help, and the Taxpayer Advocate Service can assist when a problem is not resolved through normal channels.
How we can help
As a CPA firm, we can review the audit letter with you, confirm which years and items are in question, organize your records, prepare the response and communicate with the examiner once you sign a power of attorney. If the audit points to a filing problem, we can also prepare amended or late returns. This is general information, and every audit depends on its own facts.
Learn more about our IRS and state tax representation work, or contact us to talk through the letter you received.
Frequently asked questions
Does hiring a representative look suspicious to the IRS?
No. The right to retain representation is one of the ten taxpayer rights the IRS publishes. A representative often helps because the response is organized and limited to what the IRS asked.
Can the IRS call me about an audit?
The IRS says it starts audits by mail. Be cautious about unexpected calls that demand payment or personal information, and read our guide on whether an IRS letter is real.
Do I have to attend the audit meeting myself?
Not always. With a valid power of attorney, a representative can often attend for you, but the IRS may still ask you to appear. Your representative will tell you if that happens.
How far back can an audit go?
Generally the IRS can examine returns filed within the last three years, and it can look at more years if it finds a substantial error. It usually does not go back more than six years. The rules are explained on our statute of limitations page.
Official sources
- IRS: IRS audits
- IRS: Publication 947, Practice before the IRS and power of attorney
- IRS: Taxpayer Bill of Rights
- IRS: Forms and publications about your appeal rights
This page is a plain-language summary. The official source controls if there is any difference.
General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.