HofflerSmith Tax Advisory

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.

What to Do When You Receive an IRS Audit Notice

Receiving an audit notice from the IRS can be alarming, but it does not have to be a disaster. The key is responding promptly and correctly. At HofflerSmith Financial Services in Cherry Hill, NJ, we represent taxpayers in all types of IRS audits and examinations, from simple correspondence audits to complex field audits. Our enrolled agents handle the entire process so you do not have to face the IRS alone.

Types of IRS Audits

The IRS conducts three main types of audits. A correspondence audit is conducted entirely by mail and usually involves verification of one or two specific items on your return. An office audit requires you to visit an IRS office and bring documentation supporting specific areas of your return. A field audit is the most comprehensive type, conducted at your home or business by an IRS Revenue Agent who reviews your complete financial records. Each type requires a different preparation strategy.

Why Were You Selected for an Audit?

The IRS selects returns for audit through several methods. The Discriminant Information Function scoring system uses statistical analysis to identify returns with a high probability of errors. Document matching programs compare reported income with information received from employers and banks. Specific triggers that increase audit risk include unusually high deductions relative to income, large charitable contributions, home office deductions, significant business losses, and discrepancies between reported income and information returns.

Your Rights During an IRS Audit

As a taxpayer, you have important rights during an audit. You have the right to professional representation, meaning you do not have to speak with the IRS directly. You have the right to know why the IRS is asking for information, what they will do with it, and what happens if you do not provide it. You have the right to appeal the audit findings if you disagree, and you have the right to confidentiality regarding your tax information.

How We Handle Your Audit

When you engage HofflerSmith, we begin by obtaining your power of attorney so the IRS communicates exclusively with us. We review the audit notice and your original return to understand exactly what the IRS is examining. We gather and organize all supporting documentation, identify any weaknesses in your position, and develop strategies to address them. During the audit, we present your documentation in the most favorable light and negotiate on your behalf to minimize any proposed adjustments.

Common Audit Outcomes

An audit can result in no change, meaning the IRS agrees your return was correct as filed. It can result in an agreed change, where you accept the proposed adjustments. Or it can result in a disagreed change, where you dispute the IRS findings and exercise your right to appeal. We advise you on whether to accept or contest proposed adjustments based on the strength of your position and the potential financial impact.

Audit Reconsideration

If you previously received an audit assessment but did not respond or could not provide documentation at the time, you may be eligible for audit reconsideration. This process allows you to present new information and have the audit findings reviewed. We have successfully used audit reconsideration to reduce or eliminate tax assessments that clients initially accepted by default.

Preventing Future Audits

After resolving your current audit, we can review your overall tax situation and recommend strategies to minimize future audit risk. This includes ensuring proper documentation practices, reviewing deductions for audit vulnerability, and implementing recordkeeping systems. Our year-round tax planning services help you stay compliant while taking advantage of every legitimate tax benefit.

If you have received an IRS audit notice, do not delay. Contact HofflerSmith Financial Services at 856-740-4912 for immediate representation.

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