EA Exam Prep Part 3: Audit Workpapers (Currently Unavailable)

Author: Eva Rosenberg

This is the seventh class of the EA Exam Prep Part 3 series. Regardless of your audit experience, this course by TaxMama® is a must for anyone who works, or is considering working, in the area of audits. Begin with an understanding of why audits occur, what information is sought, and how they start. Learn the first thing you should do to prepare for the audit. Review the various forms and Proof of Cash Report that will be a part of the process. Learn how to interpret Form 4549, Income Tax Examination Changes, which will be provided by the auditor. Review the 30-day letter and 90-day letter and how to respond to each. If the end result is a balance owed, find out how to reduce it. Review a sample audit, analyze the information, and more.

Publication Date: October 2019

Designed For
Tax practitioners of all levels, regardless of experience, who want to learn about practicing before the IRS and more. Excellent training for staff working in tax offices, accounting practices, corporate settings, independent bookkeepers, and others who must proofread tax returns containing this information. Passing the EA exam, they will be able to pull client records and transcripts and relieve the tax preparers from routine tasks. This is more than just a basic course. This course provides an in-depth look at the audit process and workpapers. It is especially helpful to those with no hands-on experience with IRS audits and tax representation and those who are returning to tax preparation after years in corporate or other jobs. This course is also designed to help CPAs earn their Enrolled Agent credential so they can practice anywhere in the country without re-certifying.

Topics Covered

• What an examiner is looking for in an audit
• Reasons for audits
• Avoiding audits
• The importance of disclosures
• The audit process
• Finding fraud
• Proof of Cash Report
• Proposed assessments
• Form 4549, Income Tax Examination Changes
• Form 4549-E, Income Tax Discrepancy Adjustments
• The 30-Day Letter - Notice of Proposed Income Tax Deficiency
• The 90-Day Letter - Statutory Notice of Deficiency
• One simple thing that prevents a 90-day letter from being issued
• The first thing to do in an audit
• Appeals
• Audit Technique Guides
• Assessing client information
• Presenting your report to the auditor
• Review of an actual audit case
• Reducing the balance owed by the client
• Audit Information Management System (AIMS) Codes

Learning Objectives

• Recognize the reason for audits
• Describe the audit process
• Recognize how to avoid audits
• Identify the 30 and 90 day letters, how to avoid them, and the steps to take if received
• Describe the appeal process
• Identify ways to reduce balance owed
• Recognize how to analyze Form 4549, Income Tax Examination Changes
• Identify the various forms of paperwork associated with audits, the purpose of each, and how to prepare them

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None