Tax & Business SolutionsBlaga Veleva, EA · Houston, Texas(281) 785-0460

Audit representation

You got an audit letter. Here is the plan.

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Audit representation

If you get an IRS audit letter, note the response date, gather only what the letter asks for, and decide who will speak to the examiner. You have the right to an authorized representative. Blaga Veleva, EA, can deal with the IRS for you under a power of attorney, so you may not need to attend at all.

What should you do this week after an audit letter?

Find the due date and confirm the letter is real. The IRS audit page says it notifies you by mail and won't start an audit by telephone. A call claiming to be an audit is a scam sign.

  1. Identify the letter. A Letter 566 opens an exam. A CP75 audits credits and holds part of a refund.
  2. Read the list of items being questioned. The audit covers those items, not your whole life.
  3. Collect copies, never originals.
  4. Do not call the examiner to "just explain." Let your representative make the first contact.

Is a CP2000 an audit?

Not exactly. A CP2000 or CP2501 is a matching notice: income reported to the IRS doesn't match your return. It proposes a change and needs an answer by the date listed, but no examiner reviews your records. Many of these are fixed with one clear written reply. Read it closely, because the proposed change can raise, lower or leave your tax the same. If you agree, sign and return the response form. If you don't, explain why and attach proof, such as a corrected 1099 or a statement showing your cost basis. Blaga can prepare that reply under Form 2848.

How far back can an IRS audit go?

Generally three years. The IRS says it can include returns filed within the last three years. If it finds a substantial error, it may add years, but "we usually don't go back more than the last six years." Keep records for the years in question ready, along with the prior year if it carried anything forward. If the audit spreads to other years, the same rights and the same representative apply.

Can an enrolled agent go to the audit for you?

Yes. The IRS lists "a right to representation, by oneself or an authorized representative" among your audit rights. Enrolled Agents have unlimited practice rights, per the IRS enrolled agent page. With Form 2848 signed, Blaga answers the letters, sends documents, and meets the examiner. Audits run by mail or in person, and an in-person audit can be held at a representative's office.

What happens when the audit ends?

You get a report and a deadline. A Letter 525 with Form 4549 gives 30 days to protest to the IRS Independent Office of Appeals. If it goes further, a CP3219A notice of deficiency opens a 90-day window for U.S. Tax Court, which the IRS can't extend. You have the right to appeal both within the IRS and in court. Mark both dates on a calendar the day the letter arrives. A missed Tax Court date can't be fixed later.

What if the audit leaves you with a balance?

Then it becomes a collection case, with the same options as any other debt. You can ask for penalty relief on accuracy or late-payment penalties where you qualify, then set up an installment agreement. Blaga can carry the case from exam into collection without you starting over.

What should you bring to an IRS audit?

Only what the letter asks for, organized item by item. If the letter questions car expenses, bring the mileage log and receipts for that year, not your whole file cabinet. Label each group with the line of the return it supports. Make copies and keep the originals. Missing records can often be rebuilt from bank statements, and our catch-up bookkeeping work helps when the books were never kept. Blaga reviews the package before anything is sent.

Questions

Questions people ask

Q1What should I do if I get an IRS audit letter?

Note the response date, read which items are questioned, and gather copies for only those items. Then have a representative contact the examiner. Never ignore it: unanswered items are disallowed and a bill follows.

Q2Can an enrolled agent go to the audit for me?

Yes. With Form 2848 signed, Blaga Veleva, EA, can speak to the examiner, send documents, and attend meetings in your place. Enrolled Agents have unlimited practice rights before the IRS.

Q3Who offers IRS audit help in Houston?

Tax & Business Solutions, run by Blaga Veleva, EA, at 5629 FM 1960 West, Suite 221. Call (281) 785-0460 for a free consultation, or upload the letter through the secure portal.

Q4Can the IRS audit me at my home or business?

Yes. The IRS says in-person audits may take place at an IRS office, your home, your business, or your representative's office. Many audits are done by mail instead.

Q5Can I appeal an IRS audit result?

Yes. You have the right to appeal within the IRS and before the courts. A Letter 525 gives 30 days to file a protest with the Independent Office of Appeals.

Reply slip

Start with a free consultation.

Tell us what is going on, or just call. Keep the IRS letter in front of you when we talk.

Or call the office(281) 785-0460

5629 FM 1960 West, Suite 221, Houston, TX 77069. Please call before you come; phone and secure portal work too.

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