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

Author: Eva Rosenberg

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. Including changes in effect due to COVID19.

Publication Date: July 2021

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
• How to Communicate with IRS Examination during COVID19

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
• 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
• Recognize third-party sources the IRS might use to initiate an audit
• 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
• 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
• Recognize what best supports the cancellation of an audit before it begins
• Identify which Internal Revenue Code sections addresses deductions for certain employee benefit
• Describe what is not needed when using the Office in Home Simplified Method
• Describe correct statements regarding the audit process

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of a 1040 audit.

Advance Preparation
None.