Why Would I Need IRS Representation?


No business owner wants to receive an IRS audit letter. From panic to fear, IRS audits elicit an immediate reaction from even the most by-the-book business owners. The harsh reality is that anyone can receive an IRS audit letter, regardless of how comprehensive the business’s accounting, bookkeeping, tax planning, and tax preparation may be. Whether your business is audited due to something the IRS deems necessary to question or it is audited at random, it is important to understand the value of hiring IRS representation.

The reality is that panic and fear only ensue due to the unknown elements linked to an IRS audit. As such, most business owners will immediately look to outside resources to assist in the process. IRS representation means leaning on the expertise of a third-party accounting partner to facilitate:

  • Overall management of the process
  • Addressing documentation requests
  • Thoroughly reviewing IRS questions and preparing appropriate responses
  • Handling any additional issues as needed

Unfortunately, those who choose to handle audits alone are often left at the disposal of an IRS auditor who knows that you are inexperienced. As a result, the auditor will often get the audited party to reveal more information than necessary in order to find additional issues on the tax return and thus change your additional taxes. The risk is too great to approach an IRS audit alone without the guidance from a professional.

IRS representation services vary greatly depending upon the size of your business and the particular audit issues that are at hand. Some of the more common services include:

  • Response to IRS Correspondence
  • IRS Levies and Liens
  • Offers in Compromise (Forms 433-A and 433-B Preparation)
  • Appeals Procedures
  • Corporate Income Tax Issues
  • Collection Procedures
  • Innocent Spouse Relief
  • Payroll Tax Penalties and Interest

No matter what the specific challenge may be, attempting to resolve an IRS issue without the guidance from an experienced professional is never a good idea. At Ellrich, Neal, Smith & Stohlman, P.A, our firm knows the tax laws, and we know how your tax return was prepared. We can provide complete representation services before the IRS as well as state and local taxing authorities. We are also experienced in negotiating Offers in Compromise with the IRS to help reduce your tax liabilities.