Tag Archive for Audit Assistance

Audit Assistance vs Audit Representation: Is There a Difference? Part 3

Audit Representation

What if you have a situation that you have determined needs a more proactive approach from a tax professional? As always, the first step is to get a good detailed engagement letter in place. If there is ever a time to make sure you have a good “disengagement clause” in place, this is it.

IRS Circular 230 Subpart B covers the Duties and restrictions Relating to practice before the Internal revenue Service. There have been some changes recently that we will discuss in the next section, however, the basics remain. You must be competent, exercise due diligence, and promptly follow lawful requests for information when practicing before the Read more

Audit Assistance vs Audit Representation: Is There a Difference? Part 2

Audit Assistance

Now for the ways I define the difference between Audit Assistance and Audit Representation.  Everyone of you is going to set “the line in the sand” at a different location for this call, so please understand these are not hard and fast “rules”, just what I have found works for me.

Audit Assistance include the items you do for you regular clients that get those pesky letters from the IRS of state that are really no big deal.  Things like:

1. Missing form from a mailed return
2. Missing signature from a mailed return Read more

Better Identity Theft Efforts – S. 2736

On 7/31/14, Senators Wyden and Hatch proposed a comprehensive identity theft bill to reduce identity theft related to federal tax filings. This addresses a serious issue. Individuals should not have to worry that federal tax filings may lead to theft and costly use of their tax identification number. While tax reform bills have also included provisions to lessen identity theft, such proposals should not have to wait for a full tax reform bill to be enacted (which will likely take until at least 2016).  The IRS has also ramped up its efforts to reduce identify theft, but needs more assistance.

S. 2736, Tax Refund Theft Prevention Act of 2014, includes new rules for the following areas: Read more

Audit Assistance vs Audit Representation: Is There a Difference? Part 1

We will be focusing on the difference between Audit Assistance and Audit Representation in the next series of blogs. Is there a difference? Where is the line? Do all taxpayers need actual representation? Does IRS Cir. 230 require representation as opposed to assistance? How does the newly upheld Loving ruling change the playing field?

We will explore and answer these questions and more. We will also review the need for a specific engagement letter for specific situations, how these decisions can affect your E&O coverage, and how they can affect the future of your practice.

The Basics

We will start with the basics of any client contact, no matter the topic of conversation. Read more

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