By Steven Mopsick, Ryan Carrere
Tax accountants and tax attorneys have many skills in common, and clients can often choose one or the other for audit representation. In many situations, the combination of both an accountant and a tax attorney can pack a particularly powerful punch. This is particularly so in the typical unagreed income tax audit, which occurs when the taxpayer and IRS revenue agent cannot agree on audit adjustments at the conclusion of an audit.
Internal revenue agents and their managers like to close out their audits as “agreed cases” where adjustments are proposed, the taxpayer provides some additional argument or information, and the adjustment is reduced in some way or the taxpayer concedes certain adjustments entirely. The audit ends with an agreement between the IRS and the taxpayer to any proposed adjustments.
Where the representative is unable to convince the agent to agree to the “returned position” on all issues (in which case the matter would be classified as a “no change audit”), or where the IRS agent refuses to budge at all, the taxpayer has some choices to make -- and it is here where the participation of a tax attorney may make a difference.