Tax Audit Representation In Ann Arbor, MI

The IRS conducts three main types of audits, each with different procedures and levels of complexity. Understanding which type you are facing helps determine your preparation strategy and the level of representation you need. Austin & Larson Tax Resolution provides tax audit representation in Ann Arbor, MI for all three types.

Correspondence Audit

A correspondence audit is conducted entirely by mail. The IRS sends a letter identifying specific items and asks you to mail supporting documents. You never meet the auditor face to face. These audits are typically limited in scope, often focusing on a single deduction or credit. However, they can be difficult because reaching the reviewing agent by phone is often challenging, and explaining complex situations through written correspondence alone has clear limitations.

Office Audit (Desk Audit)

An office audit assigns a local IRS auditor to your case. This auditor will request one or more face-to-face interviews at an IRS office. They become your primary point of contact and will communicate through interviews, phone calls, and written requests. While the face-to-face format is more intimidating, it allows you (or your representative) to explain your documentation directly and ask questions in real time.

Field Audit

A field audit is the most intensive type. An IRS agent visits your home or place of business to conduct the examination. Field audits typically involve more complex returns, larger amounts, or situations where the IRS wants to see business operations firsthand. These audits carry the highest stakes and the greatest risk of expanded scope. Having a qualified representative present during a field audit is critical.

Three types of professionals are authorized to represent taxpayers before the IRS: Enrolled Agents, CPAs, and tax attorneys. Each brings different strengths. Austin & Larson Tax Resolution has all three on staff, so you are always matched with the right specialist for your audit situation.

• IRS Enrolled Agents (EAs) are federally licensed by the IRS and specialize exclusively in tax matters. They can represent any taxpayer before the IRS for audits, appeals, and collections. EAs are particularly effective for standard audits because tax issues are their sole focus.
• Certified Public Accountants (CPAs) bring deep financial and accounting expertise. They are especially valuable when an audit involves complex financial records, business income, or accounting methodology questions.
• Tax Attorneys provide legal representation and are essential when an audit involves potential criminal liability, Tax Court litigation, or complex legal interpretations of the tax code. Attorneys also offer attorney-client privilege, which means your communications with them are legally protected.
• Bridgette Austin, JD, EA, brings both legal training and IRS-specific expertise. Dustin Larson, EA, CPA, combines accounting precision with enrolled agent authority. Together with our broader team, Austin & Larson covers every angle of audit representation.

Proper preparation is the foundation of a successful audit outcome. Many taxpayers lose deductions not because they claimed them incorrectly, but because they could not find or organize the documentation to prove them. Austin & Larson Tax Resolution helps you prepare thoroughly before any interaction with the IRS.

• Keep organized, complete records for your past tax years in a safe, dry location. Fire, flooding, and moves are the most common reasons taxpayers lose records that could have saved them thousands of dollars.
• Request copies of missing records immediately. Third parties such as banks, medical offices, and vendors often take several weeks to retrieve old documents. Start requesting copies as soon as you receive your audit notice.
• Only send copies to the IRS. Keep all originals. The IRS does not return documents. You may need to resubmit information or use it again during an appeal.
• Organize everything before submitting. Do not send the IRS a disorganized stack of papers. Well-organized records make the auditor’s job easier and demonstrate that your return was prepared carefully.
• Watch every deadline. IRS correspondence contains deadlines that must be met to preserve your right to appeal and your right to petition U.S. Tax Court. Missing a deadline can permanently waive important protections.

If you disagree with the auditor’s findings, you have the right to appeal. The IRS Appeals Office is an independent division within the IRS that reviews audit results with a fresh perspective. Many taxpayers achieve significantly better outcomes at the appeals level than during the initial audit. Austin & Larson Tax Resolution provides full representation through both IRS appeals and Tax Court proceedings.

After receiving the audit report, you generally have 30 days to file a written protest requesting an appeals conference. At appeals, you meet with an IRS Appeals Officer who reviews the case independently. Appeals Officers have authority to negotiate settlements that auditors do not.

