Overview

Navigating an IRS Tax Audit examines the nature of IRS tax audits, the format they may take and the reasons why any particular tax return might be chosen for audit. It then discusses taxpayer representation before the IRS and the power of attorney needed to engage in client representation.

The possibility of receiving a letter from the IRS requesting documents for a tax audit often produces considerable taxpayer fear. However, an IRS tax audit doesn’t suggest that the IRS has found a significant error or omission on the client’s tax return. Instead, it is only a review and examination of a client’s tax return rather than an indication the IRS has identified the taxpayer as a tax cheat.

Learning objectives

Upon completion of this course, students should be able to:

• Describe the types of tax audits initiated by the IRS and the typical taxpayer issues addressed;
• Recognize how an IRS tax audit is normally conducted and limited by the statute of limitations;
• List the factors that increase the likelihood of an IRS tax audit and strategies to minimize the chance of an IRS tax audit;
• Describe the nature and function of a power of attorney; and
• Identify the acts that may be performed for a client under a power of attorney.