IRS Practice Series: Representing Your Client at a 1040 Audit (Currently Unavailable)

Author: Eva Rosenberg

CPE Credit:  3 hours for CPAs
3 hours Federal Tax Related for EAs and OTRPs
3 hours Federal Tax Law for CTEC

During this course, you'll learn about taking over an audit, constructing records for clients who failed to utilize proper accounting methods, preparing records and power of attorney, as well as communicating with the IRS.

Publication Date: July 2018

Designed For
Any proactive, current or prospective, Circular 230 practitioner that understands the IRS is ramping up the "close the tax gap". Tax practitioners who want to protect their existing clients from IRS' predatory audit actions. And tax practitioners who want to grow their business into this rapidly expanding market.

Topics Covered

  • All About Audits
  • How Audits Happen
  • Why They Happen
  • What IRS Knows
  • How to Get Prepared

Learning Objectives

  • Identify the Internal Revenue Manual rules regarding audits
  • Recognize what happens when a tax cheater is turned into the IRS
  • Identify what occurs when your client's tax return has been selected for an audit and the IRS requires a face-to-face meeting with your client
  • Recognize if you can get an audit moved to another location
  • Describe what to do when representing a client in an audit when criminal issues surface involving your client
  • Recognize what to be careful to have your client avoid deducting when preparing a tax return
  • Differentiate which deductions claimed by your client would be especially problematic from the IRS point of view in an audit
  • Recognize what to do if representing a client in an audit where criminal issues surface involving the client
  • Describe what happens when you turn in a tax cheater
  • Identify if you can get an audit moved to another location
  • Identify responses you can make to the IDR and audit invitation
  • Recognize how to cancel an audit before it starts
  • Differentiate which methods to use before an audit to learn what the IRS knows about your client
  • Identify common types of IRS audits
  • Recognize how you can prevail in an audit when your client is totally in the wrong
  • Recognize options of what to do if you don't know how to do tax research
  • Identify primary reasons the IRS will select a tax return for audit
  • Describe third-party sources the IRS might use to initiate an audit
  • Recognize lottery audits
  • Describe an IDR and responses to an audit invitation
  • Differentiate statements regarding tax practitioner's confidentiality privlege
  • Recognize which methods you can use to learn what the IRS knows about your client
  • Identify how to convince the IRS that your client didn't really earn extra money
  • Describe why it's important to be ready with a good explanation when your client shows both Rental deductions and Office in Home deductions
  • Recognize allowable deductions for business meals and entertainment
  • Identify the allowable deduction for trucker's (workers subject to DOT rules) meals
  • Describe acceptable ways to reconstruct records to prove cost of goods sold

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (3 hours)

Program Prerequisites
A basic understanding of a 1040 audit.

Advance Preparation
None.

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