CPA Representation During IRS Audit

CPA Representation During IRS Audit


Do You Need a Phoenix-Based CPA to Represent You During an IRS Audit?


Whether you’ll benefit from CPA representation during an IRS audit depends on the cause of your audit. A properly credentialed and qualified Enrolled Agent (EA) who is also a CPA is often the perfect middle ground for individuals and business owners who are facing an IRS audit. If you need appeal representation in tax court for a complex matter with significant financial or legal repercussions, you might want to hire a tax attorney, but working with an EA CPA is often the best first step in defending yourself during an IRS audit. 

Why Do People and Businesses Get Audited by the IRS?

There are many reasons why a person or business may become the target of an IRS audit. Common causes include:

  • Questions regarding business deductions (like claiming an unusually high amount for home office deductions or vehicle deductions)
  • Multiple years of reported losses in a row (IRS may want to know how you’re still in business or if your business is even real)
  • They suspect you have unreported income or you’re underreporting (for example, leaving off 1099s if you juggle gig / freelance work)
  • Failing to report all capital gains or interest from savings or brokerage accounts
  • You claimed deductions that you weren’t qualified to receive (like claiming the child tax credit if you don’t have a dependent / minor child)
  • Not having the documentation needed to back up your legitimate deductions
  • Incongruous or abnormal behavior (like claiming you donated an unusually large part of your taxable income for the year)
  • Basic mistakes in math or data entry on your W-2 (like accidentally putting yourself in the wrong bracket and underpaying)
  • Failing to maintain compliance with the Foreign Account Tax Compliance Act

While any IRS audit is serious, the consequences can vary depending on the difference between what you owe and what you paid and the type or cause of the infraction.


If you’re a contractor or someone who is paid on a gig basis and you simply misplaced a 1099, the penalty will likely not be severe.


If you knowingly attempted to claim deductions that you weren’t entitled to or hide significant income in order to avoid paying tens of thousands or hundreds of thousands of dollars to the federal government, consequences can be harsh.



Whether you should hire a skilled tax attorney or a CPA will likely depend on the type of errors, the cause of your audit and the ramifications of the audit. For many small business owners and personal income tax filers who are being audited because of a mistake or because they simply didn’t provide the right documentation, an EA CPA like ours at H&H Accounting Services will likely be perfect for your case.  


Preemptively Hiring a CPA

Life has a way of interfering with even the best laid plans. Many tax filers and businesses find themselves in situations where they are behind on taxes or won’t be able to pay their full tax burden by the deadline. Instead of simply not paying and hoping the IRS doesn’t notice, it’s likely in your best interest to speak with an EA CPA. 

Tax experts who are both CPAs and trained business and personal income tax preparers understand the many options you have available in these situations. They may be able to help you with tax debt relief or explain other steps that can help you avoid being late or delinquent on your tax bill. 

Should You Contact Our Phoenix CPA for IRS Audit Defense? 

The team at H&H Accounting Services has helped personal income tax filers and businesses deal with IRS audits in the past. We understand how extraordinarily stressful these situations can be and always seek to restore your peace of mind with knowledgeable, calm and confident guidance. If you think you would benefit from the assistance of an experienced CPA to deal with or avoid an IRS audit, give our team a call at (480) 561-5805.


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