HOFFLERSMITH FINANCIAL – TAX PROBLEM SPECIALIST
IRS Audit & Notice Assistance
Facing an IRS audit or examination? We stand between you and the IRS so you don’t have to go it alone.
IRS Audit Representation
Being selected for an IRS audit is stressful, but having professional representation changes everything. As licensed Enrolled Agents, our team is federally authorized to represent taxpayers before the IRS at all levels — including audits, appeals, and collections.
Types of IRS Audits We Handle
- Correspondence Audit — The most common type; the IRS requests documentation by mail
- Office Audit — You are asked to bring documents to a local IRS office
- Field Audit — An IRS agent comes to your home or business
- TCMP Audit — A comprehensive line-by-line examination
How We Represent You
- Review all IRS correspondence and identify exactly what is being examined
- Gather and organize your documentation to support your return
- Communicate directly with the IRS examiner — you do not have to speak with them
- Negotiate audit results and challenge findings we disagree with
- File a protest or appeal if the IRS result is unfavorable
The Most Important Rule
Do not meet with the IRS alone. Anything you say can be used against you. An experienced representative knows what to provide, what not to volunteer, and how to protect your rights throughout the process.
Types of IRS Audits
Not all IRS audits are the same. Understanding which type you are facing helps determine the appropriate response and level of representation needed.
Correspondence Audit
The most common type, a correspondence audit is conducted entirely by mail. The IRS sends a letter requesting documentation to verify specific items on your return such as charitable contributions, medical expenses, or business deductions. These audits are generally limited in scope and can often be resolved by providing the requested records within the deadline specified in the notice.
Office Audit
An office audit requires you to appear at a local IRS office with documentation supporting specific items on your return. These audits are broader in scope than correspondence audits and may cover multiple areas of your return. Having professional representation at an office audit is strongly recommended because IRS examiners may ask questions or request documents beyond the original scope if they identify potential issues during the meeting.
Field Audit
The most comprehensive type, a field audit involves an IRS Revenue Agent visiting your home or business to examine your records. Field audits typically target business returns, high-income individuals, or situations where the IRS suspects significant underreporting. These audits can last days or weeks and require extensive preparation and experienced representation.
What to Do When You Receive an Audit Notice
The most important thing is to not panic and not ignore the notice. Every IRS audit notice has a response deadline, and missing that deadline can result in the IRS making changes to your return without your input. Here is what we recommend: Do not call the IRS yourself before consulting with a tax professional. Do not provide any documents or information beyond what is specifically requested. Do not volunteer information or attempt to explain items that are not part of the audit scope. Do contact HofflerSmith immediately so we can review the notice, assess the situation, and develop a response strategy.
How HofflerSmith Represents You in an IRS Audit
As Enrolled Agents, we have unlimited practice rights before the IRS. This means we can represent you in any type of audit without you needing to be present. Our audit representation process includes a thorough review of the return under audit and all supporting documentation, identification of any potential issues beyond the scope of the audit that should be proactively addressed, preparation of a comprehensive response package organized exactly the way IRS examiners expect to receive it, direct communication with the IRS examiner on your behalf, and negotiation of any proposed adjustments to minimize additional tax, penalties, and interest.
Your Rights During an IRS Audit
The IRS Taxpayer Bill of Rights guarantees you several important protections during an audit. You have the right to professional representation, meaning you do not have to face the IRS alone. You have the right to pay only the correct amount of tax. You have the right to appeal IRS findings you disagree with. You have the right to privacy and confidentiality regarding your tax matters. You have the right to know why the IRS is requesting information and how it will be used. HofflerSmith ensures your rights are protected throughout the entire audit process.
Frequently Asked Questions About IRS Audits
How far back can the IRS audit my returns?
Generally, the IRS can audit returns filed within the last three years. If they identify a substantial error (more than 25 percent of income omitted), they can go back six years. There is no time limit for cases involving fraud or unfiled returns.
What triggers an IRS audit?
Common audit triggers include high deductions relative to income, unreported income flagged by third-party reporting, large charitable contributions, home office deductions, significant discrepancies between reported income and lifestyle indicators, and random selection through the IRS Discriminant Function System.
What happens if the IRS finds I owe more?
If the audit results in additional tax owed, you have the right to agree and pay, or disagree and appeal. If you cannot pay the additional amount, we can negotiate an installment agreement or other resolution. Audit findings can also sometimes be reduced through effective negotiation with the examiner or through the IRS appeals process.
Received an IRS audit notice? Contact HofflerSmith Financial immediately at (856) 740-4912. Early representation by an experienced Enrolled Agent is the single most important step you can take to protect yourself during an audit.
Types of IRS Audits
Correspondence Audit
The most common type, conducted by mail. The IRS requests documentation for specific items like charitable contributions or business deductions. Often resolved by providing requested records.
Office Audit
Requires appearing at an IRS office with documentation. Broader scope than correspondence audits. Professional representation is strongly recommended.
Field Audit
An IRS Revenue Agent visits your home or business to examine records. The most comprehensive type, targeting business returns and high-income individuals. Can last days or weeks.
What to Do When You Receive a Notice
Do not panic and do not ignore it. Every notice has a response deadline. Do not call the IRS yourself before consulting a tax professional. Do not provide documents beyond what is requested. Do not volunteer information. Contact HofflerSmith immediately so we can review the notice and develop a strategy.
How We Represent You
As Enrolled Agents, we have unlimited practice rights before the IRS. We can represent you without you being present. Our process includes reviewing the return and documentation, identifying potential issues proactively, preparing organized response packages, communicating directly with the examiner, and negotiating proposed adjustments.
Your Rights During an Audit
The Taxpayer Bill of Rights guarantees professional representation, paying only the correct amount, appealing findings you disagree with, privacy and confidentiality, and knowing why information is requested. HofflerSmith protects your rights throughout the process.
Frequently Asked Questions
How far back can the IRS audit?
Generally three years. Six years if more than 25 percent of income was omitted. No limit for fraud or unfiled returns.
What triggers an audit?
High deductions relative to income, unreported income, large charitable contributions, home office deductions, and random selection.
What if I owe more after the audit?
You can agree and pay, or disagree and appeal. We can negotiate installment agreements if needed.
Received an audit notice? Contact HofflerSmith immediately at (856) 740-4912. Early representation is critical.
Ready to Resolve Your Tax Issue?
HofflerSmith is a family-owned firm in Cherry Hill, NJ. We represent individuals and businesses directly with the IRS — so you don’t have to face this alone.