Here are a few people who can help you with various needs before and during an IRS audit.

1. A Family Member

The first place many taxpayers turn when they are notified about any problems with their income taxes is a knowledgeable individual within their circle of friends or family. And a friend or family member can be of great assistance in the beginning.

Why? They're a more objective third party who isn't as emotionally invested in your tax return as you are. If nothing else, sharing your worries with a trusted friend can help you feel more confident. 

2. A Representative

What if you need more practical help rather than moral support? Then you may ask someone to help you research the problem and examine your tax returns. 

The IRS doesn't allow just anyone to look at your tax returns, but you can authorize another individual to view your returns as well as to receive copies of notices from the IRS. This limited representation doesn't allow the person to change your taxes without you, but instead just gives them access to view things. You use Form 8821 (Tax Information Authorization or TIA) to designate such a person. 

When would a TIA be useful? If you just need to look into past tax forms or have lost your own copies, this allows a person to do this research. It would also allow a business partner or spouse to view your tax information — preventing disputes or conflicts.

If you're very uncomfortable contacting the IRS or have difficulty understanding what you need to do, Form 8821 is a good tool to facilitate others helping you.  

3. An Enrolled Agent or CPA

What if you need to go beyond simple research? If you must amend prior returns or respond to an IRS inquiry (or audit), having experienced assistance is recommended. You can work with someone approved to practice before the IRS or give them Power of Attorney to represent you and make adjustments as needed. 

The IRS designates those who are qualified to practice before the agency and represent taxpayers in serious matters. These include Enrolled Agents and CPAs. An Enrolled Agent has passed a three-part exam and completes continuing education requirements annually. A CPA (Certified Public Accountant) has a degree and additional experience and training in accounting matters.

Non-approved individuals, such as un-enrolled tax preparers, are limited in what they can do before the IRS, leaving you to do much of the work as well. 

4. A Tax Attorney

If your situation may end up with serious charges, such as tax fraud or identity theft, you should also have a tax attorney on your team. Just as with any court, an attorney is the one to represent you in legal matters. Even having a fully executed Power of Attorney (Form 2848) filed with the IRS will not allow others to represent you before an administrative judge. 

Getting the right type of assistance is part of successfully handling any issues with your income taxes. Even if you start out with personal help from friends or family, knowing when to hire more experienced individuals is the smart thing to do. The result will be a better outcome and reduced stress. 

Bliss & Skeen Certified Public Accountants can help with all levels of tax matters both business and personal. Make an appointment today to find the best route for your particular circumstances.