IRS Practice Series: Representing Your Client at a 1040 Audit

Author: Eva Rosenberg

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 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 2019

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 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 how the Internal Revenue Manual rules regarding audits
  • Recognize where and how to research IRS audit practices for your client's industry
  • Differentiate IRS examiner limitations and rules
  • Recognize how to reconstruct missing data
  • Identify deductions that will definitely be lost during the audit
  • Recognize how to detect your client's unreported income (if any) — before IRS does
  • Identify how to find deductions, credits, or adjustments that were missed on the original tax return
  • Recognize how you can prevail in an audit when your client is in the wrong
  • Describe primary reasons the IRS will select a tax return for an audit
  • Identify options to learn how to do tax research
  • Recognize third-party sources the IRS might use to initiate an audit
  • Identify incorrect responses to make to the IDR and audit invitation
  • Describe methods to learn what the IRS knows about your client
  • Describe how to cancel an audit before it starts
  • Identify how to convince the IRS that your client didn't really earn all that extra money
  • Recognize why it's important to be ready with a good explanation when your client shows both Rental deductions and Office in Home deductions
  • Describe the allowable deduction for business meals
  • Identify the allowable deduction for trucker's meals
  • Recognize readily acceptable ways to reconstruct records
  • Describe what the taxpayer doesn't need to do under the Office in Home Simplified Method
  • Recognize which expenses are no longer deductible for 2018
  • Describe which form the IRS will not likely audit in a 1040 Audit


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of a 1040 audit.

Advance Preparation

Registration Options
Regular Fee $59.00

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