Expert Representation
With LocalAccuntant.ai at your side, your business is well-defended throughout the audit process. Our CPAs stand between you and the auditors. We offer expert representation, handling all your communications and negotiations.
400% ROI*
From small business services on average
25 Hours**
Saved during tax preparation
1 Million+***
Consultations delivered
Full-Service Tax Audit Support
Our experts will ensure all the income tax audit paperwork is in order.
Complete Support
We handle everything: developing an action plan, crafting a communication strategy, and preparing all required financial documents.
Fair Pricing
Enjoy transparent pricing with no hourly rates or hidden fees. What you see upfront is exactly what you get.
Safeguarding Your Rights
We represent you to ensure your taxpayer rights are protected and that you receive a fair audit hearing.
Thorough Documentation Review
Our team at LocalAccountant.ai thoroughly reviews your documentation to timely identify potential issues. We help you keep your records in top shape to avoid negative audit outcomes and penalties.
Proactive Audit Prevention
The best defense is a good offense, which is why LocalAccountant.ai employs a proactive approach to prevent audits altogether. We work with you all year long to maintain impeccable financial records, ensuring compliance. Our proactive measures help minimize your audit risk.
Learn More About Tax Audit Defense
Frequently Asked Questions about Tax Audit Defense
Local Accountant’s audit defense service helps protect your rights and interests following an IRS audit notice, providing peace of mind. While an audit notice might be alarming, it's important to understand that audits can be triggered for virtually any reason. Some audit notices might not indicate a problem, but rather show that the IRS is interested in scrutinizing your business tax returns.
A common audit trigger occurs when a business tax return differs from what the IRS deems normal. For example, say you own a laundromat and are being audited for having taken very high deductions for water. In this hypothetical scenario, the IRS may compare your utility expenses to comparable laundromats in your area and flag high utility usage during your audit. However, this can be legitimate due to events that use large volumes of water like a water leak.
A successful audit defense typically involves substantiating that your tax information or tax position is correct.
There is a distinct difference between a notice and an audit. A typical IRS notice highlights specific areas of your return needing attention, such as missing information or a mathematical error. This does not necessarily mean you are being audited, as many notices are automatically generated. In response, you must provide the requested information or agree to the mathematical change or correction.
An audit is much more comprehensive in scope. Typically, an IRS agent will scrutinize particular areas of your tax return and seek to substantiate your claims via proof of your financial records. If questionable patterns emerge, the IRS agent may opt to review previous tax returns.
We recommend our audit defense solution to most of our small business clients in addition to other services, such as full-service bookkeeping and tax advisory. These additional services ensure that your books and tax situation are accurate, up-to-date, and ready for IRS scrutiny if you receive an audit notice.
Whether you've received IRS audit notices before or it's your first time, you should always consult your tax professional.
When you use our audit defense service, we develop your custom action plan, create a communication strategy, and prepare all relevant financial accounting documents to support your case and protect your rights. Knowing you have experts on your side helps make a stressful process much easier to manage.
The optimal audit defense strategy involves seeking help from experienced tax professionals and actively engaging with the process. While the IRS can seem intimidating during an audit, they are helpful and professional with cooperative business owners. However, not every business cooperates.
Ignoring audit notices further exacerbates issues and can lead to the IRS assessing interest and penalties based on the information they have on file, even if it is incomplete. For example, they might not have your expenses on file. However, if they have an income source through IRS Form 1099-MISC, they will assess your taxes without considering deductions. Penalties can also lead to liens being placed on your property.