If you cannot reach an agreement at appeals, or if you receive a statutory notice of deficiency, you have 90 days to file a petition with the U.S. Tax Court. Tax Court allows you to dispute the IRS’s determination before a federal judge without paying the assessed tax first. This is a powerful right, but it requires timely filing and proper legal representation.

Bridgette Austin, JD, EA, and our team prepare and file appeals protests, represent clients at appeals conferences, and coordinate Tax Court petitions when needed. The key insight about audits is that the initial result is often not the final result. Many cases that look unfavorable after the audit are resolved favorably on appeal.

Michigan taxpayers may face audits from the Michigan Department of Treasury in addition to IRS audits. State audits follow different procedures and timelines, and the Michigan Department of Treasury has its own enforcement division. Austin & Larson Tax Resolution represents clients in both federal IRS audits and State of Michigan audits.

Michigan state audits commonly target income tax discrepancies, sales and use tax for businesses, and withholding tax compliance. Small businesses in Ann Arbor and Washtenaw County are particularly vulnerable to sales tax audits, especially businesses that sell both taxable and exempt products or services.

If you disagree with a Michigan audit result, you can request an informal conference with the Department of Treasury or file a formal appeal with the Michigan Tax Tribunal. Our team handles both federal and state audit representation so you do not need separate firms for each.

What should I do first when I receive an IRS audit notice?

Do not panic, and do not contact the IRS before consulting a tax professional. Read the notice carefully to identify which tax years and line items are under examination, and note every deadline. Then call Austin & Larson Tax Resolution at (866) 668-2953 for a free review of your notice. The sooner you involve a qualified representative, the more options you have to prepare a strong response.

Can an Enrolled Agent represent me during an IRS audit?

Yes. IRS Enrolled Agents are federally licensed to represent any taxpayer before the IRS, including during audits, appeals, and collection proceedings. Enrolled Agents specialize exclusively in tax matters and are particularly effective for audit representation. Austin & Larson Tax Resolution has multiple Enrolled Agents on staff, along with CPAs and tax attorneys, to provide the right level of expertise for your case.

How long does an IRS audit typically take?

The timeline varies by audit type and complexity. A simple correspondence audit may be resolved in a few weeks to a few months. A desk or field audit can take several months to over a year, especially if the scope expands or if you proceed to appeals. Austin & Larson works to resolve your audit as efficiently as possible while protecting your rights at every stage.

What happens if the IRS finds errors on my return?

The auditor will issue a report proposing adjustments to your return. These adjustments can increase your tax liability and trigger penalties and interest. You have the right to agree with the findings, partially agree, or challenge them through the appeals process or Tax Court. Having professional representation ensures you understand each option and make the best decision for your situation.

Can an IRS audit turn into a criminal investigation?

In rare cases, yes. If an auditor identifies patterns that suggest fraud, willful tax evasion, or intentional underreporting, they can refer your case to the IRS Criminal Investigation Division. This is one of the most important reasons to have professional tax audit representation in Ann Arbor, MI. A qualified representative knows how to protect you during the audit and avoid statements or disclosures that could trigger an escalation.

What if I already missed the deadline to respond to my audit?

You may still have options. If your audit has already closed with an unfavorable result, the IRS offers a process called audit reconsideration that lets you present new documentation to reopen the case. However, audit reconsideration does not give you the right to petition Tax Court, so your options are more limited. Call Austin & Larson at (866) 668-2953 to discuss whether reconsideration or another approach is available in your situation.

Does Austin & Larson handle Michigan state tax audits too?

Yes. Austin & Larson Tax Resolution represents clients in both IRS federal audits and Michigan Department of Treasury state audits. State audits follow different procedures and timelines than federal audits, and having a team familiar with both systems ensures consistent representation across all of your tax matters.

How much does tax audit representation cost?

Austin & Larson Tax Resolution offers a free initial consultation to review your audit notice and explain what needs to be done. The cost of full representation depends on the type of audit, the number of issues under review, and whether the case proceeds to appeals. We provide a clear fee estimate before any work begins so you know exactly what to expect.